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A massive sell-off in semiconductors pushed stock indices away from all-time highs.
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The drop was led by Dutch chip company ASML, which lost 17% on Tuesday.
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The drop overshadowed better-than-expected bank earnings results.
A drop in chipmaker stocks on Tuesday halted the latest rally, snapping the indices from record highs hit in the previous session.
The tech-heavy Nasdaq fell 1% as Tuesday’s session dealt a double blow to the semiconductor industry.
Europe’s largest technology company, ASML, sparked pessimism across the sector when it posted disappointing earnings and cut its forecast for 2025. Shares in the Dutch chip machine maker plunged 16%.
Meanwhile, a report that the United States is considering limiting exports of specific chips only increased investor concern, sending the overall chip sector tumbling. Nvidia lost more than 5%, while Broadcom fell more than 3% and shares of Taiwan Semiconductor Manufacturing Company fell more than 2%.
The drop diverted attention from the banking sector’s performance on Tuesday, when Goldman Sachs, Bank of America and Citigroup all beat earnings estimates.
Meanwhile, oil prices also caused a stir during the day, retreating as geopolitical tensions between Israel and Iran moved away from a worst-case scenario. Although Israel plans to retaliate for an earlier Iranian missile attack, it told the United States that it will only focus on military targets.
Brent crude oil, the international benchmark, fell as much as 5% in intraday trading.
Here is where the US indices were at the 4:00 pm close on Tuesday:
Here’s what else is happening:
In commodities, bonds and cryptocurrencies:
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West Texas Intermediate crude oil fell 3.78% to $71.04 a barrel. Brent crude oil, the international benchmark, fell 3.52% to $74.73 a barrel.
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Gold rose 0.62% to $2,682.1 an ounce.
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The 10-year Treasury yield lost four basis points to 4.03%.
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Bitcoin rose 1.30% to $65,825.
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