U.S. Stock Futures Stabilize as Tech Stocks Face Pressure from ASML Outlook

Stock Futures Steady After Tech Stocks Decline

U.S. stock futures stabilized in Tuesday evening trading, following earlier losses driven by weak earnings from ASML, a key player in the semiconductor industry. S&P 500 Futures held steady at 5,863.75 points, while Nasdaq 100 Futures saw a slight rise to 20,355.75 points. Dow Jones Futures remained unchanged at 43,009 points as of 19:09 ET (23:09 GMT).

ASML's Weak Outlook Hits Chipmakers

ASML, a semiconductor equipment manufacturer, cut its annual forecast due to reduced demand for non-AI chips, triggering a sharp 16.3% drop in its stock during the day. Although ASML’s earnings surpassed estimates, the market reacted negatively. The stock slightly recovered in after-hours trading.

Other major chipmakers followed ASML’s lead, with NVIDIA dropping 4.5%, AMD down 5.2%, and Intel losing 3.3%. Concerns were further fueled by reports that the U.S. government might limit AI chip sales to certain countries, raising fears of declining revenue.

Eyes on TSMC Earnings

The chipmaking sector’s focus now shifts to Taiwan’s TSMC, the world’s largest contract chipmaker, whose third-quarter earnings are due Thursday. Investors view TSMC as a key indicator of the broader semiconductor industry’s health.

Broader Market Trends Amid Earnings Season

The broader stock market also faced challenges. The S&P 500 dipped 0.8% to 5,815.26 points, while the NASDAQ Composite fell nearly 1% to 18,322.05 points. The Dow Jones Industrial Average dropped 0.8% to 42,740.42 points, all from record highs.

In contrast, third-quarter earnings reports from major banks like Goldman Sachs and Citigroup were positive, but largely overshadowed by the tech slump. Key earnings reports, including those from Morgan Stanley, and Netflix, continue this week.