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Chip Stocks Tumble on China Tech Fears
13 Oct
Summary
- US stock futures show mixed signals ahead of Tuesday's trading.
- Major US banks start earnings season with mixed results.
- Weakness in chip stocks impacts Nasdaq futures negatively.
US stock market futures are signaling a cautious and mixed opening for Tuesday's trading session. Investors are closely examining the initial quarterly earnings reports from prominent US banks, which officially commenced the earnings season. This period is anticipated to reveal substantial profit growth for the S&P 500, with technology and energy sectors expected to lead.
However, the tech sector, particularly chipmakers, faced renewed pressure. Nvidia, AMD, and Marvell Technology saw their stock prices decline. This downturn is linked to reports concerning technological advancements by China's CXMT, influencing investor sentiment. Other chip-related companies like Micron Technology and data storage firms also experienced dips.
Despite broader market uncertainties, some individual stocks showed resilience. UnitedHealth climbed significantly after enhancing its 2026 profit forecast due to improved cost management and margins. Conversely, Johnson & Johnson's shares fell despite exceeding profit expectations for the third quarter.
Overall market performance shows positive year-to-date gains across major indexes. The S&P 500 is up 14 percent, the Nasdaq has gained 17.2 percent, the Dow Jones has risen 7.9 percent, and the Russell 2000 has increased by 12.6 percent.
