Semiconductor stocks remain the market’s primary driver, but fresh weakness in South Korea is weighing on sentiment. After ending last week near the top of a key support zone, $SOXL has slipped back following a sharp selloff in South Korean technology shares. The Kospi Index fell 9%, while $SKHY recorded its largest one-day decline since listing in 1996 and Samsung also suffered double-digit losses, reflecting a classic “sell the news” reaction after SK Hynix’s U.S. debut.
The weakness has spread across memory-related stocks, including Micron and other storage companies. However, there was some encouraging news as $TSM reported June revenue up 68% year over year, although sequential growth was more modest, highlighting continued strength in AI chip demand.
Geopolitical tensions also remain elevated after renewed military exchanges between the U.S. and Iran. Despite conflicting reports over the status of the Strait of Hormuz, oil has risen only modestly as traders expect diplomatic efforts to limit further escalation.
Markets now face a pivotal stretch with major bank earnings, the latest Consumer Price Index, and testimony from Federal Reserve Chair Kevin Warsh all scheduled within hours of each other. Investors will also be assessing whether strong corporate earnings reflect lasting structural growth or a more temporary cyclical upswing.
Key tickers to watch are $SOXL, $SKHY, $TSM, $MU, and $JPM.
