Big slump in chip stocks sinks S&P 500
The S&P 500 slid 0.8% on Tuesday. The Nasdaq 100 was down 1.4%, and the Russell 2000, which tracks small caps, added a modest 0.1%.
Chips and AI stocks took a hit. The VanEck Semiconductor ETF, a closely watched gauge of semiconductor companies, fell 5.4%. The US-traded shares of Dutch semiconductor-equipment supplier ASML were down 16.3% — its biggest daily drop since 1998 — on disappointing earnings and guidance cuts. Nvidia lost 4.5% after Bloomberg reported that the US was discussing capping chip sales from the company and others to certain countries.
Major-sector performance was mixed. The energy sector plunged 3.2%, as crude-oil futures dropped by more than 4%. The Washington Post reported late Monday that Israel might avoid targeting Iran’s oil or nuclear facilities, relieving concerns over crude-oil supplies.
On the other hand, real estate was the best-performing sector, up 1.3%.
Among individual stocks, Walgreens was up 15.8% after the drugstore chain said it would close 1,200 locations during an earnings call on Tuesday. The stock had been the worst S&P 500 performer so far in 2024, down more than 60%.
