Wall Street's Rollercoaster: Tech Slump Meets Banking Boost

Wall Street faced a downturn led by a decline in semiconductor and oil stocks, with Nvidia's drop due to potential export curbs. Conversely, major banks reported strong earnings, propelling their stocks higher. The tech sector's inflated stock valuations remain under scrutiny amidst upcoming economic data releases and Federal Reserve actions.

Wall Street encountered a downturn with a notable slump in semiconductor and oil stocks overshadowing robust quarterly results from major banks. Nvidia's shares tumbled 5.6% as news broke of possible AI-chip export restrictions by the Biden administration.

Chip stocks were further hit after an error led to the early publication of results from ASML Holdings, which painted a grim picture for 2025 sales. Energy stocks fell 2.2% owing to declining crude prices amid a weaker demand outlook.

Despite the declines in tech, banks reported significant gains, with Bank of America and Charles Schwab leading the positive momentum. As record highs on Monday were overshadowed by uncertainties, investors remain cautious, focusing on upcoming economic data and potential Federal Reserve interest rate adjustments.

(With inputs from agencies.)