S&P 500 falls from record, Nasdaq slides as Nvidia leads chip stocks lower
Stocks fell Tuesday, taking a breather from the rally that lifted them to record highs, as traders sifted through the latest corporate earnings reports.
The Dow Jones Industrial Average lost 149 points, or 0.4%. The S&P 500 slipped 0.5%, and the Nasdaq Composite fell 1%.
Nvidia, Broadcom and other chip stocks hit their lows of the session after Dutch semiconductor-equipment maker ASML tumbled 11%. The company’s CEO warned of “cautiousness” among customers and said a “recovery is more gradual than previously expected.” UnitedHealth was down 7% after the company trimmed its full-year earnings outlook. Bank of America ticked 3% higher on better-than-expected results.
So far, about 40 S&P 500 companies have reported third-quarter results. Of those, 80% have beaten analyst expectations, per FactSet.
Wall Street is coming off a winning session that propelled the S&P 500 and Dow to all-time highs. Notably, the Dow added more than 200 points to finish above the 43,000 mark for the first time.
Despite Tuesday’s declines, the three major averages are higher on the month and seem on track to overcome a historically volatile season. But Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, says that stocks aren’t out of the woods just yet.
Source: CNBC
