U.S. stocks fell on Tuesday as a surprising earnings miss from ASML Holding (ASML) weighed heavily on the semiconductor sector, dragging the broader market lower. ASML’s earnings were released unexpectedly early and showed a bleak sales outlook for 2025, pushing shares down 15% and hitting other chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD), which dropped 4% each.
As of midday, the Dow Jones Industrial Average (^DJI) edged 0.2% lower, giving up some gains from its previous climb above 43,000. The S&P 500 (^GSPC) dropped 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) tumbled 0.6%, with chipmakers leading the declines.
Market Movers:
- ASML Holding (ASML): Shares plummeted 15% after the semiconductor equipment supplier's earnings were accidentally released a day early, revealing disappointing guidance for 2025.
- Nvidia (NVDA): Shares slid 4% as a result of ASML’s bleak forecast and concerns over export restrictions for AI chips. Nvidia’s stock had reached record highs the previous day before tumbling.
- Advanced Micro Devices (AMD): The stock dipped 4%, also dragged down by ASML’s disappointing results and the general decline in the chipmaking sector.
- UnitedHealth Group (UNH): Shares fell more than 5% after the company’s 2025 profit guidance missed Wall Street expectations, weighing on the Dow.
- Goldman Sachs (GS): Shares rose slightly after the bank posted a 45% year-over-year jump in third-quarter profits, driven by a rebound in dealmaking.
- Bank of America (BAC): The stock climbed after reporting an earnings beat, fueled by strong performance in investment banking.
Energy and Oil Prices
Energy stocks were also under pressure as oil prices fell on reports that Israel would avoid targeting Iran's oil infrastructure amid ongoing geopolitical tensions. West Texas Intermediate crude futures (CL=F) dropped more than 4%, hovering just above $70 per barrel, while Brent crude futures (BZ=F) slipped below $74. The news eased fears of further supply disruptions, sending energy stocks lower.
ExxonMobil (XOM): Shares dipped 2% as oil prices declined, with the energy giant tracking the broader losses in the oil market.
Chevron (CVX): The stock fell nearly 3%, as the oil giant faced the same pressure from declining crude prices.
Financials Outperform
While tech stocks took a hit, the financial sector provided some much-needed balance. Goldman Sachs (GS) reported a 45% jump in third-quarter profits, largely due to a resurgence in dealmaking, and Bank of America (BAC) also posted an earnings beat.
Both stocks saw modest gains following their reports, as investors viewed the strong banking earnings as a positive signal amid broader market uncertainties.
Looking Ahead
Investors will be closely watching more earnings reports slated for the remainder of the week, with Johnson & Johnson (JNJ) and Charles Schwab (SCHW) set to announce results. With geopolitical developments and earnings surprises shaping market movements, volatility is expected to persist in the near term.