Stock Market Update

[BRIEFING.COM] The major averages are trading in a stable range, as strength in growth sectors offsets broader market weakness.

ASML (ASML 1447.71, -70.59, -4.65%) is trading lower after reporting its Q1 results this morning. The supplier of EUV lithography systems used to manufacture advanced chips beat EPS and revenue expectations, bouncing back from an EPS miss last quarter, with revenue increasing 13.2% year-over-year to €8.77 billion. It also raised its FY26 revenue guidance to €36-40 billion from €34-39 billion. However, its Q2 guidance came in below expectations at €8.4-9.0 billion. Ultimately, the company topped estimates and spoke constructively about the longer-term outlook for semiconductor growth, though shares are trading lower, which appears to mostly reflect the softer Q2 guidance.

That seems to be weighing on related AI-infrastructures names such as KLA Corporation (KLAC 1726.02, -69.89, -3.89%), Applied Materials (AMAT 386.74, -8.90, -2.25%), and Lam Research (LRCX 262.94, -9.47, -3.48%).

The PHLX Semiconductor Index is down 0.3%, as several large chipmakers, including NVIDIA (NVDA 199.54, +3.02, +1.54%) and Broadcom (AVGO 394.63, +13.85, +3.64%), help pare broader losses across the group.