Focus on the semiconductor earnings, which have experienced overseas turmoil = This week's US stock market.

October 21, 2024 10:41 AM GMT+9 (excerpt)

In the coming weeks, the focus in the US stock market will be on the earnings of semiconductor-related stocks. Semiconductors are used in a wide range of products, making the performance and stock prices of related companies important clues to understand economic and market trends.
The semiconductor industry has been at the center of the artificial intelligence (AI) boom this year, and the stock price of major players like Nvidia has surged.
Matt Maley, Chief Market Strategist at Miller Tabak, emphasizes the importance of semiconductor stocks holding up. He says, "It is crucial for these stocks to remain strong, as any decline could weigh on the entire market."
The Philadelphia Semiconductor Index (SOX Index) surged by over 40% in the first half of this year but has since stalled, currently up about 25% year-to-date. In contrast, the year-to-date increase in the S&P 500 Index (.SPX) is at 22.5%.
Semiconductor stocks and related equipment stocks account for 11.5% of the S&P 500 Index. Nvidia alone represents 6.8% of this weight.

Overseas, on the 15th, ASML, the largest high-tech company in Europe and a semiconductor manufacturing equipment manufacturer in the Netherlands, announced that their revenue and orders for 2025 fell below expectations, causing semiconductor stocks to plummet in the USA as well. However, on the 17th, Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, announced higher-than-expected earnings, leading to a broad rebound in semiconductor stocks.