A sell-off in memory-chip stocks rippled through global markets after Chinese rival CXMT reported progress on more advanced technology, sending South Korea’s KOSPI down -5.5%. Wall Street edged lower as the third-quarter bank reporting season got underway, while European markets gave up early gains to close slightly lower.
Chip slide sours bank earnings season kick-off
US stocks drifted lower as a slide in semiconductor names and mixed bank earnings clouded the outlook. The Dow fell -0.4%, the S&P 500 eased -0.1%, and the NASDAQ slipped -0.3%. Chipmakers came under pressure after Chinese memory maker CXMT reported progress on a more efficient design, with Applied Materials (-8.4%), Micron Technology (-5.5%), and Lam Research (-4.8%) all lower. Broadcom CEO Hock Tan added to the unease on Monday, likening AI speculation to ‘a casino’. Social media giant Meta traded strongly again (+2.4%) following the rollout of its Muse Wonder AI model. Results from JPMorgan Chase (+0.3%), which missed profit expectations, Wells Fargo (-1.6%), and Citigroup (-3.8%) pointed to a resilient US consumer, while Goldman Sachs (+0.1%) posted a +29% lift in third-quarter profit. Johnson & Johnson (-6.0%) fell, while CDW (+4.5%) and International Flavors & Fragrances (+4.3%) led the gains. In rates markets, the US two-year yield edged up +2bp to 4.808%, while the 10-year yield eased -3bp to 5.219%.
Asian chip rout takes the shine off Europe
European markets gave up early gains to close slightly lower as tech stocks followed Asia’s chip sell-off. The STOXX 600, the UK’s FTSE 100, Germany’s DAX, and France’s CAC 40 all eased -0.1%. The IMF lifted its 2026 global growth forecast to 3.1% from 3.0% on the back of AI investment, while warning that wars and higher energy prices would weigh on progress. Tech names led the declines, with ASML (-4.2%), Nokia (-3.1%), and Infineon (-2.1%) all lower, and London Stock Exchange Group (-4.7%) also fell. LVMH (-0.1%) nudged lower after weaker-than-expected third-quarter sales, while Givaudan surged +9.4% on a better-than-expected update and WPP (+4.2%) and BP (+3.7%) gained.
Memory loss for Asian chipmaker
Asia-Pacific markets were mixed, with chip stocks hit hard after CXMT’s announcement. Japan’s Nikkei 225 fell -1.8% as it reopened after a public holiday. China’s Shanghai Composite edged up +0.1%, and Hong Kong’s Hang Seng rose +0.3%. South Korea’s KOSPI plunged -5.5%, dragged down by SK Hynix (-10.1%) and Samsung Electronics (-7.4%). Australia’s ASX 200 finished flat as gains in financials, led by Commonwealth Bank (+2.3%), offset falls in technology and resources. NEXTDC (-7.6%) slumped, and PLS Group (-8.6%) fell as lithium prices dropped, while Woodside (+1.9%) advanced. Across the Tasman, the NZX 50 fell -0.6%. Oceania Healthcare (+3.0%) and SkyCity (+2.3%) gained, while Chorus (-3.3%) and Auckland Airport (-2.8%) lagged.
Oil mixed, Gold down, Iron Ore flat
WTI Crude rose +0.4% to US$94.12/bbl while international benchmark Brent Crude dipped -0.9% to US$105.72/bbl, Gold slipped -0.4% to US$4,153.18, and Iron Ore held at US$90.83/MT.
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