Stock Market Today: Dow Rises 198 Points as Bank Earnings Kick Off; Nasdaq Slips on Semiconductor Selloff

New York, Oct. 13, 2026 — U.S. stocks closed mixed on Tuesday, with the Dow Jones Industrial Average climbing nearly 200 points as major banks kicked off the third-quarter earnings season, while the Nasdaq Composite slipped under pressure from a persistent selloff in semiconductor and AI hardware stocks.

The Dow Jones Industrial Average rose 198.22 points, or 0.38%, to close at 51,853.17. The S&P 500 slipped 3.75 points, or 0.05%, to 7,807.79. The Nasdaq Composite fell 120.17 points, or 0.44%, to 27,246.00.

Why Did the Stock Market Close Mixed Today?

1. Bank earnings beat expectations. The third-quarter earnings season opened with strong results from major financial institutions. Citigroup reported its best Q3 revenue performance in a decade, with earnings of $2.85 per share — a 53% increase — beating Wall Street expectations. **Goldman Sachs** trounced estimates with earnings of $17.01 per share, while JPMorgan Chase and Wells Fargo also reported solid lending revenue despite elevated interest rates . JPMorgan initially dipped on weaker FICC results but rebounded after raising its full-year net interest income guidance.

2. Semiconductor and AI hardware stocks extended losses. The Philadelphia Semiconductor Index dropped as much as 3% intraday, with memory chipmakers hit hardest. SK Hynix plunged 10% and Samsung Electronics fell about 8% as South Korea’s Kospi Index — a key barometer of the AI trade — tumbled on concerns over Chinese competition. Reports that China’s CXMT achieved a technological breakthrough in DRAM production sparked fears of eroding pricing power for the established oligopoly of Samsung, SK Hynix, and Micron. Micron Technology fell 4.6%, while Western Digital and Seagate slipped between 1% and 2%. Optical infrastructure names were also hit: Ciena dropped 9.95%, Lumentum fell 9.78%, and Coherent lost 7.87%.

3. Healthcare stocks weighed on the S&P 500. Johnson & Johnson fell as much as 6.8% — its most intraday decline since April 2025 — despite topping profit estimates. Analysts pointed to weakness in the company’s MedTech unit as a source of investor disappointment .

Which Sectors and Stocks Led the Rally?

Communication services was among the strongest sectors, buoyed by Meta Platforms, which gained 3.38%. Healthcare saw defensive rotation, with Medtronic rising 3.77% and Zimmer Biomet gaining 3.37%.

Microsoft rose more than 1%, approaching its first record closing high in nearly a year. The stock has surged over 50% from its June trough, adding nearly $1.5 trillion to its market capitalization. Apple also hit a record high, countering some of the semiconductor weakness.

Notable individual movers included:

Bumble: Soared 56% to a year-high after the dating-app operator agreed to go private in a $1.3 billion deal.
Fermi: Jumped nearly 20% after securing a credit support agreement with AMD for Project Matador, a large-scale energy and infrastructure initiative.
UnitedHealth Group: Rose in pre-market trading after posting upbeat Q3 results, with earnings of $4.69 per share beating the $4.15 consensus.

On the downside:

Domino’s Pizza: Fell 3.8% after scaling back its full-year sales outlook, citing budget-conscious consumers eating out less .
Caterpillar and Honeywell were the biggest drags on the Dow.

What Are Treasury Yields Saying Today?

The 10-year Treasury yield fell about 5 basis points to 5.19%, retreating from the 24-year highs touched earlier this month as traders returned from the Columbus Day holiday . The 30-year yield declined to 5.562%, its lowest level since September 28 and its largest three-day decline since August. The 2-year yield slipped to 4.781%.

The bond market rally provided some relief, though the retreat came amid rising safe-haven demand and falling oil prices.

What Is the VIX (Fear Index) Saying?

The CBOE Volatility Index (VIX) rose approximately 1% to around 16.84, reflecting growing uncertainty ahead of major bank earnings and key inflation data later in the week.

What Economic Data Is Coming This Week?

Investors are closely watching two key inflation reports:

Consumer Price Index (CPI): Due Wednesday. Economists expect the 12-month consumer inflation rate to rise to 3.6% from 3.4%, with core CPI expected at 2.5%.
Producer Price Index (PPI): Due Thursday, with expectations of a 0.6% monthly increase.

What’s Next for Investors?

Attention remains on the third-quarter earnings season. According to FactSet, S&P 500 companies are projected to post 29.6% year-over-year earnings growth, marking the fourth consecutive quarter of growth exceeding 25%. Morgan Stanley strategist Mislav Matejka noted that while volatility has increased across multiple sectors, corporate earnings are expected to provide support for the market.

Meanwhile, Goldman Sachs raised its global equity rating to “overweight” for the next three months, citing strong earnings and improved asymmetric risk-reward entering earnings season. The firm recommends a “barbell strategy” — pairing global tech stocks with rate-sensitive, bond-proxy names that have seen valuations compress since summer.

The Fed’s next policy decision is scheduled for October 28. According to CME FedWatch, markets currently price roughly 88% odds of at least one rate hike by year-end, up from 78% a month ago.

Key Takeaways (Quick Summary)

Dow rose 198 points to 51,853.17; S&P 500 slipped 0.05%; Nasdaq fell 0.44%.
Bank earnings beat expectations: Citigroup +53% earnings, Goldman Sachs trounced estimates.
Semiconductor selloff continued: Micron -4.6%, SK Hynix -10%, Ciena -9.95%.
Johnson & Johnson fell 6.8% on MedTech weakness.
10-year Treasury yield fell to 5.19%, retreating from 24-year highs.
Bumble surged 56% on $1.3 billion take-private deal.
CPI due Wednesday: Expected to rise to 3.6% year-over-year.
Goldman Sachs upgraded global equities to “overweight.”