On Tuesday, the New York stock market halted its record-breaking streak after three days.
This decline in stock prices was triggered by the Dutch company ASML, known for its semiconductor lithography equipment. ASML accidentally posted its third-quarter earnings report on its website a day early, which had been originally scheduled for Wednesday.
In the report, ASML stated that the semiconductor market recovery is slower than expected, with all sectors except artificial intelligence (AI) continuing to struggle. The company significantly lowered its revenue forecast for next year compared to market expectations, leading to a steep drop in semiconductor stocks and a decline in the overall market.
Meanwhile, international oil prices plummeted by over 4% after news emerged that Israel had abandoned plans to strike Iranian oil facilities.
Record-Breaking Streak Ends After Three Days
The three major indices on the New York stock market, which had hit record highs for two consecutive days on the 11th and 14th, all fell. The Dow Jones Industrial Average dropped by 324.80 points (0.75%) to close at 42,740.42, while the S&P 500 fell by 44.59 points (0.76%) to finish at 5,815.26. The Nasdaq, nearing a new record, slid by 187.10 points (1.01%) to close at 18,315.59 due to the semiconductor sector’s downturn.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), often referred to as the fear index of Wall Street, surged above the 20 mark, rising by 0.94 points (4.77%) to reach 20.64.
Semiconductor Stocks Fall
Semiconductor stocks saw significant losses following ASML’s early earnings report. ASML’s American Depositary Receipts (ADR) plunged by $141.84 (16.26%) to $730.43. Leading chipmaker Nvidia fell by $6.47 (4.69%) to $131.60, while AMD dropped by $8.63 (5.22%) to $156.64. Intel declined by $0.78 (3.33%) to $22.66; Micron, a memory chip producer, fell by $4.02 (3.71%) to $104.32.
The Philadelphia Semiconductor Index dropped 287.00 points (5.28%) to 5,145.21, while the iShares Semiconductor ETF (SOXX), which tracks semiconductor stocks, declined by $12.44 (5.19%) to $227.36.
Apple and Tesla Rise for Two Consecutive Days
Despite the overall market downturn, tech giants Apple and Tesla continued their upward trend for the second consecutive day. Apple rose by $2.55 (1.10%) to $233.85, while Tesla increased by $0.41 (0.19%) to close at $219.57. Alphabet gained $0.50 (0.30%) to reach $165.46, and Amazon inched up by $0.15 (0.08%) to finish at $187.69. However, Microsoft fell by $0.40 (0.10%) to $418.74, and Meta Platforms declined by $4.15 (0.70%) to $586.27.
International Oil Prices Plummet by Over 4%
International oil prices dropped for the third consecutive trading day, falling by more than 4% on Friday. Reports that Israel decided against conducting airstrikes on Iranian oil facilities were cited as the main reason for the price drop. The U.S. reinforcement of Israel’s Patriot missile defense system reportedly contributed to Israel’s decision, alleviating concerns about disruptions in oil supply from the Middle East.
The international benchmark Brent crude fell by $3.21 (4.14%) to $74.25 per barrel, while the U.S. benchmark West Texas Intermediate (WTI) dropped by $3.25 (4.40%) to $70.58 per barrel.
