New York, March 3, 2026, 15:15 (ET) — Regular session.
- Shares of KLA dropped hard in the afternoon, following a broader retreat among chip-equipment makers.
- Energy-price jitters crept in, with markets uneasy over the Middle East conflict
- Friday’s U.S. jobs report is shaping up as the next major catalyst traders are watching for interest rate moves.
KLA Corp (KLAC) dropped roughly 5.9% to $1,444.25 Tuesday afternoon, as chip-equipment stocks faced selling. Lam Research off about 6.3%, Applied Materials down 5.7%, and ASML slipped 3.8%.
For investors, it’s another example: semiconductor equipment stocks often behave like leveraged growth plays—rallying when risk is in favor, but exposed when sentiment sours.
That’s coming into focus now as markets scramble to rethink inflation and rates should energy prices hold up. Stocks built on long-term growth—those get hit harder when rates climb.
Wall Street lost ground as traders tried to gauge the fallout from an escalating Middle East conflict—especially with oil’s next move under the microscope and inflation risks in play. “The main concern is oil goes to $100 a barrel and stays there,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Reuters
KLA makes process-control equipment—think inspection and metrology systems for chip manufacturers aiming to catch defects and push up yields, that is, the percentage of good chips rolling off the line. The company’s reach covers semiconductor process control, specialized semiconductor processing gear, and printed circuit board and component inspection.
The company’s latest quarterly numbers landed in late January, topping forecasts and projecting March-quarter revenue ahead of what analysts were calling for. Still, shares slipped following the release. “The stock had already sprinted into the print,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, noting that expectations had outpaced consensus. Reuters
Still, there are clear risks for holders. If the conflict drags on and energy prices stay elevated, expectations for rate cuts could get pushed further out, which would likely compress growth multiples. Even chip-linked stocks could get knocked, demand aside.
Friday brings the next gauge of sentiment, with the U.S. Labor Department set to publish its February employment report at 8:30 a.m. ET—a release that has the power to jolt Treasury yields and set the mood for tech and chip stocks.
