Nasdaq 100 Suffers Worst Day In 11 Months As Chipmakers Tumble On China Curbs; Magnificent 7 Wipe Out $500B : What's Driving Markets Wednesday?
Portfolio Pulse from Piero Cingari
The Nasdaq 100 experienced its worst day in 11 months, driven by a broad selloff in semiconductor stocks following news of the Biden administration's accelerated export restrictions to China. Major chipmakers like ASML Holding and Nvidia saw significant declines, impacting related ETFs and indices. The S&P 500 and Russell 2000 also fell, while the Dow Jones rose. Other notable stock movements included significant drops in AMD, TSM, ARM, and SCHW, while JNJ rallied on strong earnings.
July 17, 2024 | 6:27 pm
News sentiment analysis
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POSITIVE IMPACT
Johnson & Johnson rallied 3.7% on stronger-than-expected quarterly results.
The positive earnings report boosts investor confidence in JNJ.
CONFIDENCE 100
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Advanced Micro Devices Inc. tumbled 8.3%, dropping below the 50-day moving average support.
AMD is a major player in the semiconductor industry, which was hit hard by the news of export restrictions.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
British chipmaker Arm Holdings plc tumbled 8.7% amid the semiconductor selloff.
Arm Holdings is a major player in the semiconductor industry, which was hit hard by the news of export restrictions.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
ASML Holding's shares fell nearly 12% due to the Biden administration's accelerated export restrictions to China.
The news directly impacts ASML's ability to conduct business with China, a significant market for its advanced chips.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The Roundhill Magnificent Seven ETF saw a collective market cap loss of $500 billion, with Nvidia alone losing $180 billion.
The ETF tracks major tech stocks, which were significantly impacted by the semiconductor selloff.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Nvidia's shares plummeted 7%, accounting for a $180 billion market cap loss, amid the semiconductor selloff.
Nvidia is a major player in the semiconductor industry, which was hit hard by the news of export restrictions.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 90
NEGATIVE IMPACT
Charles Schwab Corp. plunged 9.4% following a 10.2% drop on Tuesday, as several analysts lowered their price targets.
The drop is driven by disappointing Q2 earnings and subsequent analyst downgrades.
CONFIDENCE 100
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
The VanEck Semiconductor ETF plummeted over 6%, its worst day since October 2022, amid a broad semiconductor selloff.
The ETF is heavily weighted in semiconductor stocks, which were hit hard by the news of export restrictions.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
The iShares Semiconductor ETF fell over 6%, marking its worst day since October 2022, due to the semiconductor selloff.
The ETF is heavily weighted in semiconductor stocks, which were hit hard by the news of export restrictions.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
Taiwan Semiconductor Manufacturing shares plummeted 7% following reports of U.S. presidential candidate Donald Trump's comments.
The comments from a U.S. presidential candidate add uncertainty to TSM's business outlook.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 70