U.S. stocks retreated from record highs on Tuesday as tech stocks saw significant declines and oil prices slid. The S&P 500 closed down 0.76%, the Nasdaq Composite dropped 1.01%, and the Dow Jones Industrial Average fell 0.75%. The tech sector was particularly hard-hit, with Nvidia weighing down the S&P 500 as it plummeted 4.5%.
U.S.-listed shares of Dutch chip supplier ASML also plunged 16.3% after the company released its quarterly results, contributing to a broader decline in chip stocks. European stocks experienced a mixed day, initially hovering around breakeven but ultimately closing mostly down due to slumping oil prices and declining tech stocks. The Stoxx 600 index closed down 0.80%, with oil and gas stocks falling 3.24%.
However, media stocks showed a gain of 1.46%. Chinese stocks fell as investors showed disappointment over weak export numbers and a lack of new substantial stimulus measures. The CSI 300 index, representing the largest companies on the Shanghai and Shenzhen exchanges, dropped 2.66%.
Tech stocks drive market decline
Hong Kong’s Hang Seng index also fell, declining 3.67%. Contrasting with other markets, Japan’s Nikkei 225 climbed 0.77%, briefly hitting a three-month high.
This uptick was driven by gains in technology and financial stocks. Notably, Nvidia’s strong performance boosted semiconductor-related companies like Tokyo Electron and Advantest. Additionally, Softbank, the majority owner of chip giant Arm Holdings, surged 5.76%.
The weaker yen, beneficial to Japanese exporters, provided further support. Investors are now looking forward to upcoming earnings reports. Key figures to watch include those from various major corporations reporting throughout the week.
Overall, the global markets saw a turbulent day, largely influenced by the significant drops in tech stocks and fluctuating oil prices. Investors remain cautious as they await new economic data and corporate earnings reports.
