- A sell-off in semiconductors pulled stock indexes away from record highs.
- The rout was led by Dutch chip firm ASML, which shed 17% on Tuesday.
- The decline overshadowed better-than-expected bank earnings results.
A drop in chipmaker shares on Tuesday hit pause on the latest rally, yanking indexes from the record highs achieved in the previous session.
The tech-heavy Nasdaq dropped 1% as Tuesday’s session delivered a double-whammy to the semiconductor industry.
Europe’s largest tech firm, ASML, set off sector-wide gloom when it posted disappointing earnings and slashed 2025 guidance. Shares of the Dutch chip machine maker plunged 16%.
Meanwhile, a report that the US is considering export caps on specific chip sales only added to investor concern, pulling the broader chip sector lower. Nvidia shed over 5%, while Broadcom dropped over 3%, and Taiwan Semiconductor Manufacturing Company stock dipped more than 2%.
The rout took attention from Tuesday’s bank sector performance, as Goldman Sachs, Bank of America, and Citigroup beat earnings estimates.
Meanwhile, oil prices also made waves during the day, falling back as geopolitical tensions between Israel and Iran took a step back from the worst-case scenario. Though Israel plans to retaliate for a previous Iranian missile strike, it told the US it will only focus on military targets.
Brent crude, the international benchmark, fell as much as 5% in intraday trading.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
Here’s what else is going on:
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil dropped 3.78% to $71.04 a barrel. Brent crude, the international benchmark, fell 3.52% to $74.73 a barrel.
- Gold climbed 0.62% to $2,682.1 an ounce.
- The 10-year Treasury yield shed four basis points to 4.03%.
- Bitcoin rose 1.30% lower to $65,825.
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