US stock futures traded mixed before the opening bell on Tuesday, October 13 ahead of major corporate earnings, while chip selloff continues.
Dow Jones futures gained 0.52% to 52,383, S&P 500 traded flat at 7,858.5, while Nasdaq slid 0.46% to 30,755.5 by 2:52 pm IST.
Wall Street was mixed in the previous session, with Dow ending more than 195 points higher, while slip in memory stocks pushed the Nasdaq Composite and S&P 500 in negative.
Chip selloff
Chip stocks continued to be in pressure today, adding pressure on global stocks, with memory giants Samsung Electronics Co. and SK Hynix Inc. pulled Asia's benchmark index to its lowest level since August. The artificial-intelligence trade is under fire as traders reevaluate whether the rapid investment in the technology would be sustainable under amid safety concerns and indications of funding strain. The selloff in Asia's chipmakers intensified on Tuesday after a report said that Chinese rival CXMT Corp. has made progress on a memory development that Samsung and SK Hynix are also working on.
Bank earnings ahead
Major banks such as JPMorgan, Goldman Sachs , Citigroup and Wells Fargo are expected to release their results before the opening bell Tuesday. These financial reports could set the tone for an earnings season. S&P 500 profit are expected to grow around 30% year-on-year this quarter, a Bloompberg report said citing FactSet.
“Three groups will likely shape how investors read the season: 1) Banks (consumer and business health), 2) Big Tech (AI monetization), and 3) Energy (the durability of oil-driven profits),” the report quited Anthony Saglimbene, chief market strategist at Ameriprise.
READ | Asian Markets Today: Kospi Sheds 400 Points, Nikkei Down Nearly 3% On Chip Rout; SK Hynix Falls 9%
Treasury yields slip
After hitting multiyear highs recently, Treasury yields inched lower as investors look ahead to key economic data releases this week, including the US inflation data. The 10-year Treasury yield, the main benchmark for mortgages, auto loans, and credit card debt dropped over 5 basis points to 5.19%, while the yield on 30-year note, which tend to move on geopolitical events slipped 4 basis points at 5.55%.
Asia Market tumbles
Following chip rout, South Korea's Kospi dropped 6.5% or nearly 400 points to 6,001.81, Japanese index Nikkei's return after a holiday on a negative footing as it slumped nearly 3% to a low of 5,988.22, Australia's S&P/ASX 200 was down 0.38% to 8,749.40, Hong Kong's Hang Seng Exchange opened 0.8% lower at 24,072.28.
Semiconductor giants SK Hynix and Samsung Electronics Co. Ltd. declined 9% and 8% to 1,464,000 South Korean Won and 231,750 South Korean Won, respectively. SK Hynix's Chinese rival CXMT earlier announced that it made progress on a memory-chip design capable of storing more data.
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