Dow Rallies, TSE Up, Semiconductor Stocks Tumble

TORONTO – Market Watch – The Dow Jones surged 300 points after Tuesday’s sell-off, with the S&P 500 and Nasdaq also advancing, though the Nasdaq 100 still lags behind. Global semiconductor stocks saw a $420 billion drop in market value following Dutch chipmaker ASML’s disappointing forecast for 2025. Meanwhile, the Toronto Stock Exchange (TSE) posted modest gains, supported by strength in the financial and energy sectors despite ongoing global uncertainty.

ASML Forecast Causes $420B Semiconductor Wipeout

ASML’s 14% stock plunge sent shockwaves through the semiconductor industry. With global chip stocks shedding over $420 billion in value, companies like NVIDIA, AMD, and Taiwan Semiconductor were hit hard. ASML’s revised outlook and challenges in its China operations, compounded by export restrictions, weighed heavily on the sector. In response, Asian and European markets continued their decline, impacting overall market sentiment.

Toronto Stock Exchange Sees Gains Amid Global Volatility

The TSE saw gains, buoyed by resilient energy and financial sectors. As global markets reeled from semiconductor losses, Canada’s heavyweights in banking and energy helped the TSE post positive results. Investors remain cautiously optimistic, with upcoming earnings in the retail and tech sectors expected to further influence market direction.

Retail Earnings Set the Stage for Tech Season

Retail earnings season is underway, following an unexpectedly strong performance from banks. Investors are eagerly awaiting tech sector earnings, which are expected to provide a boost to U.S. and Canadian indices, potentially easing some of the strain caused by the semiconductor downturn.

Geopolitical Tensions and Oil Resilience

Global energy markets remain uncertain due to rising geopolitical tensions, but oil prices have held steady. Canadian energy stocks, integral to the TSE’s performance, have shown resilience, though market participants are watching for potential disruptions.

Bitcoin Rallies Amid ETF Inflows, Tesla Raises Crypto Speculation

Bitcoin surged to a two-month high as cryptocurrency ETFs saw significant inflows. Tesla’s transfer of $760 million in Bitcoin to unidentified wallets stirred speculation about its crypto holdings strategy, adding intrigue to an already volatile asset class.

Treasury Yields Drop as Investors Eye Fed

In bond markets, Treasury yields fluctuated, with the 10-year yield falling slightly to 4.01%. Investors are focused on the Federal Reserve, which is expected to make a 25-basis-point rate cut, further influencing global markets.