This morning’s US selloff has once again been driven by tech. And within the tech sector, it is semiconductor stocks which were particularly badly hit. Super Micro Computer was down over 8%, while NVIDIA, Marvell, Micron, AMD, TSMC, Broadcom, Intel and IBM were all down between 2-3%. The recent selloff in semiconductors has certainly taken some heat out of the sector.
But all the major players are still up substantially from the end of March. Technically, the selloff so far looks like no more than a bit of ‘back and fill’, with no significant damage done chart-wise. Having said that, the damage done to the major US indices could be of more significance.
All the majors suddenly lurched lower yesterday afternoon, in a move that took both the NASDAQ and S&P 500 down to one-month lows. The indices subsequently recovered. But the sudden drop was enough to remind traders that air pockets exist in these markets, indicating some vulnerability.
Source: TN Trader
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