Tuesday's session across the pond brings a drastic deterioration in market sentiment. Initial rebound attempts in the tech sector proved short-lived, and a dynamic retreat from semiconductor stocks dragged the major indices deep into the red. Beyond the tech sector, we are also seeing a clear pullback in energy stocks. Investors are showing extreme caution ahead of the upcoming key US CPI inflation reports and the SpaceX debut scheduled for the end of this week.
Additionally, a massive plunge in oil prices is being observed in commodity markets (WTI is losing over 3%, while Brent sheds over 2%, falling towards $90). This comes in response to remarks by Donald Trump, who announced that the US is close to signing a final peace deal with Iran, which is expected to lead to the full reopening of the Strait of Hormuz, a critical waterway for global supplies. Clearly, however, the market is not pleased with the current turn of events.
The surge in uncertainty is best illustrated by the VIX fear index, which spiked by over 10.3% today, crossing the 20-point threshold. The news about OpenAI filing a confidential initial public offering (IPO) also remains in the spotlight.
Currently, we are seeing a nearly 4% pullback in the US100 (Nasdaq 100 futures), while the US500 is down almost 2%.
A significant factor in the deepening declines today is the news that Donald Trump is announcing retaliation against Iran for the shooting down of a US helicopter. Escalating the situation at this stage could prolong the current conflict for months rather than weeks.
Technical view: A key level for the US100 is the 29,000-point mark. If the session closes below this level, the correction could extend as far as 26,000–27,000 points. Source: xStation5
Which stocks are losing the most?
The main driver of the sell-off is the capitulation of the semiconductor and AI sectors, which are correcting previous euphoric gains. Here are the top decliners:
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Marvell Technology (MRVL.US): -14.2% – the sharpest drop in the sector.
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Enphase Energy (ENPH.US): -13.5% – a massive sell-off fueled by risk aversion.
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ARM Holdings (ARM.US): -13.3% – sharp investor retreat from the British chip designer.
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Super Micro Computer (SMCI.US): -12.3% – deepening correction for one of the former AI leaders.
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Qualcomm (QCOM.US): -10.5% – significant deterioration in sentiment surrounding the mobile processor manufacturer.
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Micron Technology (MU.US): -9.408% and Intel (INTC.US): -9.0% – memory and processor giants under heavy selling pressure.
Daily Summary- Return of the Sell-off on Wall Street⬇️
US Open: Indices Continue Rebound, Driven by Tech Stocks and Falling Oil Prices
Intel gains 10% after talks with Google and Nvidia
Broadcom ahead of earnings - Outlook more important than profits
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