Saturday, July 26, 2025

Investors Panic as Semiconductor Stocks Face a Major Setback

Yonhap News Agency

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.

Hot this week

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Topics

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Nvidia Stock Surges Past $170 After U.S. Clears China Chip Exports

Nvidia's stock surged over 4% after the Trump administration lifted export restrictions on H20 semiconductors to China.

Army’s New Shaving Rule Could Push Out Thousands of Black Soldiers

The U.S. Army's new shaving policy may disproportionately impact Black soldiers with shaving difficulties, raising concerns over its fairness.

Trump Slams Fed Chair Again, Demands Rates Below 1%

Trump criticizes Fed Chair Powell, insists interest rates should drop below 1%, claiming the economy is strong and inflation is nonexistent.

Related Articles