Technology shares tumbled on Wall Street on Tuesday, dragging the Nasdaq Composite down as investors weighed mixed bank earnings and remarks from Broadcom CEO Hock Tan regarding chip sector valuations.
Nasdaq and Chip Stocks Slide as Tech Shares Fall
The Nasdaq Composite dropped 0.15% to close at 27,204.38 points during the Tuesday session. The S&P 500 slipped 0.02% to 7,805.45 and the Dow Jones Industrial Average fell 0.35% to 51,670.10. Selling pressure concentrated heavily in semiconductor equities.
The Philadelphia Semiconductor Index declined 0.23%, extending its losing streak to five consecutive sessions. Broadcom CEO Hock Tan on Monday compared certain sector investment flows to gambling in a casino.
Reports regarding technological advancements at Chinese memory chip manufacturer CXMT stoked anxiety over competition in the sector.
Micron Technology shares fell 3.6%, Applied Materials tumbled roughly 7%, and Broadcom managed a modest 0.7% gain. The five-day slide erased more than 8% from the Philadelphia Semiconductor Index. The index remains up more than 70% since the start of the year.
Apple Reaches Record Value While Major Banks Report Earnings
Apple shares reached an intraday record of $348,15 before settling up 0.1% at $341,27, bringing the tech giant’s market capitalization to $4,98 trillion. Strong projected earnings growth tied to the artificial intelligence trend has helped sustain valuations for select mega-cap technology leaders.
Citigroup shares dropped 5.6% and Goldman Sachs dipped 0.2%, even though both firms surpassed analyst profit expectations. Wells Fargo fell 3.1% after reporting lower-than-expected net interest income. JPMorgan Chase closed down 0.9% following a rare profit miss. London Stock Exchange Group data indicates that analysts still anticipate S&P 500 companies to post third-quarter earnings growth exceeding 30%, driven primarily by artificial intelligence technology firms.
