U.S. stocks end lower amid chip selloff

U.S. stocks closed lower on Tuesday as a global chip selloff outweighed mixed bank earnings.

The Dow Jones Industrial Average fell 180.45 points, or 0.35 percent, to 51,670.1. The S and P 500 sank 1.79 points, or 0.02 percent, to 7,805.45. The Nasdaq Composite Index shed 41.52 points, or 0.15 percent, to 27,204.38.

Six of the 11 primary S and P 500 sectors ended in the red, with health and financials leading the laggards by falling 1.33 percent and 0.41 percent after Johnson and Johnson slid 5.73 percent. Energy and communication services led the gainers by going up 1.74 percent and 0.88 percent, respectively. U.S. Treasury yields eased on Tuesday but stayed elevated. The benchmark 10-year yield traded around 5.22 percent and the 30-year yield near 5.56 percent, after pulling back from recent multiyear highs.

Oil prices were volatile as traders weighed hopes of increased Russian diesel supply against Middle East risk. West Texas Intermediate crude settled near 94 dollars a barrel, whipsawing on headlines out of Riyadh and the Gulf.

The chip rout was led by Micron, Applied Materials and SK Hynix. Among banks, Goldman Sachs dipped 0.23 percent after beating estimates, JPMorgan Chase edged down nearly 1 percent after a rare miss, while Citigroup and Wells Fargo fell 5.6 percent and 3.1 percent, respectively.

On the economic front, existing-home sales rose 1.5 percent in September to a 3.99 million annual pace, the National Association of Realtors reported. Paul Tudor Jones said he would short U.S. stocks in the whole year of 2027 as current market conditions are similar to those just before the burst of the dot-com bubble in the beginning of the 21st century.

Investors are watching for Wednesday's CPI data. Fed funds futures showed October hike odds near 19 percent and December near 84 percent, according to CME FedWatch ahead of the Oct. 28 meeting.

The U.S. dollar weakened in late trading on Tuesday.

The dollar index, which measures the greenback against six major peers, lost 0.4 percent to 102.180 at 15:00 (1900 GMT).

In late New York trading, the euro advanced to 1.1201 dollars from 1.1156 dollars in the previous session, and the British pound added to 1.3257 dollars from 1.3206 dollars in the previous session.

The U.S. dollar bought 158.30 Japanese yen, lower than 158.68 Japanese yen of the previous session. The U.S. dollar declined to 0.8325 Swiss francs from 0.8348 Swiss francs, and it dropped to 1.4215 Canadian dollars from 1.4286 Canadian dollars. The U.S. dollar fell to 9.9618 Swedish kronor from 10.0444 Swedish kronor.