U.S. stock indices edged lower on Tuesday, as the earnings season failed to ignite market strength. JPMorgan missed earnings expectations, while Citigroup and Wells Fargo saw sell-offs following their earnings reports. Chip stocks faced pressure during the session but recovered most losses by the close, though Micron and Applied Materials declined notably. Apple officially launched its HomeView smart home device, sending shares higher before settling with a modest gain. Tonight’s U.S. September CPI data will test market assumptions about a potential pause in rate hikes this month.

S&P Declines 0.02%, Big Seven: Five Up, Two Down

The S&P 500 fell 0.02% to close at 7,805.45; the Nasdaq dropped 0.15% to end at 27,204.38; the Dow Jones Industrial Average declined 0.35% to finish at 51,670.10. The Russell 2000 index slipped 0.40% to 2,783.37, while the VIX rose 0.39 points to 15.27, up approximately 2.62%.

Market sectors continued to diverge. Energy gained around 1.7%, communication services rose about 0.9%, utilities advanced roughly 0.6%, while materials and discretionary consumption posted gains. Healthcare dropped 1.33%, financials declined 0.41%, and industrials, consumer staples, and real estate were lower, with information technology nearly flat. Johnson & Johnson fell 5.73%, a significant drag on both the healthcare sector and the Dow.

Among the Big Seven, Meta rose 2.63%, Nvidia gained 0.97%, Microsoft increased 0.43%, Alphabet Class A climbed 0.30%, and Apple edged up 0.09%; Amazon dipped 0.37%, and Tesla declined 0.74%.

The Philadelphia Semiconductor Index closed down 0.2% at 12,208.8, marking its fifth consecutive daily decline and briefly dropping over 3% intraday. The Nasdaq Golden Dragon China Index ended slightly higher.

The U.S. Treasury bond market resumed trading, with long-end yields declining. At New York close, the 2-year yield stood at 4.791%, the 10-year at 5.216%, and the 30-year at 5.562%.

WTI crude oil December contract rose 0.43% to settle at $94.14 per barrel; Brent December contract fell 0.90% to close at $105.69 per barrel. COMEX gold futures declined 0.15% to $4,184.20 per troy ounce. Around 9:00 AM Beijing time this morning, Bitcoin hovered near $83,300, while Ethereum was around $2,500.

Banks Post Profit Growth, But Markets Stay Unimpressed

JPMorgan reported Q3 net profit of $15.3 billion, up 6% year-over-year, with EPS of $5.57, below analysts’ consensus of approximately $5.90. Management-level revenue reached around $50.9 billion, with equities trading income rising 49% year-over-year, but fixed-income trading revenue declined 4%.

Investment securities losses also weighed on results. JPMorgan recorded a pre-tax net loss of $658 million from investment securities; even excluding this item, adjusted EPS came in at $5.75, still short of expectations. The stock ultimately fell around 0.9%. The report reflects continued growth in trading activities, but widening disparities across business lines are becoming increasingly evident.

Goldman Sachs posted Q3 net revenue of $18.68 billion and net profit of $5.29 billion, with EPS of $17.01. Strong equity trading performance lifted shares, yet they still dipped marginally by around 0.2%. Wells Fargo’s net interest income fell short of expectations, dragging its stock down 3.1%; Citigroup dropped 5.6%.

On the first day of earnings season, year-over-year profit growth alone failed to sustain stock momentum. Investors remain focused on revenue mix, funding costs, and forward guidance—banks are the first to feel the pressure of elevated expectations.

AI Funding Starts Selecting Projects, Chip Stocks Remain Divergent

Micron declined around 3.62%, and Applied Materials dropped 6.69%. Ongoing technological progress at Yangtze Memory Technologies (YMTC) continues to fuel competitive concerns, pressuring memory and semiconductor equipment stocks. Meanwhile, Nvidia and AMD rebounded during the session, helping narrow losses for the Philadelphia Semiconductor Index.

Beyond competition, financing conditions for AI infrastructure have emerged as a new market concern. According to Bloomberg, JPMorgan and Goldman Sachs led a $5 billion loan facility for Volta, but only committed to underwriting $1.3 billion in term loans—leaving $3.7 billion in chip-related loans without underwriting guarantees.

The financing is intended for a Norwegian data center and GPU procurement, offering investors an approximate yield of 11%. While both banks continue organizing the deal, they are unwilling to bear the risk of unsold portions. Companies relying on debt to buy GPUs and lease compute capacity now face heightened scrutiny on whether financing can be secured and whether rental income can cover interest payments.

Apple Launches HomeView, $299 Device Targets Home Hub

Apple officially unveiled HomeView, featuring a 7-inch display and A18 chip, available in desktop and wall-mount versions, both priced at $299 in the U.S., with availability starting November 13.

The device integrates Siri AI, FaceTime, home monitoring, and smart home control, capable of recognizing up to six users and switching between personalized calendars, messages, and interfaces. Apple also updated Apple TV 4K and HomePod mini, and introduced new smart home accessories in partnership with LG Electronics and Schneider Electric.

Apple is extending Siri AI into everyday household scenarios. What matters next is whether voice interaction drives device sales and how frequently users engage with home services. The market response remained measured—Apple hit a session high of $348.15, its all-time peak, but finished the day at $341.27, up just 0.09%, with a market cap of approximately $4.98 trillion.

Williams on Rate Hikes, Treasuries Yield Dip

New York Fed President Williams stated that one more rate hike this year might still be appropriate, but based on current assessments, further hikes in 2027 may not be necessary. He emphasized that future data could alter this outlook.

Markets had previously feared prolonged tightening into next year; this commentary eased some of those concerns. Long-end Treasury yields retreated, but tonight’s inflation data could still recalibrate pricing for this month’s FOMC meeting.

Today’s Focus

This evening at 20:30, the U.S. releases September CPI. Market expectations point to headline CPI rising to around 3.6% year-over-year, with Reuters survey indicating 3.7%; core CPI is expected to rise approximately 2.5% YoY. Beyond energy's contribution to overall inflation, whether core service prices continue rising is critical to determining the Fed’s next move.

ASML, Bank of America, and Morgan Stanley report earnings. ASML’s key focus areas include new orders, demand for advanced-node equipment, and forward guidance. Bank of America and Morgan Stanley will be scrutinized for net interest income, trading activity, and wealth management performance.

Written by: ChaoXiang Research