Stocks Turn Lower as Chipmakers Retreat

Market Overview - The ongoing US government shutdown is impacting market sentiment and delaying key economic reports, with estimates suggesting that 640,000 federal workers may be furloughed, potentially raising the unemployment rate to 4.7% [2] - The S&P 500 Index is down -0.28%, the Dow Jones Industrials Index is down -0.16%, and the Nasdaq 100 Index is down -0.40% [5] - Market focus includes developments regarding tariffs, trade, and the US government shutdown, with upcoming releases of FOMC meeting minutes and consumer sentiment index [6] Corporate Earnings and Stock Performance - More than 22% of S&P 500 companies have provided guidance for Q3 earnings that are expected to exceed analysts' expectations, the highest in a year, although Q3 profits are projected to rise by only +7.2%, the smallest increase in two years [7] - Advanced Micro Devices (AMD) is up more than +5%, following a +23% surge, after being upgraded by Jeffries due to a deal with OpenAI [17] - Ford Motor is down more than -7% due to reported disruptions from a fire at an aluminum plant [14] Sector Movements - Chipmakers have retreated after an initial surge, impacting broader market performance, with notable declines in companies like KLA Corp, Lam Research, and NXP Semiconductors [13] - Homebuilder stocks are under pressure after Evercore ISI downgraded the sector, with major companies like DR Horton and Lennar down more than -2% [15] - Interest rates are influenced by hawkish comments from Kansas City Fed President Jeff Schmid, indicating a need to combat high inflation, which may affect T-note prices [9][10] International Market Developments - The Euro Stoxx 50 is up +0.02%, while Japan's Nikkei Stock 225 closed up +0.01% at a new record high [8] - European government bond yields are rising, with the 10-year German bund yield up +0.6 bp [11]