TLDR:
- ASML Holding’s disappointing earnings outlook caused chipmaker stocks to drop
- Nvidia shares fell 5% on potential US restrictions on AI chip sales
- UnitedHealth Group shares fell 7% after missing 2025 profit estimates
- Oil prices tumbled over 4% on reports of Israel potentially refraining from attacking Iran’s facilities
- Bank earnings from Goldman Sachs and Bank of America showed strong performance in investment banking
The stock market retreated from recent record highs on Tuesday, driven by a selloff in the technology sector.
ASML Holding, Europe’s most valuable tech company, released its earnings report a day earlier than expected, revealing a disappointing sales outlook for 2025. This news sent shockwaves through the semiconductor industry, causing shares of major chipmakers to tumble.
ASML’s stock price plummeted by more than 15% following the release of its earnings report. The Dutch company, which supplies critical equipment to semiconductor manufacturers, missed order estimates and provided a bearish outlook for the coming year. This negative sentiment quickly spread to other prominent players in the chip industry.

Nvidia, a leading manufacturer of graphics processing units and AI chips, saw its shares drop by approximately 5%. The company’s stock price retreated from its recently achieved all-time high. Advanced Micro Devices (AMD) also experienced a similar decline, with its shares falling around 5% as well.
Adding to the pressure on Nvidia was a report suggesting that US officials have discussed the possibility of capping sales of advanced AI chips to specific countries. This potential restriction on chip exports raised concerns about future growth prospects for companies heavily invested in the AI sector.
The broader market felt the impact of these developments, with major indices pulling back from their recent peaks.
The Dow Jones Industrial Average edged down by about 0.4%, falling just below the 43,000 mark it had surpassed for the first time on Monday. The S&P 500 also retreated by roughly 0.4% from its fresh all-time high, while the tech-heavy Nasdaq Composite experienced a more significant decline of around 0.9%.
In the healthcare sector, UnitedHealth Group contributed to the market’s downward trend. The company’s shares fell approximately 7% after its 2025 profit guidance missed analysts’ estimates. This disappointing outlook from one of the largest health insurers in the United States added to the overall market uncertainty.
Despite the general downturn, there were some bright spots in the financial sector.
Goldman Sachs reported a 45% surge in third-quarter profit compared to the previous year, attributing the strong performance to increased dealmaking activity. Similarly, Bank of America posted earnings that exceeded expectations, also citing outperformance in its investment banking division.
In the retail space, Walgreens Boots Alliance provided a glimmer of positive news. The pharmacy chain’s shares climbed more than 10% following the announcement of its plan to close 1,200 stores over the next three years as part of a broader turnaround strategy.
The energy sector also experienced significant movement, with oil prices tumbling over 4%. This drop came in response to a report suggesting that Israel might refrain from targeting Iran’s crude and nuclear facilities in its response to a recent attack. West Texas Intermediate crude futures fell to just above $70 per barrel, while Brent crude futures dipped to around $74 following the news.
As earnings season continues to unfold, investors remain cautious about potential surprises in what some Wall Street analysts anticipate could be a challenging period.
The market’s reaction to ASML’s earnings report underscores the sensitivity of tech stocks to disappointing results or outlooks, particularly in the semiconductor industry.
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