On Tuesday, US time, the significant drop in the stock price of ASML, a major player in the semiconductor industry from the Netherlands, can be considered a miracle created by a single company, as it is rare for a commercial company to influence two major active financial markets.
On Tuesday, US time, the Dutch lithography equipment company ASML announced its third-quarter results, which failed to meet market expectations, leading to a substantial drop of 16.26% in its stock price from the opening to the closing bell, marking the largest single-day decline in nearly 26 years.
This decline first had a direct negative impact on the entire US semiconductor sector, such as the Philadelphia Semiconductor Index, which closed down by 5.28%. Moreover, the three major US stock indices were also affected, with the Dow Jones Industrial Average falling by 0.75%, the S&P 500 by 0.76%, and the Nasdaq Composite by 1.01%. It also had a significant impact on peer companies, with NVIDIA falling by more than 4%, AMD by more than 5%, and Intel by more than 3%.
In ASML's third-quarter results, sales and gross margin were in line with expectations, but the order volume decreased by 53% quarter-on-quarter, far below half of the market expectations. This was mainly due to the US's chip blockade against our country, which led them to lower their sales targets for next year.
This news has sparked widespread concern and worry in related industries, especially in the technology stock sector.
In the European market, ASML's stock listed on the Amsterdam Stock Exchange in the Netherlands also fell by more than 15%, causing a general decline in European technology stocks. Amid a significant drop in international oil prices, the oil and gas sectors of the market also showed a downward trend. Under the influence of these factors, all three major European stock indices closed lower, with the UK's FTSE 100 down by 0.52%, France's CAC 40 down by 1.05%, and Germany's DAX down by 0.11%.
Based on the known information, it is evident that ASML occupies an irreplaceable position in the high-tech industries of Europe and America, and it is capable of influencing the rise and fall of stock markets in Europe and America.
Leave a Reply