ASML Holding NV, a key player in the semiconductor industry, saw its stock plummet 5.78% in pre-market trading on Monday, as part of a broader selloff in technology and semiconductor stocks. The drop comes amid escalating trade tensions and a significant market downturn, with US stock futures tumbling and Nasdaq 100 futures falling 4% in pre-market trading.

The semiconductor sector has been hit particularly hard, with the SOXL ETF plunging 15%. Other major players in the industry are also suffering significant losses, with Super Micro Computer falling over 9%, and companies like ARM Holdings, Broadcom, and AMD all experiencing declines of 6% or more. The selloff has extended to AI-related stocks as well, with BigBear.ai dropping over 13% and Palantir sliding about 9%.

The market turmoil appears to be largely driven by escalating trade tensions, fueled by President Donald Trump's recent comments about tariffs and the US trade deficit. While Trump stated he was not intentionally causing a market selloff, he gave no indication of plans to reduce the tariffs that have already wiped trillions in value from US equities. The President's stance that any deal to trim tariffs must lead to the elimination of the US trade deficit has further intensified market anxiety, particularly in sectors heavily reliant on global trade, such as the semiconductor industry. As a result, investors are showing increased caution towards companies like ASML, which are exposed to international market dynamics and trade policies.