ASML Shares Slide Over 5% as STOXX 600 Falls 1.3%
ASML•Europe's STOXX 600 dropped 1.3% to 631.06, with the tech sector sliding 3.4% as investors priced in a 50bp Fed rate hike. Semiconductor equipment maker ASML declined over 5% alongside peers on concerns about rising corporate debt for AI investments.
1. Market Selloff and Rate Outlook
Europe's STOXX 600 fell to 631.06 points, a 1.3% decline, driven by rising expectations of a 50 basis point Federal Reserve rate hike. The tech sector led losses with a 3.4% drop as investors reassessed valuations in a higher-rate environment.
2. ASML Performance in the Downturn
Semiconductor equipment maker ASML shares slipped over 5%, mirroring declines at Infineon and Aixtron. The selloff reflects broader concerns about industry reliance on debt-financed investments and margin pressures under tightening monetary policy.
3. Debt-Financed AI Spending Concerns
Corporate spending on artificial intelligence has been fueled by debt issuance, raising investor worries about earnings sustainability if borrowing costs continue to rise. Analysts caution that companies may need to secure additional funding before achieving returns on AI investments.
