US stocks: Nasdaq ends down as chipmakers fall and bank earnings roll in

Analysts expect earnings for companies in the S&P 500 to increase by more than 30% in the third quarter, according to data from LSEG. AI-related technology companies are expected to account for much of that projected growth.

The forecast comes as US stocks draw attention to technology performance and the arrival of quarterly bank earnings. The Nasdaq ended lower as chipmakers declined, while investors considered incoming corporate results.

AI remains central to earnings expectations

The scale of the projected increase places AI-focused technology companies at the center of the S&P 500 earnings outlook. Analysts’ average estimate points to a third-quarter gain exceeding 30%, with the technology sector’s AI exposure identified as a major source of expected growth.

Because the estimate is based on analysts’ averages, it represents a forecast rather than a reported earnings result. Actual performance will become clearer as companies publish their third-quarter figures.

Why the forecast matters

The outlook provides a key benchmark for assessing upcoming corporate results. Strong earnings from AI-related companies could determine how closely reported performance matches current expectations, while the broader earnings season will also include results from banks.

For now, LSEG’s data shows that expectations for S&P 500 earnings are heavily influenced by the performance anticipated from AI-related technology companies.