Dow Jones closes down more than 300 points and Nasdaq falls as Nvidia shares fall

CNBC_ Indexes went down US stocks during Tuesday’s trading session, catching its breath from the rise it reached in the previous session, amid traders’ assessment of the latest corporate earnings reports.

The Dow lost about 325 points, or 0.8%. The S&P 500 index also fell 0.8%, while the Nasdaq Composite index fell 1%.

Nvidia shares fell during trading on Tuesday by about 5% after reaching the highest closing level during the session on Monday, as the company’s market value exceeds $3.4 trillion, with updates from the maker’s main clients chip in terms of their planned spending on artificial intelligence infrastructure.

ASML also fell 16% as chip manufacturers declined. The CEO of the company indicated more caution among investors, and said, “The recovery is more gradual than previously expected.” AMD shares fell 5.2%.

The VanEck Semiconductor ETF (SMH) fell 5.4% in its worst day since September 3.

Additionally, UnitedHealth fell 8.1% after the company cut its full-year earnings forecast on the Dow Jones 30-stock index.

UnitedHealth fell 9% after the company cut its full-year earnings forecast, while Bank of America rose 2% as it reported better-than-expected results.

Goldman Sachs Bank reports higher-than-expected third-quarter profits and revenue:

Earnings per share: $8.4 above expectations of $6.89

Revenue: $12.7 billion better than estimates of $11.8 billion pic.twitter.com/V50jzbjY96

So far, about 40 S&P 500 companies have reported their third quarter results. And 80% of those companies, their results exceeded analysts’ expectations, according to FactSet.

Wall Street came off a profitable session on Monday that pushed the S&P 500 and Dow Jones to all-time highs.

The Dow Jones index closed the session above 43 thousand points for the first time.

Despite Tuesday’s decline, all three major indexes were higher on the month and appear to be on track for a historically volatile season.

But US Bank Wealth Management chief equity strategist Terry Sandvin says stocks aren’t out of the woods yet.

“It’s difficult to improve from the current situation … to some extent, we may be on the verge of a small recession,” he told CNBC.

However, a strong earnings season in the third quarter and a strong fundamental backdrop could support stocks at their current levels before the end of the year. Sandvin’s year-end target for the index is 6,000 points, which equates to an increase of around 3%.

He said: “For equity investors, these are the best of times and the worst of times. The performance of US stocks so far has been excellent and broad. On the other hand, a wall of concerns is emerging as valuations rise, electoral nuances remain, global tensions increase, etc.

He continued: “In the short term, there is a lot to see about the stock market. “If we look to the end of the year and beyond, we expect volatility to be the rule rather than the exception.”

Wall Street indices close the session lower

The Dow Jones industrial average fell 324.80 points, or 0.75%, in late trading on Tuesday to 42,740.42 points.

The S&P 500 index closed trading down 44.59 points, or 0.76%, to 5,815.26 points.

The all-time high Nasdaq Composite Index fell by about 187.10 points, or 1.01%, to 18,315.59 points.

Citigroup shares are under pressure despite the earnings beat

Citigroup’s third-quarter results may have beaten Wall Street expectations, but the results weren’t strong enough to boost the stock.

The bank’s shares fell more than 3% in trading on Tuesday after initially rising before the opening bell.

Citigroup’s net income fell year over year to $3.2 billion from $3.5 billion a year earlier. The decrease was partly due to higher credit costs, including an increase in the provision for loan losses.

Asked about credit card losses, Mark Mason, Citigroup’s chief financial officer, said on a call Tuesday that the bank is seeing a “plateau” in loan delinquencies among retail clients and is “very conservative ” in that area.

Shares are falling LVMH After a weak earnings report

Shares of LVMH traded about 7% on Tuesday to their lowest level since October 2022 after the luxury goods giant posted disappointing quarterly results.

LVMH reported revenue of €19.8 billion in the previous quarter, while analysts were expecting €19.87 billion, according to StreetAccount.

Apple Records an all-time high

Apple shares rose to an all-time high on Tuesday.

The iPhone maker hit a high of $237.49 before trading at around $234 per share.

Shares rose more than 1% in Tuesday’s session on Wall Street.

The company’s shares reached an all-time high of $237.23 on July 15.

shares ASML Discount of more than 16% after release of business results

Shares of the semiconductor equipment manufacturer ASML fell more than 16% in the session on Tuesday, October 15, on Wall Street, after the results of the Dutch company were released one day earlier than expected.

ASML said it expects net sales in 2025 to be between 30 billion euros ($32.72 billion) and 35 billion euros, at the lower half of the range it provided earlier.

The company said net bookings for the third quarter of the year were 2.6 billion euros ($2.83 billion) – well below the LSEG consensus estimate of 5.6 billion euros.

Wall Street index performance was mixed at the opening of the session

The Dow Jones industrial average fell 148.47 points, or 0.34%, to 42,916.75 points.

The S&P 500 index opened the session up 5.04 points, or 0.09%, to 5,864.89 points.

American indices are mixed at the beginning of the trading session on Tuesday, with Dow Jones trading at levels below 43 thousand points.

The Nasdaq Composite Index rose 32.39 points, or 0.18%, to 18,535.07 points.

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