Semiconductor shares rebounded after a volatile session, with leveraged chip funds closing far above intraday lows, a technical signal suggesting bullish momentum may continue Traders are focusing on supply concerns after Samsung workers prepared for a strike, boosting optimism for rival memory producers such as $MU and $SNDK Markets also reacted positively after several oil tankers exited the Strait of Hormuz, increasing hopes that energy flows could normalize and reduce inflation pressure Lower oil prices pushed bond yields down and supported equities
Investors are also betting that upcoming earnings from $NVDA will surpass elevated expectations Momentum traders continue buying chip stocks ahead of results despite recent examples of post earnings declines Analysts warn that earnings remain a major risk event because expectations are already extremely high Broader sentiment improved further after reports that SpaceX may release public offering documents soon, adding excitement across speculative growth sectors
Retail earnings added to the positive tone $TGT posted results above informal forecasts while $LOW delivered numbers largely matching expectations Meanwhile, Federal Reserve minutes are due later today, and policymakers continue signaling that another rate increase remains possible if inflation pressures persist Traders remain cautious because geopolitical tensions and elevated valuations could reverse sentiment
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