US Opening Bell | Dow ekes out gains as tech slides; Semiconductor heavyweights tumble; Defensive consumer names shine

Market

October 15, U.S. stocks opened mixed: the Dow Jones added 0.46%, while the S&P 500 slipped 0.52% and the tech-heavy Nasdaq dropped 1.34%. Traders rotated into value and dividend plays after another round of soft chip demand data and cautious corporate guidance weighed on growth names.

Big chip names led the sell-off: Direxion Daily Semiconductors Bull 3x Shares falls 11.53%, Intel sinks 5.93% after a product delay, Advanced Micro Devices loses 5.72%, Micron Technology sheds 4.87%, Taiwan Semiconductor Manufacturing slips 4.46%, NVIDIA retreats 3.63% and Tesla Motors gives up 2.30% on weaker EV margin chatter. Offsetting the slide, Direxion Daily Semiconductors Bear 3x Shares jumps 11.43% and Apple edges up 0.94% on resilient iPhone demand.

Elsewhere, Cango Inc. rallies 5.31% on upbeat auto-financing volumes, Zai Lab Ltd climbs 2.64% after securing FDA priority review, Yum China Holdings, Inc. gains 2.48% on strong Golden Week sales, Li Auto advances 1.51% and H World Group adds 1.01%. On the downside, Silicon Motion Technology drops 6.95% after a bleak NAND outlook and VNET Group falls 5.57% as data-center pricing remains under pressure.

News

Marvell Technology cuts Q4 revenue outlook; shares slide 5.0%. Management cited slower cloud spending and inventory corrections. Analysts flagged risks to full-year margin targets.

Intel postpones launch of its Lunar Lake CPUs; stock down 5.9%. The chipmaker blamed manufacturing snags at its Ohio fab. Delay raises questions about regaining process leadership.

Taiwan Semiconductor Manufacturing posts 11% Y/Y drop in September sales; ADR falls 4.5%. Management pointed to weak smartphone and PC demand. Capex guidance may be trimmed at next week’s conference call.

NVIDIA faces preliminary EU antitrust probe into AI accelerator pricing; shares off 3.6%. Regulators are gathering data from hyperscale customers. The investigation could constrain future pricing power.

Apple raises quarterly dividend by 6%; stock up 0.9%. The boost follows record iPhone 18 preorder volumes. Share buyback authorization was also expanded by $70 billion.

Tesla Motors cuts U.S. Model Y prices by another $2,000; shares dip 2.3%. Move underscores intensifying EV competition. Margin forecasts for Q4 may be at risk.

Yum China Holdings, Inc. lifts full-year EPS guidance; ADR gains 2.5%. Strong Golden Week traffic and menu innovation drove a 12% same-store-sales jump. Management plans to accelerate 2027 unit openings.

Zai Lab Ltd wins FDA priority review for niraparib combo therapy; stock up 2.6%. Decision date is set for March and could unlock a large ovarian-cancer market. Analysts boosted price targets.

Direxion Daily Semiconductors Bear 3x Shares surges 11.4% as chip sector sells off. Traders flocked to bearish leverage after weak guidance from multiple fabs. Volume more than doubled the 30-day average.

Silicon Motion Technology terminates NAND supply deal with major handset OEM; ADR drops 7.0%. The cancellation adds to inventory overhang. Management warned of potential write-downs in Q1.