Traders are in a frenzy as Nasdaq-100 futures saw a significant decline on Tuesday, losing a staggering $6 billion in holdings. This sharp downturn comes on the heels of ASML Holding NV’s unexpected guidance reduction for 2025, sending shockwaves through the semiconductor sector.
A Historic Drop in Open Interest
According to Bloomberg data, open interest—the measure of outstanding positions in Nasdaq-100 futures—plummeted by $5.7 billion. This marks the largest drop of 2024, significantly outpacing the average daily fluctuations seen this year.
Despite a trading volume of 524,000 contracts—slightly above the 20-day average—this dramatic decline indicates that traders are rapidly exiting the technology space, reacting strongly to ASML’s early report.
Semiconductor Stocks Take a Hit
The ramifications of ASML’s announcement were felt across the global semiconductor market, which collectively lost approximately $420 billion in value. The Philadelphia Semiconductor Index suffered a 5.3% drop, the most substantial decline since early September. Major players like Nvidia Corp. and other chip makers were caught in the selloff, exacerbating concerns about the industry’s future.
What’s Next for Traders?
As traders reevaluate their positions in light of ASML’s guidance cut, the market’s reaction suggests ongoing volatility in the tech sector. Investors will be closely watching future developments to gauge the potential impact on semiconductor stocks and the broader Nasdaq-100.
In an environment marked by uncertainty, will traders find a way to recover, or will this trend continue? Stay tuned for updates as the situation unfolds.
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