$Gold.com(GOLD.US)$iShares Semiconductor ETF(SOXX.US)$AMD(AMD.US)$NVIDIA(NVDA.US)
📉 Why Chip Stocks and Gold Are Sinking Together
Semiconductor stocks and gold normally move independently. Currently, both are dropping for the same shared macro reason.
Yes. Shifting monetary policy and changing market narratives are hitting both assets at once.🫣
Here is what is driving today’s sell off.
1️⃣ AI Sentiment Shift.
Semiconductor stocks plunged after Anthropic CEO Dario Amodei called for slower progress in frontier AI capabilities. Sam Altman, Demis Hassabis and Elon Musk also backed the view.
The SOXX ETF fell 5.5 percent. Micron dropped 6.2 percent and AMD lost 6.5 percent.
2️⃣ Rate Hike Pressure.
Next, Gold fell 1.7 percent as markets priced in an 89 percent chance of a Fed rate hike this Wednesday.
Hot CPI numbers and crude oil rising above 103 dollars a barrel pushed expectations higher.
3️⃣ Fundamentals Remain Strong
Reported earnings for major chipmakers are still growing and accelerating. The drop is mostly investors reducing risk ahead of the Fed decision and upcoming earnings releases.
📊See the full picture in the infographic.
Not financial advice . Please do your own DD😁.
