The Nasdaq Composite fell by 0.8%, while the S&P 500 and dow Jones each declined by 0.3%, reflecting growing concerns about chip demand in the market. This downturn comes despite ASML reporting stronger-than-expected Q3 earnings, as investors remain focused on the company’s cautious outlook for 2025.
ASML, a key player in the semiconductor industry, indicated that certain segments, notably memory chips, are experiencing slower recoveries than anticipated. This has raised alarms about a potential slowdown in non-AI sectors of the market.
In light of ASML’s downgraded forecast for 2025, semiconductor stocks may continue to face pressure in the short term. While there is some optimism surrounding long-term growth potential in AI technologies, traders should prepare for volatility and maintain a bearish outlook on chipmakers for now.