The US is stepping in to fight Iran, but the US stock market reaction is muted. What should we focus on in the US stock market this week?

Trump's attack on Iran on Saturday had minimal impact on U.S. stocks, so the night session is relatively calm. Yesterday's video also explained that the market is moving basically as predicted in the video. Under the current circumstances, I think the only thing to watch out for is that leading semiconductor companies like NVIDIA and TSMC are showing signs of a pullback, which requires caution.

Since the Trump administration canceled the exemption for CN's chip manufacturing technology and tightened export restrictions, it means there will be some turbulence in the semiconductor sector. Otherwise, domestic semiconductors representing self-sufficiency wouldn't have surged recently. The performance of semiconductor stocks in Hong Kong has been particularly strong, especially chip manufacturer Hua Hong Semiconductor, which has been rallying.

Under these conditions, U.S. semiconductor stocks could potentially impact the broader market.

NVIDIA, in particular, has risen from around $80 to over $140 without any significant pullback, so many are hoping for a correction.

There are also many unexpected events. Of course, SPY has also seen a slight pullback. If NVIDIA and TSMC in the semiconductor sector decline due to various negative factors, the index could see a 5% or even larger correction.

Overall, other companies may step in to stabilize the market. For example, Tesla's Robotaxi is now operational. Once the operational data from 10 vehicles proves safe, expansion will follow quickly, so Tesla has significant potential.

The market has also been buzzing about stablecoins, as mentioned repeatedly before. Sectors that resonate across U.S., Hong Kong, and A-shares tend to perform well for a while, but stocks like CRCL can be highly volatile. Keeping a core position and day trading might be safer.

Other momentum stocks like NVIDIA's affiliate CRWV, as well as insurtech companies OSCR and LMND, are worth tracking.

If the core semiconductor sector corrects, these momentum stocks will likely be hotly traded again. Meanwhile, previously underperforming stocks like Tesla and Apple could take over as market supports. In this context, proper portfolio management is crucial.

2025 is bound to be a volatile year, requiring full digestion of the gains from the past two years. Thus, stricter personal discipline is needed. Those who can maintain discipline should consider joining our community for better portfolio management.