Chip Stocks Slide, Dragging Nasdaq Despite Mixed Bank Results
A broad decline in semiconductor shares pushed the Nasdaq lower on Tuesday. Goldman Sachs posted a large earnings beat, while JPMorgan missed estimates and Bank of America was fined $1.21 billion over anti-money-laundering failures. ASML's better-than-expected fourth-quarter guidance provided a bright spot as Asian markets attempted a recovery.
Tuesday's chip retreat was broad: Applied Materials fell 8.1%, Micron 5.3%, KLA 4.1%, and Cadence 3.5%, weighing on the Nasdaq. Bank results were mixed, with Goldman Sachs earning $17.01 per share against a $13.09 estimate, while JPMorgan missed but lifted net interest income guidance. Bank of America's $1.21 billion anti-money-laundering penalty pushed its shares down 2.3% after hours.
ASML's above-consensus fourth-quarter sales forecast, tied to AI chip demand, offered a counterpoint, and TSMC gained before its Q3 report. Overnight, Asian markets sought a modest rebound as China's trade figures topped forecasts. Johnson & Johnson dropped about 7% despite a beat, and Chevron reached a record high.
The chip selloff and mixed bank results may affect investors, pension funds, and savers through portfolio values and lending conditions. Bank of America's AML fine could prompt stricter compliance spending across finance, potentially influencing costs and services. ASML's AI demand outlook may shape semiconductor investment and hiring. Asian market recovery could ease regional sentiment, but volatility may persist for households exposed to equities.