The AEX index began trading lower Tuesday, with chipmakers leading the decline amid ongoing concerns about the profitability of investments in artificial intelligence. The index was down 0.5% as of opening, according to Newsbit and Beleggen.
Chip Sector Pulls Down AEX
ASMI fell 2.8%, ASML declined 2.5%, and Besi lost 2.9% in early trading, as reported by Beleggen and Newsbit. These declines contributed to the broader downturn in the AEX, reflecting anxieties surrounding the AI sector.
Oil Price and Bond Yields Contribute to Market Pressure
The decline in the AEX also coincided with a rise in oil prices, as noted by Newsbit. Rising global bond yields have further fueled investor concerns about the AI sector, making investment in equities less attractive. Investors can now achieve a 5% return on U.S. state obligations, diminishing the appeal of more uncertain AI stocks (Newsbit).
Positive Performers Amidst the Downturn
Despite the overall negative trend, some stocks bucked the downturn. Ahold Delhaize saw a 1.4% increase, potentially boosted by the gradual restoration of systems following a recent cyberattack (ZeelandNet). KPN and Wolters Kluwer also posted gains of 1.1% and 0.8% respectively, according to Beleggen.
Upcoming Quarterly Earnings Reports
Investors are closely watching upcoming quarterly earnings reports from major tech companies this week, including Meta Platforms, IBM, and Tesla (Debeurs, Nieuws). These reports are expected to provide insights into the health of the AI industry, according to multiple sources. Earnings from Besi and AkzoNobel are also scheduled this week (ZeelandNet).
AMG and CSG Stocks Decline While Pharming Gains
Within the AMX, AMG experienced a 2.8% decline, while Theon and CSG both saw losses of approximately 2% (Beleggen). Pharming, however, emerged as a strong performer with a 0.8% gain (Beleggen).