Global Chip Stocks Erase $420 Billion After ASML Sales Warning

-- Investors in chip stocks are facing a fresh gut check after a tepid outlook from key equipment supplier ASML Holding NV sparked a global rout in the sector.Combined market value losses for an index of US-traded chipmakers plus the largest Asian stocks reached more than $420 billion. Shares in ASML extended losses on Wednesday, falling 5.0%.

While a weak 2025 forecast was expected from ASML given slowness in non-AI applications as well as reduced spending by Intel Corp. and other factors, “the magnitude of the correction is a negative surprise,” Atif Malik, an analyst at Citigroup Inc., wrote in a note. Despite the market reaction, some investors see ASML’s woes as possibly specific to the Dutch company. AI demand remains brisk and Beijing’s efforts to revive its economy are seen helping a broader recovery.

The decline has given weight to market predictions that the Bank of England could cut interest rates at its next policy conferenceOsh the African elephant enjoyed an extravagant farewell party at Oakland Zoo, keepers said on Tuesday, October 15, ahead of his planned transfer to the Elephant Sanctuary in Tennessee.Footage released by the zoo shows Osh surrounded by snacks and crafted tributes including a banner reading Goodbye Osh.

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