Chipmakers and China: S&P 500 extends decline to 50 points

Chipmakers and China are weighing on US equity markets.

The main catalyst for the selloff was a soft guide from ASML in results that were accidentally released early. Shares of the company are down 17% and have led to 5% declines in Nvidia and AMD among other chip names. Other laggards are China stocks with JD down 9% and BIDU down 5%.

It’s not all bad news with cruise lines strong in a good sign for consumers and banks holding up after upbeat earnings from BAC, GS and Citi.

The selling has accelerated in the past 30 minutes and the S&P 500 has now erased yesterday’s record rally.

This article was written by Adam Button at www.forexlive.com.