Chip Stock Sell-off Pauses, True Test Awaits with Tech Giant Earnings

BlockBeats News, July 21st. Overnight, the US stock market saw a rebound in chip stocks, with the Semiconductor ETF rising by about 1.3%. NVIDIA, AMD, Micron, and others experienced a general recovery, but the Nasdaq still closed near flat. The previous concentrated selling pressure and leverage rebalancing have temporarily eased. The stabilization of the US stock market has provided a brief respite for the Korean stock market, East Asian storage, and equipment chains. However, the inertia of deleveraging and high-volatility chips has not been fully digested.

Upcoming earnings reports from Alphabet, Tesla, Intel, and others will reassess AI demand, capital expenditure, and profit realization capabilities. Therefore, whether the rebound can continue still depends on whether the earnings can support the previous high expectations. (FXStreet)