Why the bot decided this
A 5% plunge in South Korea’s KOSPI triggered a chip-stock selloff, with Micron and Applied Materials falling. J&J dropped 6% despite raising guidance.
The article
Chip Stocks Slide as South Korea's KOSPI Plunges, J&J Sinks 6%: Stock Market Today U.S. stocks slipped by midday Tuesday as a chip-sector rout — sparked by a 5% plunge in South Korea’s KOSPI — offset gains in banks and energy, with the S&P 500 hovering just below 7,800 and the Nasdaq 100 leading declines. Chip stocks were hit after China’s CXMT announced progress on a more efficient memory-cell design, sending Samsung Electronics Co. Ltd. (OTC:SSNLF) and SK Hynix Inc. (NASDAQ:SKHY) down roughly 8% each in Seoul. That spilled into U.S. semiconductors, where Micron Technology Inc. (NASDAQ:MU) dropped 4.9% and Applied Materials Inc. (NASDAQ:AMAT) tumbled 6.5%. The S&P 500 slipped 0.2% to 7,795. The Nasdaq 100 fell 0.5% to 30,511, with chip weakness weighing on it. The Russell 2000 lost 0.6% to 2,777. Big-Bank Earnings Support Dow JPMorgan Chase & Co. (NYSE:JPM) rose about 1% even after its profit of $15.3 billion, or $5.57 per share, missed the $5.90 estimate, while Goldman Sachs Group Inc. (NYSE:GS) gained after earnings of $17.01 per share crushed the $13.02 consensus. Wells Fargo & Co. (NYSE:WFC) fell 1.5% even as earnings of $1.87 per share topped the $1.84 consensus, because revenue of $21.87 billion missed the $22.31 billion forecast. Elsewhere among blue-chip stocks, Johnson & Johnson (NYSE:JNJ) sank 6.2% despite a profit beat and a raised full-year outlook, weighed by a MedTech miss and a one-time talc litigation charge. Caterpillar Inc. (NYSE:CAT) fell 5.0% in the industrials pullback. In energy, WTI crude traded near $93.95 per barrel, up 0.2%, while Brent edged 0.9% lower to $105.72. Gasoline has now tied 2022’s record for most days above $4 per gallon in a single year. The 10-year Treasury yield held near 5.22%, down 2 basis points, a level that continues to cap valuations in rate-sensitive corners of the market. Odds of another quarter-point hike at the Oct. 27-28 FOMC meeting stood near 26% as of Oct. 7, according to CME FedWatch. Tuesday’s Performance In Major US Indices IndexLast% ChangeMTDYTD S&P 5007,794.98-0.16%+1.87%+13.87% Dow Jones51,696.61-0.30%+1.55%+7.56% Nasdaq 10030,510.53-0.50%+0.34%+20.83% Russell 20002,777.31-0.61%-0.70%+11.90% Updated by 12:26 PM ET According to the Benzinga Pro platform: The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.1%. The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) fell 0.3%. The Invesco QQQ Trust (NASDAQ:QQQ) declined 0.5%. The iShares Russell 2000 ETF (NYSE:IWM) lost 0.7%. Chip Rout Hits Tech, Energy And Communications Hold Firm Communication Services led the S&P 500, with the Communication Services Select Sector SPDR Fund (NYSE:XLC) up 1.1%, followed by energy, as the Energy Select Sector SPDR Fund (NYSE:XLE) gained 1.2%. On the Downside The Industrials Select Sector SPDR Fund (NYSE:XLI) fell 1.2% and the Health Care Select Sector SPDR Fund (NYSE:XLV) slid 1.2%, the latter dragged by Johnson & Johnson (NYSE:JNJ). The Technology Select Sector SPDR Fund (NYSE:XLK) lost 0.5% and the Real Estate Select Sector SPDR Fund (NYSE:XLRE) dropped 0.6%, while the Financial Select Sector SPDR Fund (NYSE:XLF) edged 0.2% lower. Among industry funds, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) rose 2.0% on firm crude, while the VanEck Semiconductor ETF (NASDAQ:SMH) fell 1.5% and the VanEck Gold Miners ETF (NYSE:GDX) slid 2.0% alongside softer gold. The SPDR S&P Regional Banking ETF (NYSE:KRE) lost 1.0%. Flex Ltd. (NASDAQ:FLEX) fell 6.8% after announcing plans to spin off its Cloud and Power Infrastructure unit as Axiom Solutions International, in addition to the broader AI-hardware pullback. AST SpaceMobile Inc. (NASDAQ:ASTS) sank 8.8% after Piper Sandler cut the stock to Neutral, citing the threat from SpaceX’s direct-to-cell effort. On the Upside Fermi Inc. (NASDAQ:FRMI) soared 17.4% after announcing an AMD credit-support agreement for its Project Matador AI-infrastructure site in Texas, with Advanced Micro Devices Inc. (NASDAQ:AMD) named as the partner. At last check, HF Sinclair Corp. (NYSE:DINO) was up 4.2%; Valero Energy Corp. (NYSE:VLO) up 3.2%; Phillips 66 (NYSE:PSX) up 2.9%; and Marathon Petroleum Corp. (NYSE:MPC) up 2.8%. Tuesday’s Russell 1000 Top Gainers Name% change Fermi Inc.+17.38% HF Sinclair Corporation+4.19% Cognizant Technology Solutions Corporation (NASDAQ:CTSH)+4.15% The Trade Desk, Inc. (NASDAQ:TTD) +3.56% Darling Ingredients Inc. (NYSE:DAR) +3.56% Tuesday’s Russell 1000 Top Losers Name% change AST SpaceMobile, Inc.-8.81% DPC Holdings PLC (NYSE:DPC)-7.91% Summit Therapeutics Inc. (NASDAQ:SMMT) -7.23% Flex Ltd.-6.84% Quantinuum Inc. (NASDAQ:QNT) -6.68% Image: Shutterstock