Wall Street Closes Lower as Bank Earnings and AI Concerns Weigh

Wall Street stocks ended slightly lower on Tuesday, October 13, as mixed bank earnings and growing concerns over Chinese artificial intelligence competition pressured investor sentiment ahead of key U.S. inflation data.

The S&P 500 finished nearly unchanged at 7,806.26, while the Nasdaq Composite declined 0.2% to 27,204.38. The Dow Jones Industrial Average dropped 0.4% to 51,670.99, reversing an earlier gain of nearly 0.9%.

Technology stocks faced renewed selling pressure, particularly in the semiconductor sector. Micron Technology extended its losing streak to four sessions following reports of technological advances by China's ChangXin Memory Technologies. South Korea's technology-heavy KOSPI also plunged 5.5%.

Concerns about Chinese AI competition intensified after Intel CEO Lip-Bu Tan highlighted the significantly lower operating costs of Chinese AI models. Broadcom CEO Hock Tan separately questioned whether companies investing heavily in artificial intelligence could generate sufficient returns.

Investors also assessed quarterly earnings from major U.S. banks.

JPMorgan Chase reported weaker-than-expected quarterly profits but raised its 2026 net interest income forecast to approximately $106.2 billion. Its shares declined 0.8%.

Citigroup reported a 40% increase in net income to $5.25 billion, although its stock plunged 5.6%. Wells Fargo shares fell 3.1% despite a 5% increase in net interest income, while Goldman Sachs gained 0.2% after exceeding earnings expectations.

Healthcare stocks added pressure to the Dow. Johnson & Johnson dropped nearly 6% as disappointing medical device sales overshadowed stronger quarterly results. UnitedHealth slipped 0.2% despite raising its annual earnings guidance.

Meanwhile, U.S. Treasury yields showed mixed movements following the Columbus Day holiday. The benchmark 10-year yield declined to 5.209%, while the 30-year yield fell to 5.561%. The two-year yield remained near 4.789%.

Oil prices also fluctuated amid Middle East supply concerns. Brent crude declined 0.5% to $106.13 per barrel, while West Texas Intermediate rose 1% to $94.67.

Investors are now awaiting Wednesday's U.S. consumer price index report, which could influence expectations for Federal Reserve interest rate policy.

With stock valuations elevated, upcoming corporate earnings and inflation figures will be crucial in determining whether Wall Street can sustain its record-setting rally.