Stock market today: Why are S&P 500 futures falling despite strong bank earnings?
S&P 500 futures fell on Tuesday: Futures linked to the S&P 500 slipped as investors assessed quarterly earnings from major US banks and tracked losses in chip stocks. Dow futures remained slightly higher, while Nasdaq futures came under greater pressure.
Quarterly results from major American banks are drawing attention as investors look for signs of how businesses are performing amid economic and geopolitical uncertainty.
S&P 500 futures today: Latest market update
At 6:54 am ET, S&P 500 E-mini futures fell 10 points, or 0.13%. Dow E-mini futures rose 92 points, or 0.18%, while Nasdaq 100 E-mini futures dropped 182.25 points, or 0.59%, according to Reuters.
JPMorgan Chase posted an increase in third-quarter profit, supported by growth in investment banking and trading. However, its shares fell 3.4% in premarket trading.
Wells Fargo reported higher profit for the third quarter, helped by growth in its loan book and increased interest income. Despite the improvement, its shares fell 1% in premarket trading.
Johnson & Johnson shares dropped 2.7% in premarket trading even though the healthcare company reported third-quarter profit slightly above analysts’ expectations.
Dow futures remained in positive territory after giving up some earlier gains. UnitedHealth shares rose 2% after the health insurer raised its profit forecast for 2026, citing tighter control over medical spending and improved profit margins in some business units, according to Reuters.
Also read: US Treasury yields today: 10-year yield falls as oil prices drop ahead of inflation data
S&P 500 earnings forecast points to strong growth
Expectations of solid corporate earnings have recently supported the broader US stock market. However, investors remain concerned about geopolitical tensions, rising government bond yields and inflation.
Earnings for companies in the S&P 500 are expected to increase by 30.6% in the July-September quarter. Technology and energy companies are expected to record the strongest gains, according to data compiled by LSEG and cited by Reuters.
Chip stocks fall as China competition worries grow
US semiconductor stocks fell again after a selloff on Monday. Analysts pointed to reports about technological advances made by China’s ChangXin Memory Technologies (CXMT) as a factor weighing on the sector.
Nic Puckrin, a cross-asset analyst and founder of Coin Bureau, said CXMT’s technological progress could create direct competition for South Korean chipmakers Samsung and SK Hynix. He noted that their large profits have been supported by both limited chip supply and strong demand. Puckrin added that US chipmakers could also face pressure from these developments, as cited by Reuters.
South Korea’s benchmark KOSPI index closed down 5.5% after falling more than 7% during the session. The sharp decline reflected pressure on technology stocks amid concerns about competition in the semiconductor industry, according to Reuters.
Nvidia shares fell 1% in premarket trading. AMD shares slipped 1.5%, while Marvell Technology lost 2.6%.
Shares of memory chipmaker Micron Technology dropped 3.2% as selling pressure continued across the semiconductor sector.
Shares of Western Digital, Seagate and Sandisk fell between 3.2% and 4.8%. Their losses added to the weakness across technology-related stocks, according to Reuters.
Oil prices and Treasury yields remain in focus
Oil prices declined as traders considered the risk to supplies from attacks on Saudi Arabia and the possibility of additional diesel supplies from Russia.
Crude oil prices had surged because of the US-Iran conflict. Higher energy costs raised concerns about worldwide inflation, pushed government bond yields to their highest levels in decades and increased pressure on central banks to maintain tighter monetary policies, according to Reuters.
Waller attributed the increase in yields to stronger economic growth and large-scale investment in artificial intelligence rather than rising inflation expectations.
US inflation data and Fed rate decision ahead
Recent US economic data showed that inflation increased less than expected and job growth weakened. These figures reduced bets on an imminent Federal Reserve interest rate hike. Traders widely expected the Fed to keep interest rates unchanged this month, according to CME FedWatch data cited by Reuters.
Investors are closely watching the September consumer price index (CPI), producer price index (PPI) and retail sales figures due later this week. These reports could provide fresh clues about inflation, consumer spending and the Federal Reserve’s next interest rate decision.
Investors are weighing expectations of strong corporate profits against falling chip stocks, geopolitical risks and uncertainty over inflation and interest rates. The performance of major companies and the upcoming US economic reports could influence the direction of the broader stock market in the coming sessions.