Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.0%), and Dow Jones Industrial Average (-0.8%) settled with solid losses while the Russell 2000 eked out a 0.1% gain.

Index-level losses were impacted by weakness in semiconductor-related names. Initial weakness in the semiconductor space followed a Bloomberg report that the Biden administration is looking at curbing sales of advanced AI chips to certain countries, with a focus on Persian Gulf countries.

Selling intensified in the space in response to ASML's (ASML 730.43, -141.84, -16.3%) Q3 results.

The semiconductor equipment maker's results were released early and disappointed investors due to below-consensus EPS, revenues, and net bookings. The company also issued weaker-than-expected FY25 revenue guidance saying, "While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover." 

This news sharply undercut most semiconductor stocks, including NVIDIA (NVDA 131.83, -6.23, -4.5%), which helped pace an outsized 5.3% decline in the Philadelphia Semiconductor Index (SOX).

Market participants were also reacting to earnings news from influential names. UnitedHealth (UNH 556.29, -49.11, -8.1%), the largest component in the price-weighted DJIA, weighed down other health care stocks. The S&P 500 health care sector declined 1.2%.

Goldman Sachs (GS 522.38, -0.37, -0.1%), Bank of America (BAC 42.14, +0.23, +0.6%), Citigroup (C 62.64, -3.37, -5.1%) are also among the names that reported earnings since yesterday's close. The financial sector settled 0.3% higher despite mixed responses to the quarterly results.

The 10-yr yield settled three basis points lower at 4.04% and the 2-yr yield settled one basis point higher at 3.95%.

• Nasdaq Composite: +22.0% YTD
• S&P 500: +21.9% YTD
• S&P Midcap 400: +13.8% YTD
• Dow Jones Industrial Average: +13.4% YTD
• Russell 2000: +11.0% YTD

Reviewing today's economic data:

• October NY Fed Empire State Manufacturing -11.9 (Briefing.com consensus 2.0); Prior 11.5

Wednesday's economic lineup features:

• 07:00 ET: MBA Mortgage Applications Index (Prior -5.1%)
• 08:30 ET: September Import Prices (Prior 0.8%) and Import Prices ex-oil (Prior -0.1%); September Export Prices (Prior-0.7%) and Export Prices ex-agricultural products (Prior -0.6%)
• 10:30 ET: EIA Crude Oil Inventories (Prior +5.81M)