[New York Stocks] Close Mixed... Nasdaq Falls as Semiconductor Shares Weaken

Oil Prices Close Higher Across the Board

U.S. stocks closed mixed on Oct. 12 (local time) as semiconductor shares came under selling pressure. Investors largely stayed on the sidelines ahead of earnings reports from major banks and the September Consumer Price Index (CPI) release later this week.

The Dow Jones Industrial Average rose 195.60 points, or 0.38%, from the previous session to close at 51,850.55. The S&P 500, which is weighted toward large-cap stocks, fell 4.30 points, or 0.06%, to 7,807.24, while the Nasdaq Composite, which is weighted toward technology stocks, lost 120.26 points, or 0.44%, to finish at 27,245.90.

The New York Stock Exchange. New York, U.S. = Correspondent Hwang Yunju

Semiconductor shares fell on the day, leading losses among technology stocks. The Philadelphia Semiconductor Index dropped to its lowest level in three weeks. Investors are watching to see whether earnings from the large technology companies and semiconductor firms that have driven recent stock gains can support expectations for increased investment in artificial intelligence (AI).

The Dow, by contrast, rose. Microsoft (MS) gained on its plan to deploy its own AI chips at scale in data centers, while energy stocks also advanced, buoyed by rising international oil prices.

Brent crude futures for December delivery rose 1.84% from the previous session to settle at $106.65 a barrel on the ICE Futures Exchange. West Texas Intermediate (WTI) crude futures for November delivery gained 2.06% to close at $93.74 a barrel on the New York Mercantile Exchange.

Markets are focused on the third-quarter earnings season, which is underway this week. Goldman Sachs, JPMorgan Chase, Citigroup and Wells Fargo will report earnings on Oct. 13, while Bank of America and Morgan Stanley will release their results on Oct. 14. Bloomberg Intelligence estimates that third-quarter earnings for S&P 500 companies will rise 25% from a year earlier.

The September CPI is considered a key inflation indicator for the Federal Reserve (Fed) to review ahead of the Federal Open Market Committee (FOMC) meeting on Oct. 28. Jason Pride and Michael Reynolds of Glenmede said the Fed may take a cautious approach to its next rate hike if inflation does not rise significantly more than expected.

Beth Hammack, president of the Federal Reserve Bank of Cleveland, said the Fed could make smaller, more frequent rate adjustments to stabilize inflation expectations, but she did not support a rate hike this month.

Bret Kenwell, eToro's U.S. investment analyst, said strong earnings growth had helped stocks hold up despite high interest rates and inflation. "If strong earnings continue, the bull market could last through the end of the year. But if results fall short of expectations, it could lead to a broad market correction," he said.

This content was produced with the assistance of AI translation services.