Memory Chip Rout Drags Dow Down 180 Points as Banks Slide
(MENAFN) Wall Street ended Tuesday in the red as a sharp selloff in memory chipmakers hit technology shares and investors weighed a fresh batch of bank earnings.
The Dow Jones Industrial Average shed 180.45 points, or 0.35%, to finish at 51,670.10. It had been up more than 460 points earlier in the session before the gains evaporated. The S&P 500 slipped 0.02% to 7,805.45, and the Nasdaq composite lost 0.15% to close at 27,204.38.
Financials came under pressure as third-quarter earnings season picked up speed. JPMorgan Chase fell 0.9% after posting earnings and revenue that missed analyst forecasts, though the bank lifted its 2026 net interest income guidance. Wells Fargo sank 3% on mixed results. Goldman Sachs edged down 0.2% even though its revenue beat expectations, and UnitedHealth also lost 0.2% despite results that cleared analyst estimates.
The earnings backdrop remains strong. Analysts project profits at S&P 500 companies will grow by nearly 30% from a year earlier.
Memory chip selloff
The pressure on memory stocks followed a 5.5% plunge in South Korea’s Kospi index, which dropped to its lowest level since July 31. Traders pointed to valuation worries and intensifying competition from China.
Chinese chipmaker CXMT said this week that it plans to launch a more powerful chip by the end of the year.
Micron Technology fell more than 3%, Western Digital lost 1.6%, Seagate Technology dropped nearly 1% and SanDisk slid 0.3%. The Roundhill Memory ETF sank more than 3%.
Europe ends lower
European markets also closed in negative territory, hurt by semiconductor declines and rising natural gas prices. The Stoxx Europe 600 edged down 0.10% to 635.01, and the Euro Stoxx 50 fell 0.55% to 6,167.01.
Germany’s DAX 40 dipped 0.07% to 25,259.90, Britain’s FTSE 100 declined 0.06% to 10,650.33, and France’s CAC 40 shed 0.07% to 7,827.63.
The Dow Jones Industrial Average shed 180.45 points, or 0.35%, to finish at 51,670.10. It had been up more than 460 points earlier in the session before the gains evaporated. The S&P 500 slipped 0.02% to 7,805.45, and the Nasdaq composite lost 0.15% to close at 27,204.38.
Financials came under pressure as third-quarter earnings season picked up speed. JPMorgan Chase fell 0.9% after posting earnings and revenue that missed analyst forecasts, though the bank lifted its 2026 net interest income guidance. Wells Fargo sank 3% on mixed results. Goldman Sachs edged down 0.2% even though its revenue beat expectations, and UnitedHealth also lost 0.2% despite results that cleared analyst estimates.
The earnings backdrop remains strong. Analysts project profits at S&P 500 companies will grow by nearly 30% from a year earlier.
Memory chip selloff
The pressure on memory stocks followed a 5.5% plunge in South Korea’s Kospi index, which dropped to its lowest level since July 31. Traders pointed to valuation worries and intensifying competition from China.
Chinese chipmaker CXMT said this week that it plans to launch a more powerful chip by the end of the year.
Micron Technology fell more than 3%, Western Digital lost 1.6%, Seagate Technology dropped nearly 1% and SanDisk slid 0.3%. The Roundhill Memory ETF sank more than 3%.
Europe ends lower
European markets also closed in negative territory, hurt by semiconductor declines and rising natural gas prices. The Stoxx Europe 600 edged down 0.10% to 635.01, and the Euro Stoxx 50 fell 0.55% to 6,167.01.
Germany’s DAX 40 dipped 0.07% to 25,259.90, Britain’s FTSE 100 declined 0.06% to 10,650.33, and France’s CAC 40 shed 0.07% to 7,827.63.
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