ASML Shares Drop Over 5% as Fed Hike Bets and AI Fears Spark Selloff
ASML•Global chip stocks plunged as investors priced in 50 basis points of Federal Reserve rate hikes by December and questioned stretched AI valuations. ASML, the continent’s most valuable company, fell more than 5% by 04:35 ET while Infineon, ASM International and STMicroelectronics dropped between 5% and 8%.
1. Broad Tech Selloff
Global chip stocks tumbled across Asia, Europe and U.S. markets as investors sold technology shares on concerns over inflated AI valuations and the prospect of further Federal Reserve rate increases.
2. Asian Market Turmoil
In South Korea, Samsung Electronics and SK Hynix each plunged over 12%, triggering a 20-minute Kospi trading suspension and driving the index down 10% on the day, while Japan’s Nikkei finished 3.55% lower.
3. ASML and European Shares
ASML, Europe’s most valuable company, slid more than 5% by 04:35 ET as Infineon, ASM International and STMicroelectronics also fell between 5% and 8% in early European trading.
4. Rising Rate Expectations
Traders are now pricing in 50 basis points of Fed rate hikes by December, doubling previous forecasts and raising doubts about the sustainability of debt-funded AI infrastructure investments at current valuation levels.
