Rate-hike expectations combined with fund rotations: tech leaders fall first and drag down the US stock market

Jin10 Data July 17 news, on Friday, US stock three major indexes opened lower, with tech stocks sliding across the board. The Philadelphia Semiconductor Index fell more than 20% from its historical closing high point, which could confirm entry into a bear market. SK hynix ADR for the first time fell below its $149 issue price. SpaceX’s share price is down 38% from its peak, and its market cap will have evaporated by about $1 trillion versus its peak. AMD fell more than 7%, Intel fell more than 6%, and TSMC fell more than 5%. Analysts said this sustained pullback in chip stocks has gone beyond fundamentals, and is more driven by funding style switches and shifts in market preferences. In addition, Federal Reserve Chair Powell’s increased dissatisfaction with inflation at his testimony further boosted the market’s rate-hike expectations, and the “hawkish” signals released by other Fed officials also intensified market anxiety. Among them, Logan in the US has clearly called for rate hikes; Schmidt warned that the risk of inflation accelerating further in the coming months still remains. On the geopolitical front, the outlook for a US-Iran war remains unclear, which has hurt market risk appetite.