Tech Turbulence: ASML's Weak Outlook Weighs on Global Markets

U.S. stocks dropped on Tuesday as weak sales forecasts from chipmaker ASML dragged tech shares lower. Major indexes fell, with the S&P 500 and Dow retreating from record highs. Falling crude prices impacted the energy sector, while global markets reeled from soft data and economic uncertainties.

On Tuesday, U.S. stocks tumbled following lackluster global market performances. A disappointing sales forecast by chipmaker ASML exerted downward pressure on tech shares, intensifying market woes. In response, energy stocks bore the brunt, falling significantly as crude prices slid amid easing supply worries.

The three major U.S. indexes ended the session in red territory. Notably, the S&P 500 and Dow stepped back from previous record highs, while financial firms Goldman Sachs and Citigroup reported better-than-expected profits. Despite these gains, healthcare giants UnitedHealth and Johnson & Johnson failed to impress investors.

As energy stocks suffered a sharp decline, European markets joined the downturn following ASML's bleak annual sales prediction. Investors also remain attentive to the European Central Bank's impending rate decision, with lower oil prices stirring positive disinflationary signals for the global economy.

(With inputs from agencies.)