Mixed US Open as Chip Selloff and Bank Earnings Collide While Indian Markets Surge 1.6%

US equity markets opened Tuesday in choppy, directionless fashion as a sharp selloff in semiconductor stocks offset strength in healthcare and financial names. The Nasdaq slid roughly 0.73% while the Dow edged higher by about 0.58%, with the S&P 500 oscillating near the flatline. Memory chip makers bore the brunt of the pressure following reports of advances by Chinese rival CXMT, sending Micron down more than 3%, Western Digital nearly 6%, and SanDisk approximately 5% in pre-market trading. The VIX held above the 14.75 to 15.20 support band, with 16.10 to 16.40 as the next resistance level if volatility escalates.

Bank earnings delivered a mixed picture to kick off the reporting season, with JPMorgan Chase, Goldman Sachs, and Wells Fargo all reporting against consensus targets of $5.94, $13.05, and $1.85 in EPS respectively. Johnson and Johnson tumbled roughly 7% despite beating adjusted earnings estimates, while UnitedHealth Group jumped around 5% after raising its profit outlook and beating revenue expectations of $111.47 billion for the quarter. Apple shares hit a record high, rising 1.4%, and Meta Platforms gained approximately 3% at midday.

ETF flow data illustrated the day's rotational character. The iShares 10-20 Year Treasury Bond ETF drew the largest fixed-income inflow at $645.8 million, a 6.0% weekly increase, while the Financial Select Sector SPDR and Health Care Select Sector SPDR attracted $478.9 million and $378.4 million respectively. On the outflow side, the iShares MSCI USA Momentum Factor ETF shed $220.6 million, the iShares Russell 2000 Growth ETF lost $176.9 million, and the iShares Russell 2000 Value ETF dropped $158.3 million, pointing to rotation away from small-cap and momentum strategies.

In India, markets staged a powerful rally, with the BSE Sensex surging 1,109 points or 1.54% to 73,033.78 and the Nifty 50 jumping 358.60 points or 1.60% to 22,721.95, the index's largest single-day point gain in six months. The Nifty IT index led sectoral gains with a 5.22% surge, its strongest single-day move since May 2025, driven by HCL Technologies shares climbing over 8% on strong Q2 results, their biggest daily gain since September 2020. Finance Minister Nirmala Sitharaman's remarks indicating openness to hearing stakeholder views on long-term capital gains and securities transaction tax reforms also lifted sentiment, with India VIX dropping around 8%. Institutional flows on Indian exchanges were net positive at roughly 1,134 crore rupees, as domestic institutional investors bought a net 2,439 crore rupees while foreign institutional investors sold a net 1,305 crore rupees.