Pre-Market Report – Wednesday 16 October: US markets slip on ASML falls

US equities ended lower near worst levels after Europe's most valuable chip company ASML -16% forecasted lower-than-expected 2025 sales, triggering a sell-off in the semiconductor sector. The Dow and S&P 500 fell from their record highs. Dow ended 325 points lower (-0.75%). Up 213 points. Down 362 points at worst. The S&P 500 slid 0.76% but held above 5,800, while small caps Russell 2000 finished just above flat line. The NASDAQ underperformed, off 1.01%, pressured by losses in Nvidia, down 4.7% after a media report from the Biden camp is considering capping AI chip exports by US companies. Philadelphia semiconductor index tumbled 5.28%, its biggest one day drop since early September. Earnings reports came in mixed, with some positive reactions from banks in contrast to losses in healthcare insurer stocks. US 10Y yield fell 6.3bps, the USD Index slipped 0.08%, and Bitcoin rose 1.12%.

ASX to fall. SPI Futures down 32 points (-0.38%).

COMMODITIES

• Oil plunges 4% as Iran supply disruption concerns ease, demand outlook weakens.
• Gold gains on lower yields, traders await more US data.
• Copper hits three-week low on confusion over China stimulus.
• IEA sees oil surplus looming, reassures on Iran supply risk.
• China will launch platinum, palladium futures in Q1, producers' council says.

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