Micron tumbles 3.88%; Philadelphia Semiconductor Index drops 2.67%
Apple, Microsoft, and Meta post gains; market eyes bank earnings and inflation prints amid rising oil prices
New York stocks closed mixed on Tuesday (local time) as weakness in the semiconductor sector tempered investor sentiment. While a broad retreat in chipmakers, including Micron and Nvidia, weighed on the Nasdaq, resilience in large-cap tech stalwarts like Apple and Microsoft helped diversify market performance. Broader gains were further challenged by rising international oil prices, with investors proceeding cautiously ahead of key earnings reports from major banks and impending inflation data.
The Dow Jones Industrial Average rose 195.60 points (0.38%) to finish at 51,850.55. The S&P 500 slipped 4.30 points (0.06%) to 7,807.24, and the Nasdaq Composite fell 120.27 points (0.44%) to 27,245.90.
The semiconductor sector faced a steeper decline than the broader indices. The Philadelphia Semiconductor Index fell 335.63 points (2.67%) to 12,236.79. Micron led the slide with a 3.88% drop, followed by Intel (-3.20%) and AMD (-2.28%), while Nvidia and Broadcom fell 1.29% and 1.88%, respectively. Semiconductor equipment manufacturers Lam Research and KLA also saw significant losses, down 2.91% and 2.79%.
Memory chip stocks were further rattled by mounting concerns over competition from Chinese manufacturers. Investor's Business Daily (IBD) reported that reports of technical advancements in next-generation DRAM by China’s ChangXin Memory Technologies (CXMT) weighed on Micron. Fears of intensifying market saturation intensified as CXMT outlined plans to launch competing server-memory products within the year. Storage-related stocks also faced pressure, with SanDisk falling 5.97%, Seagate 3.80%, and Western Digital 2.60%.
Despite the tech-sector drag, several large-cap leaders bucked the trend. Apple gained 1.29%, while Microsoft rose 1.14%. Microsoft made headlines by unveiling its proprietary AI chip, "Maia 300," and outlining plans to scale its Maia infrastructure to gigawatt-scale deployments by 2027.
Meta surged 3.38% following the announcement of its new AI models, "Muse Wonder" and "Muse Wonder Full." Alphabet also climbed 0.30%. Conversely, Amazon and Tesla struggled, falling 1.10% and 1.22%, respectively, highlighting the divergence in performance among "Magnificent Seven" components.
Energy and consumer staples stocks served as a pillar of strength. ExxonMobil rose 1.90%, Chevron 1.43%, and ConocoPhillips 2.58%. In the staples sector, Walmart and Costco gained 1.55% and 1.32%, while Coca-Cola rose 1.98%. This rotation underscored a distinct sectoral bifurcation, with defensive and energy plays outperforming the growth-heavy semiconductor segment.
The rebound in global oil prices acted as a tailwind for the energy sector. Geopolitical anxieties intensified after an attack on Riyadh International Airport over the weekend, sparking concerns over stability in the Middle East. West Texas Intermediate (WTI) crude futures rose 2.06% to settle at $93.74 per barrel, while Brent crude futures climbed 1.84% to $106.65. The U.S. Treasury market remained closed in observance of Columbus Day.
Markets are now bracing for a flurry of corporate earnings and economic indicators. JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo are scheduled to report third-quarter earnings on Wednesday. Subsequently, the U.S. Consumer Price Index (CPI) for September is due on Thursday, followed by the Producer Price Index (PPI) on Friday. Corporate earnings guidance and the trajectory of inflation are expected to be the primary catalysts for market volatility throughout the remainder of the week.
