U.S. stocks settled lower on Tuesday, with the Nasdaq Composite declining approximately 0.15% to close at 27,204.38. The decline was largely driven by a drop in chip stocks, which fell after China’s CXMT announced progress on a more efficient memory-cell design. This news sent Samsung Electronics Co. Ltd. (OTC: SSNLF) and SK Hynix Inc. (NASDAQ: SKHY) down in Seoul. In the U.S., Micron Technology Inc. (NASDAQ: MU) dropped 3.6%, while Applied Materials Inc. (NASDAQ: AMAT) tumbled 6.7%.
Bank stocks also saw mixed results. JPMorgan Chase & Co. (NYSE: JPM) reported downbeat earnings for the third quarter, while Goldman Sachs Group Inc. (NYSE: GS) beat market expectations. Wells Fargo & Co. (NYSE: WFC) fell 3.1% following weak quarterly revenue. The Dow Jones Industrial Average closed lower by around 181 points to 51,670.10, and the S&P 500 fell 0.02% to 7,805.45.
On the economic front, the U.S. NFIB small business optimism index fell to 97.9 in September, the lowest level in three months, compared to 98.7 in August. Most sectors on the S&P 500 closed in the red, with health care, consumer staples, and financial stocks recording the biggest losses. Energy and communication services stocks were the only sectors to close higher.
The CNN Money Fear & Greed Index showed a decline in overall market sentiment, dropping from 46 to 45. At this reading, the index remained in the “Neutral” zone. Investors are currently awaiting earnings results from Bank of America Corp. (NYSE: BAC), Morgan Stanley (NYSE: MS), and Progressive Corp. (NYSE: PGR) on Wednesday.
