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The S&P 500 and the Nasdaq inched lower on Tuesday as chip \u200bstocks came under selling pressure while investors parsed a mixed bag of quarterly results, including those from big \u200cUS banks.<\/strong><\/p>\n Healthcare was the biggest drag on the S&P 500, with Johnson & Johnson dropping 6.8% despite topping profit estimates.<\/p>\n Information technology stocks were flat in choppy trading. Some chip stocks sold off \u2014 with memory chipmaker Micron Technology \u00a0losing 4.6% and data storage companies Western Digital and Seagate slipping between 1% and 2%. The \u200bdecline was countered by Apple hitting a record high and Microsoft rising 0.9%.<\/p>\n Sentiment turned after Broadcom CEO Hock Tan \u200blikened some of the investment flow into the sector to \u201ccasino gambling\u201d on Monday. Reports of technological advances \u2060by China\u2019s CXMT, meanwhile, raised fears of rising competition.<\/p>\n AI technology weakness was creating unease in the market, said Peter Cardillo, chief \u200bmarket economist at Spartan Capital Securities.<\/p>\n A 2% rise in Meta propped up the communication services sector, limiting losses on the S&P \u200b500.<\/p>\n At 12:23 p.m. ET, the Dow Jones Industrial Average fell 173.96 points, or 0.34%, to 51,676.77, the S&P 500 lost 9.38 points, or 0.12%, to 7,798.04 and the Nasdaq Composite lost 38.24 points, or 0.14%, to 27,207.66.<\/p>\n Caterpillar and Honeywell were the biggest drags on the Dow.<\/p>\n Investors also read through a \u200bmixed bag of earnings from big banks. Citigroup \u00a0dipped 3.4% but Goldman Sachs rose about 0.5% after both topped profit estimates.<\/p>\n Wells Fargo fell \u200b1.5% after its net interest income missed estimates, while JPMorgan Chase swung between gains and losses following a rare profit miss.<\/p>\n The flattening yield curve \u2014 where longer-term \u200creturns rise \u2060faster than shorter-term, in a sign of rising credit risks \u2014 weighed on banks, Kathleen Brooks, research director at XTB, said. \u201cInvestors tend to price this in ahead of time, which is why US banks with large retail units like JPMorgan and Citi are struggling.\u201d<\/p>\n Hopes of a strong earnings season had been propping up the broader market amid geopolitical tension, surging bond yields and energy-price-led inflation worries.<\/p>\n \u201cUntil we \u200bget into the full swing of \u200bearnings, we\u2019ll still be subject \u2060to uneven market performance,\u201d Cardillo said.<\/p>\n Elevated crude prices have fueled inflation concerns and pushed bond yields to multi-year highs, but recent US economic data pointing to weaker job growth and lower-than-expected inflation \u200brise have curbed bets on imminent interest rate hikes.<\/p>\n This has brought the September reading of consumer \u200band producer prices \u2060and retail numbers, slated for this week, under greater scrutiny. Comments from regional Fed presidents Thomas Barkin and Susan Collins will be in focus later in the day.<\/p>\n Among others, Bumble jumped 56% to a year-high after the dating-app operator agreed to go private in a $1.3 billion \u2060deal.<\/p>\n Domino\u2019s Pizza \u200blost 3.8% after scaling back its full-year sales outlook.<\/p>\n Declining issues outnumbered advancers by \u200ba 1.22-to-1 ratio on the NYSE and by a 1.9-to-1 ratio on the Nasdaq.<\/p>\n The S&P 500 posted 14 new 52-week highs and 5 new lows while the \u200bNasdaq Composite recorded 33 new highs and 344 new lows.<\/p>\n<\/div>\n