Chip Stock Sell-Off Intensifies! ASML, Corning, SK Hynix Slump; PayPal, Boeing Rally

According to Barron's, most U.S. stocks closed higher on Tuesday (28th), but a fresh wave of selling in chip stocks continued to spread, affecting not only South Korean markets but also reverberating across the U.S. market.

Corning (GLW-US), a major fiber-optic networking equipment manufacturer, was one of the worst performers in the S&P 500. Despite reporting second-quarter earnings that beat market expectations, the company's disappointing financial guidance sent its stock tumbling 12%.

ASML (ASML-US), the Dutch semiconductor equipment maker, fell 4.2%. The stock had already dropped 5.8% on Monday after multiple media outlets reported that a Chinese state-backed company had begun mass-producing a chip manufacturing tool long dominated by ASML.

The news also dragged down peer SK Hynix, whose U.S.-listed shares fell 9% on Tuesday, while its Seoul-listed stock closed down 15%.

SanDisk (SNDK-US), the memory card manufacturer, plunged 14%, making it the biggest loser in the S&P 500 on the day.

Other semiconductor-related stocks also weakened: Marvell Technology (MRVL-US) dropped 7.8%, Intel (INTC-US) fell 5.9%, AMD (AMD-US) declined 8.2%, and server maker Dell (DELL-US) also fell 8.2%.

As AI-related stocks broadly declined, Sherwin-Williams (SHW-US), a paint manufacturer, rose 8.3%, making it the top performer in the Dow Jones Industrial Average. Although management stated that "demand has not shown clear improvement," second-quarter profits exceeded market expectations, and the company raised its full-year forecast, boosting investor confidence.

PayPal (PYPL-US) gained 4% as investors continue to favor its transformation strategy. The company reported solid second-quarter results and raised its annual outlook.

Boeing (BA-US) rose 4.8%. Despite second-quarter profits falling short of expectations, CEO Kelly Ortberg said the company's turnaround is accelerating. "Operations have become more stable, and key certification programs are progressing on schedule," Ortberg noted.

Logistics giant UPS (UPS-US) turned negative, closing down 6.6%. Although it reported better-than-expected second-quarter earnings and raised its full-year forecast, the stock ultimately ended lower.

Coca-Cola (KO-US) rose 5%. Second-quarter profits slightly exceeded analyst expectations. Notably, unit case sales increased 5% year-on-year, indicating that consumers continue to buy soft drinks despite inflationary pressures.

Cruise operator Royal Caribbean (RCL-US) gained 5.7%. As the first cruise line to report earnings, it benefited from strong last-minute bookings and lower costs, delivering second-quarter revenue and profits above Wall Street expectations.

Apple (AAPL-US) rose 0.9%. The previous trading session saw a 1.2% gain, helping Apple reclaim the title of the world's most valuable company by market capitalization for the first time in over a year, surpassing Nvidia (NVDA-US).

Johnson & Johnson (JNJ-US) rose 0.3%. The company announced it has agreed to pay $5.5 billion to settle multiple lawsuits alleging its talc products caused ovarian cancer.