Chip stocks fall

U.S. stock markets declined from record highs on Tuesday, primarily due to a sell-off in the semiconductor sector led by ASML, which saw a 17% drop in shares after cutting its 2025 guidance. The Nasdaq fell 1.01%, and the Dow Jones dropped over 300 points, while the S&P 500 also experienced a loss of 0.76%. Despite strong earnings from major banks like Goldman Sachs and Bank of America, which beat expectations, the broader market was negatively impacted by concerns over U.S. export caps on advanced AI chips and disappointing medical cost reports from UnitedHealth. Oil prices fell as geopolitical tensions between Israel and Iran eased, with Brent crude dropping up to 5%. Analysts express caution regarding the market's near-term volatility and potential corrections, despite ongoing strong corporate earnings. Investors are advised to remain cautious in the current earnings season amidst macroeconomic uncertainties.