Nasdaq 100 Drops 1% as Tech Giants Nvidia and ASML Face Major Losses: Markets Wrap

Global equity optimism is showing signs of cooling, with a Bank of America survey flashing a sell signal. Meanwhile, Rubner predicts the S&P 500 rally has room to run as traders cancel their hedges.

Disappointing earnings from Europe’s most valuable tech company, along with concerns over tighter US restrictions on chip sales, triggered a selloff in the tech industry that has been a driving force behind the bull market.

• Market Performance:
  The S&P 500 slipped 0.4%, while the Nasdaq 100 dropped 1.2%. The Dow Jones Industrial Average also fell by 0.4%. UnitedHealth Group Inc. plunged after issuing a disappointing outlook, and Apple Inc. hit a record high. Meanwhile, Bank of America Corp. (BAC) climbed 2% after beating earnings estimates, though Goldman Sachs (GS) and Citigroup (C) saw declines despite reporting solid results.
• Semiconductor Industry Hit:
  A key semiconductor index saw its largest plunge since early September, dragging down equities from record highs. US-traded shares of ASML Holding NV plummeted 16% due to a bearish outlook, with orders missing estimates. Nvidia Corp. (NVDA) fell 5% amid reports that US officials are discussing limits on sales of advanced AI chips to specific countries.
• Corporate Highlights:
  • Boeing Co. (BA) made moves toward raising $25 billion, providing financial flexibility to endure a paralyzing strike and operational setbacks.
  • Johnson & Johnson (JNJ) posted stronger-than-expected Q3 earnings, driven by booming sales of its cancer drug Darzalex.
  • Charles Schwab Corp. (SCHW) surpassed earnings expectations, showing recovery from last year’s turbulence by cutting expensive debt.
  • PNC Financial Services (PNC) reported better-than-expected net interest income, forecasting record revenue for next year.
  • Walgreens Boots Alliance Inc. (WBA) announced plans to close 14% of its US stores as consumer spending pulls back.
• Treasuries and Oil:
  Treasury 10-year yields fell six basis points to 4.04%. Oil prices plunged 5% on reports suggesting Israel may avoid targeting Iran’s crude infrastructure, easing concerns over supply disruptions. However, Israeli Prime Minister Benjamin Netanyahu emphasized that Israel is free to act in any counter-strike.