The Market Is in a Punishing Mood—Chip Stocks and Banks Beware

The stock market is in a mood. Nothing is good enough right now and everything has a pessimistic tint.

Positive signs are being ignored and bad signs are being punished. That’s not great ahead of key inflation data in the form of the Consumer Price Index this morning.

The Barron’s Daily

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ASML kicked off tech earnings season with a bang, signaling that the artificial-intelligence boom looks set to last for several years. Some customers have even expressed interest in placing orders for its chipmaking machines as far ahead as 2030.

Yet chip stocks were on track for a seventh consecutive fall —their worst run since May 2025 as the rotation away from tech continues.

Bank of America was dropping sharply after its $1.2 billion Treasury Department fine hit earnings. But the bank would have missed expectations regardless. BlackRock is the exception as the market rewarded the asset manager’s earnings.

Elon Musk had high praise for Micron Technology , which should be great for the memory-chip maker given Tesla and SpaceX’s chip ambitions. But the stock was down again, having dropped 12% in the past five days.

Even today’s winners look a bit ominous. The OG meme stock GameStop is set for a 16-month high—perhaps an ill-timed display of froth.

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📈 Here’s what’s happening in markets today:

• The Dow is set to rise ahead of the CPI inflation report.
• How today’s inflation data can deliver the Fed pause the market wants.
• Corning, Marvell, ASML, BlackRock, and more stocks that explain today’s market.
• BofA’s $1.2 billion in fines weighs on earnings.
• ASML earnings are a big deal for chip stocks.
• Why the chip stocks slump is deepening.
• GameStop stock hits highest level in 15 months.
• Micron keeps sliding but Musk says it’s making a ‘smart move.’
• HPE and Dell are downgraded. No ‘meaningful AI inflection yet.’
• Fastenal earnings show the manufacturing economy is doing just fine.
• AST SpaceMobile is the new battleground stock.

Created with Highcharts 9.0.1Source: FactSetNote: futures contractsAs of Oct. 14, 9 a.m. ET

Created with Highcharts 9.0.1Dow industrialsS&P 500Nasdaq Oct. 13Oct. 14-1.0-0.8-0.6-0.4-0.200.20.40.6%

🚨 Bank of America hit with $1.2 billion in fines

The $1.2 billion in regulatory fines imposed on Bank of America for violating rules designed to prevent financial crimes came on the eve of today’s earnings report. It’s the third-largest penalty in the Treasury Department’s history. The bank says it has already devoted substantial resources to fixing the issues. Read more here.

🏦 Bank earnings kick off with encouraging consumer picture

Third-quarter earnings from major U.S. lenders Wells Fargo, JPMorgan Chase, and Citigroup show borrowers were generally staying on top of their loan payments—though the banks noted that their portfolios skew toward clients with higher credit scores. Read here for more about what the banks are seeing about consumers.

🤖 Anthropic warns of more risks ahead of its IPO

The buildup to Anthropic’s IPO certainly has been unconventional. Expect more twists as the AI developer hosts a private investor day this week and continues to deliver warnings about its AI models while also trying to drum up support for its initial public offering. Read more here.

🎯 Former Berkshire manager Combs updates on latest moves

Former Berkshire Hathaway manager Todd Combs has made about $5 billion of investments in his new role at JP Morgan, he told a conference on Tuesday. Combs’ group, which is part of JP Morgan’s larger security and resiliency initiative, has made 10 investments averaging about $500 million each using the bank’s own capital.

🚑 UnitedHealth plows ahead with turnaround efforts

UnitedHealth Group continues to plow ahead on turnaround efforts after the stock plummeted last year. Spending on medical costs, a pain point for large insurers in recent years, continued to show signs of improvement. For more on its earnings report, read here.

🛢️ Trump’s diesel deal with Russia won’t lower prices much

The Trump administration’s plan to lift sanctions on Russian diesel to lower prices has gotten a major blowback, including from Republican lawmakers. Analysts say it will only shave a tiny amount off diesel prices, which have been near record highs. Read more about it here.

🍎 Apple’s smart home gadgets can’t push it past $5 trillion

A new range of smart home hardware wasn’t enough to help Apple’s finish at the $5 trillion market value threshold, closing just shy of it for the sixth time. The tech giant unveiled tabletop and wall-mounted versions of its home hub, which is powered by the Siri AI assistant and has a 7-inch screen and speaker. Read more about it here.

📰 Don’t miss out on our other newsletters

• Review & Preview: Not a Bang but a Whimper
• Energy Insider: How to Pick the Right Energy ETF
• View From the Circle: How to Find Stocks With Mismatched Earnings Expectations in a Bull Market

💸 Don’t miss the latest Moneyist column from MarketWatch

This week, MarketWatch managing editor for advice Quentin Fottrell responds to a reader’s observation about home ownership and renting in your 50s. Read the letter and his response here.

💬 Quote of the day:

The consumer is currently very healthy, primarily because of a healthy labor market. — Jeremy Barnum, JPMorgan chief financial officer

Other headlines moving markets:

• Chipotle unveils a giant takeout bag. There’s a bigger strategy behind it.
• Former Berkshire manager Combs has made $5B of investments at JP Morgan.
• AT&T stock catches a Wall Street downgrade.
• No Buffett, no problem? Berkshire stock marks best winning streak in 2 years.
• Microsoft stock reaches a record high. How it suddenly became an AI winner.
• SEC will require just one vote for decisions as Trump asserts more control over agencies.
• Garmin unveils luxury watch upgrades as it moves beyond navigation.
• Meta’s stock can still rise 35% after Muse boost. Here’s how.
• How Bumble went from $8 billion IPO to $1.3 billion buyout.
• Applied Materials stock could be flashing a sell signal. Here’s why.
• Marvell’s stock is on a bad run but Microsoft’s chips can revive it.
• Catching a turn in the market can pay off big. Here’s one way to do it.
• These bond funds can protect you from rising rates.
• Medicare is a maze. How to find help during enrollment season.

— Edited by Liz Moyer, Stacy Ozol, and Patrick O’Donnell

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