Chip selloff and mixed bank results weigh on Wall Street. IMF lifts its growth forecast but warns on bond yields
Reuters reported that U.S. chip stocks extended their slide on Tuesday on a China memory-chip report and AI spending worries; AP reported the Kospi sank more than 5% in Seoul. JPMorgan posted a rare profit miss, Citigroup's profit jumped about 40%, Goldman Sachs beat estimates and Wells Fargo's profit rose, per Reuters and The Globe and Mail. Bank of America was fined more than US$1.2 billion over failures to police suspicious transactions, per Reuters, Bloomberg and the Financial Times. The IMF slightly raised its world growth forecast but flagged AI-related correction risk, debt and war, CBC and Reuters reported. ASML raised its outlook on Wednesday, Reuters said. We could not confirm Tuesday's closing levels from two sources.
The AI trade has driven much of the stock rally, and a chip selloff plus rising bond yields is the combination the IMF warned about.
If you hold technology funds or a pension with large U.S. tech exposure, expect volatility. A rise in bond yields can push mortgage rates up.
Bulls say bank earnings and strong AI demand, as ASML's outlook shows, are signs the cycle is intact.
Bears say stretched valuations and rising yields leave little room for error.
Today's U.S. consumer prices will test whether markets can keep both falling yields and AI optimism. We print no index levels because none were confirmed.
DailyDrop Canada edition No. 10 · Morning · WED., OCT. 14, 2026