Global Markets React to ASML Earnings and Tariff Uncertainty

ASML, a Dutch semiconductor equipment firm, reported lower-than-expected net bookings of $4.47 billion in Q1 2025, sparking concerns about a potential slowdown in demand for its chipmaking machines. While the company's CEO stated that the demand outlook "remains strong" driven by artificial intelligence, he noted uncertainty among customers and the impact of tariffs on the industry. ASML's net sales and net profit were $8.78 billion and $2.67 billion, respectively, relatively in line with expectations. The company maintained its 2025 revenue guidance of $33.9-39.6 billion, but warned that tariffs could affect demand.

U.S. markets fell slightly as the VIX index pulled back from a high. United Airlines offered two full-year earnings estimates, one original and one revised for a potential recession, due to economic uncertainty. Nvidia will take a $5.5 billion quarterly charge related to exporting graphics processing units to China. India's inflation rate fell to 3.34% in March. The U.S. retail sales report is expected to show healthy growth, but the details may tell a different story. Stocks retreated, with the S&P 500 down 0.17%, Dow Jones down 0.38%, and Nasdaq down 0.05%. Europe's Stoxx 600 index rose 1.63%.

European markets are expected to open lower on Wednesday due to uncertainty over US trade tariffs. The UK's FTSE 100, Germany's DAX, France's CAC, and Italy's FTSE MIB are all expected to open in negative territory. Investors are also assessing Chinese growth data, which showed a 5.4% expansion in the first quarter, beating expectations. ASML's lower-than-expected net bookings and Nvidia's $5.5 billion quarterly charge related to exporting to China have also impacted the market. Gold prices hit a record high amid tariff uncertainty.

U.S. stock futures fell on Wednesday as investors awaited the release of a key retail sales report and earnings from the first-quarter season. Dow Jones Industrial Average futures dropped 328 points, or 0.8%, while S&P 500 and Nasdaq 100 futures dipped 1.49% and 2.29%, respectively. Nvidia shares plummeted 6% after the company announced a $5.5 billion quarterly charge related to exporting its H20 graphics processing units. The market has been volatile since the Trump administration announced "reciprocal" tariffs on April 2, with the Dow and Nasdaq falling around 4.4% and the S&P 500 dropping 4.8%. Economists expect a 1.2% increase in March's retail sales report, and investors are also watching industrial and manufacturing production data, as well as earnings reports from major companies.