Analysis: Rate Hike Expectations Amplify Capital Rotation, Tech Leaders Lead Decline in U.S. Stock Market

Odaily reported that the three major U.S. stock indexes opened lower on Friday, with technology stocks broadly declining. The Philadelphia Semiconductor Index has fallen more than 20% from its historical closing high, on track to confirm an entry into a bear market. SK Hynix ADR fell below its issue price of $149 for the first time, and SpaceX's stock price dropped 38% from its peak, resulting in a market value loss of approximately $1 trillion from its peak. AMD fell over 7%, Intel dropped over 6%, and TSMC declined over 5%. Some analysts stated that the persistent pullback in chip stocks has gone beyond fundamental factors, being more influenced by capital rotation and a shift in market preferences.

Additionally, Fed Chair Warsh's dissatisfaction with inflation during the hearing has amplified market expectations for rate hikes. 'Hawkish' signals released by other Fed officials have also exacerbated market tensions. Specifically, Logan has explicitly called for a rate hike, while Schmid warned that the risk of further accelerating inflation in the coming months remains. On the geopolitical front, the prospect of a U.S.-Iran war remains uncertain, dampening market risk appetite. (Jinshi)