Semiconductor stocks led declines after China’s CXMT IPO and ASML’s lithography machine competition weighed on the sector.
The Dow Jones Industrial Average held a modest 0.2% gain at midday, paring earlier advances as broader markets turned lower. The S&P 500 slipped 0.2% into negative territory, while the Nasdaq Composite fell 0.5%, erasing its opening rally amid a sharp sell-off in semiconductor stocks.
Brent crude dropped 6% to $86.40 per barrel after a U.S.-Iran ceasefire eased inflation concerns, pushing Treasury yields lower. However, semiconductor weakness dominated, with ASML shares plunging over 7% after a Chinese firm began mass-producing DUV lithography machines, challenging ASML’s near-monopoly. Nvidia, AMD, and Micron also fell 4-8%.
China’s ChangXin Memory Technologies debuted in Shanghai with a $490 billion valuation, becoming the country’s most valuable listed company. The move underscored China’s push for semiconductor self-sufficiency, rattling global chipmakers.