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Stock market today: Indexes fall from records as chip rout drags tech shares lower

Oct 16, 2024, 03:54 IST
Business Insider
Chip Somodevilla/Getty Images
  • 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.
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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.

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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:

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  • 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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