ASML leads semiconductor stocks lower after reports of emerging competition in China drag the Philadelphia index down 3%.
ASML shares fell sharply Monday following reports of rising competition in China, dragging the broader semiconductor sector lower. The Philadelphia Semiconductor Index (SOX), which tracks 30 major U.S.-listed chip stocks, declined 3% in afternoon trading, marking its third consecutive session of losses.
The drop in ASML, a key supplier of lithography machines for chip manufacturing, reflects concerns over China’s push to develop domestic alternatives. The SOX index had previously shown resilience but is now under pressure amid broader geopolitical and supply chain uncertainties.
Chip stocks, including Nvidia, also faced selling pressure ahead of earnings reports from major tech companies later this week.