Nasdaq Declines Amid Chip Sector Pressure and Bank Profit Shortfalls

The Nasdaq closed lower on October 13 as chip stocks extended recent losses. Broadcom CEO Hock Tan described sector investment flows as 'casino gambling' on October 12, contributing to the PHLX chip index's fifth consecutive decline of 0.23%. Chinese memory chip firm CXMT's technological advances heightened competitive concerns.

Micron Technology dropped 3.6% and Applied Materials fell nearly 7% in the session. Citigroup and Goldman Sachs both underperformed after exceeding profit estimates, with Citigroup declining 5.6% and Goldman Sachs losing 0.2%. Wells Fargo dropped 3.1% due to net interest income shortfalls, while JPMorgan Chase fell 0.9% after a rare profit miss.