Stock Rally Halts on Chip Stock Drops – US Market Wrap

Stocks fell as a disappointing outlook from Europe’s most valuable tech company, combined with concerns about tighter US restrictions on chip sales, sparked a selloff in the industry that has powered the bull market.

Equities fell from all-time highs, with the S&P 500 losing nearly 1%. The Nasdaq 100 declined 1.4%. A closely watched index of semiconductor firms fell to its lowest level since early September. ASML’s US-traded shares fell 16% after the Dutch company reduced its 2025 guidance. Nvidia’s stock fell 4.5% after news broke that US officials were considering capping sales of advanced AI chips from the company and other American firms to certain countries.

The S&P 500 dropped to around 5,815. The Dow Jones Industrial Average declined 0.8%. UnitedHealth Group fell 8.1% following a disappointing outlook. Bank of America rose as earnings exceeded expectations. Goldman Sachs Group was little changed, and Citigroup fell despite strong results.

Treasury 10-year yields fell seven basis points, to 4.03%. The dollar rose. Oil fell as a report suggested that Israel may avoid targeting Iran’s crude infrastructure, alleviating concerns about a potential supply disruption.