(Bloomberg) — ASML Holding NV shares unexpectedly dropped by the most in 16 months, with traders blaming the rapid slump on an erroneous trade by a market participant.
Most Read from Bloomberg
Europe’s most-valuable tech firm ultimately pared those losses and was just 3.6% lower in afternoon trading in Amsterdam, in line with Nasdaq futures and its peers from the continent.
According to multiple equity traders, an erroneous trade could have been behind the initial slump, even as a spokeswoman for pan-European stock exchange Euronext SA rejected the idea that a “fat finger” trade was to blame.
Trades made by human error, or even by algorithms, are often referred to as “fat fingers,” a term stemming from the idea that a person’s over-sized digits might cause them to hit the wrong button on a computer keyboard.
While generally not uncommon, fat fingers in high-profile stocks like ASML are rare. ASML shares — which dropped as much as 7.1% just after opening on Tuesday — went into a trading halt due to volatility just after the open, lasting three minutes.
In the first minute of the session, 28,558 shares traded between €858.20 and €815.60, with only 110 shares trading at the day’s lowest price before the stock was halted. It resumed trading at €853.40 after an auction.
US inflation figures for January are likely to show disinflation has spread from goods to services, according to Bloomberg Economics. US stocks futures are lower as traders wait on how the data will impact expectations for interest-rate cuts this year.
Even with Tuesday’s decline, ASML is up 24% so far in 2024, giving it a market capitalization of €335 billion ($361 billion). The Stoxx 600 Technology Index, which has gained 9.6% year-to-date, is on track for its first decline in nine sessions after Monday’s close at the highest level in more than 23 years. The index fell as much as 3.1% on Tuesday, making tech the worst-performing sector in Europe.
“I think the technology sector is just profit taking due to technicals indicating overbought territory today,” said Janet Mui, head of market analysis at RBC Brewin Dolphin.
While erroneous trades are sometimes canceled, there were no cancelations for ASML as of midday, data compiled by Bloomberg show.
A spokesperson for ASML declined to comment.
–With assistance from Henry Ren, Allegra Catelli and Jan-Patrick Barnert.
(Updates with more context from first paragraph.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Signup bonus from
