Analysis: Rate hike expectations combined with capital rotation, tech leaders drag down U.S. stock market

Odaily Planet Daily News On Friday, the three major U.S. stock indexes opened lower, with tech stocks falling across the board. The Philadelphia Semiconductor Index has dropped over 20% from its historical closing high, potentially confirming an entry into a bear market. SK Hynix's ADR fell below its issue price of $149 for the first time, and SpaceX's stock price has declined 38% from its peak, with its market cap set to evaporate approximately $1 trillion from the peak. AMD fell over 7%, Intel fell over 6%, and TSMC fell over 5%. Some analysts stated that the ongoing pullback in chip stocks has gone beyond fundamental factors and is more influenced by a shift in capital style and changes in market preferences.

Additionally, Fed Chair Waller's dissatisfaction with inflation during the hearing increased market expectations for rate hikes, and hawkish signals from other Fed officials also heightened market anxiety. Among them, Logan has explicitly called for a rate hike; Schmid warned that the risk of further acceleration in inflation over the coming months remains. On the geopolitical front, the prospects of a US-Iran war remain uncertain, dampening market risk appetite. (Jinshi)