Investing.com – U.S. stock index futures faltered in late-afternoon trading on Wednesday after a negative session on Wall Street amid lingering concerns about higher interest rates over the longer term.
Mixed first-quarter earnings also kept traders on edge ahead of more key reports, especially from the technology sector, due this week.
But Wall Street was reeling from a prolonged rout in the technology sector, with chipmakers seeing strong selling on Wednesday after disappointing earnings from the industry’s biggest companies.
stabilized at 5,064.75 points, and by 19:40 ET (23:40 GMT) rose 0.1% to 17,682.75 points. stabilized at 5022.21 points.
Wall Street takes a beating from chipmaker as ASML earnings disappoint
Wall Street indexes fell for a fourth straight session on Wednesday as chip stocks fell sharply following weaker-than-expected earnings from Dutch semiconductor giant ASML Holding NV (AS:). US shares of ASML (NASDAQ:) fell 7% during the session.
Market darling NVIDIA Corporation (NASDAQ:) lost almost 4% during the session, but shares rose about 0.5% on the secondary market. Smaller peer Advanced Micro Devices Inc (NASDAQ:) lost 5.8% and was up 0.2% in after-hours trading.
ASML is something of a leader in chip demand because it produces advanced lithography equipment used in semiconductor manufacturing.
Broader markets were pressured by a sharp rise in Treasury yields following signs of low U.S. inflation and hawkish signals from the Federal Reserve.
On Wednesday, the index fell 0.6% to 5,022.21 points, while it lagged its peers with a 1.2% decline to 15,683.37 points. Shares ended down 0.1% at 37,753.31.
Netflix and TSMC revenues are rumored
All attention was now focused on the upcoming earnings reports. In the chip sector, TSMC (TW:) (NYSE:) – the world’s largest contract chipmaker – is due to report earnings during the Asian session on Thursday.
TSMC is largely seen as the leader in global chip demand and is expected to post higher earnings amid growing demand for artificial intelligence-related chips.
Video streaming giant Netflix Inc (NASDAQ:) is also set to report first-quarter earnings on Thursday, as is asset manager Blackstone Inc (NYSE:).
Aftermarket Loaders: Micron, Alcoa rise, Equifax will collapse
Among the aftermarket’s biggest players, shares of aluminum maker Alcoa Corp (NYSE:) rose nearly 3% after its earnings beat forecasts and it noted stable production in 2024.
Micron Technology Inc (NASDAQ:) stock stood out among chip stocks, rising more than 2% in the aftermarket following reports that the memory chip maker was set to receive more than $6 billion in government grants. Shares fell 4.5% during the session.
Equifax Inc. (NYSE:) fell nearly 10% after issuing weaker-than-expected guidance.
Casino operator Las Vegas Sands Corp (NYSE:) shares fell 3% despite earnings beating expectations as its poor performance in Macau remains a concern.