Global Market Jitters: Stocks Plummet Amid Tech and Luxury Retail Slumps

Global stocks tumbled following disappointing earnings from European giants, with tech company ASML and luxury brand LVMH leading declines. Investor sentiment soured further due to potential U.S. export restrictions on AI chips. Meanwhile, a strengthening dollar and fluctuating oil prices add to market volatility.

Global stocks experienced a sharp decline on Wednesday, weighed down by disheartening results from European giants LVMH and technology firm ASML. The downward trend in shares came as investors leaned towards a more gradual decrease in U.S. interest rates, which led to a stronger dollar.

ASML, with major clients like TSMC and Samsung, revealed a dismal sales forecast for 2025, attributing it to prolonged weakness in the semiconductor market beyond AI. Its shares plunged dramatically, continuing their fall on Wednesday. Simultaneously, LVMH, heavily reliant on Chinese consumers, reported disappointing third-quarter sales, causing its stock to plummet.

Adding to the market tensions was news that U.S. officials might cap export licenses for AI chips to specific countries, further impacting the chip sector. This development dragged down indices in regions like Japan and South Korea, while prominent figures expressed potential buying opportunities amid volatility. The rising dollar, fluctuating oil prices, and upcoming political events hinted at a shaky future for global markets.

(With inputs from agencies.)