Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
COMPARTIR
Markets collectively decided that the selloff in semiconductors had gone on for long enough earlier this week, as dip buyers stepped up to the mark on Monday, killing the downward momentum that has plagued the sector since the end of June. Buy side pressure overwhelmed the books completely the following day, pushing a number of companies to double-digit gains – companies that had been on the other side of the equation just days prior. SanDisk (SNDK) and SK Hynix (SKHY) both surged 14% on Tuesday; Micron (MU) and Western Digital (WDC) were not far behind with 12% rises of their own; Seagate (STX) gained 11%, while AMD and Intel (INTC) both closed yesterday’s session 8% higher. The euphoria spread to Asian markets early this morning, pushing SK Hynix on the South Korean stock market to a 9% rally and lifting the wider Kospi index 5.5% higher within the first hour of the opening bell. Over in Japan, the Nikkei 225 showed a little more restraint, but nevertheless rapidly added 2% to its tally as trading got underway. How long the rally will last is anyone’s guess, but for the time being semiconductors, and particularly memory stocks, are back on the menu. The broad move higher comes ahead of major earnings reports this week and the next, including Alphabet (GOOG) and Tesla (TSLA) later today. Both companies will undoubtedly provide updates on their latest AI ambitions and new infrastructure requirements, which will send a clear message to chipmakers about what to expect in terms of demand over the coming months. If the major tech companies continue to push for larger data centres and greater computing power, the long-term outlook for semiconductors will be confidently reinforced.
Cryptocurrencies may be undergoing a momentum shift of their own. Yesterday, Bitcoin closed at its highest level since early June at $66,500 per coin. The wider crypto sphere is likewise attempting to halt its endless slide into irrelevancy which has dominated the industry since the October 2025 peak. While risk appetite has returned somewhat this week, lifting precious metals by the same token, cryptocurrencies can point to a number of specific reasons as to why the field can afford to be cautiously optimistic. The first is that Treasury Secretary Scott Bessent told viewers in an interview on Tuesday that the Clarity Act was “on the 1-yard line” to pass through the US Senate. The bold claim was received with open arms by the crypto space as a whole, including companies such as Coinbase (COIN) and Circle (CRCL), which rose 9.6% and 8.6% respectively upon hearing the news. Furthermore, BlackRock CEO Larry Fink made some very interesting comments last week, stating that the crypto markets had been carrying far too much leverage, which has now been washed out, leaving cryptocurrencies in a more stable position than the one previously occupied. Other commenters have said much the same; the catastrophic fallout from last October’s record high was indeed a result of too much leverage, but according to Coinglass and other sources, much of this leverage has since been removed from the market. Institutional flows are also cause for jubilation. Bitcoin ETFs suffered horrendous outflows in June, but the trend abruptly reversed last week, which saw over $700 million in inflows instead. Crypto bros could do with some good luck after the past ten months of dismal price action.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
Reviewed by RADEX MARKETS
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