Markets: the flurry of deals that revives the American semiconductor industry
In September, global stock markets experienced an unexpected rebound. The S&P 500 rose by 3.5%, and the Nasdaq by 5.6% — their best performances in fifteen years. Behind these numbers, a wave of strategic deals in the semiconductor sector boosted the markets, analyzes Mary-Sol Michel of Swiss Life Private Management.
The Combined Effect of the Fed and American Tech
This unusually favorable September is primarily due to the Federal Reserve's change in tone. In response to a slowing job market, Jerome Powell initiated a 25 basis point cut in interest rates. The result: relief for investors, especially given that US economic growth remains resilient.
However, the momentum is mainly driven by a series of spectacular moves in the tech sector:
- The US government acquired 10% of Intel's stock, in line with the Chips Act, to support the domestic industry.
- Nvidia acquired 4% of Intel and invested $100 billion in OpenAI.
- OpenAI, in turn, acquired 10% of AMD after signing a $300 billion contract with Oracle.
These operations triggered a widespread stock market surge in the sector.
Markets Remain Strong Yet Cautious
For Swiss Life GP, the rise might take a pause after the significant uptrend initiated since April. A technical correction would be healthy before repositioning.
However, Mary-Sol Michel remains constructive over a three-month horizon, banking on the earnings season in the US and the dollar's decline, which benefits exporters.
In contrast, France lags behind: the underperformance of the CAC 40 is explained by the political climate and a slowdown in activity. Even French debt is seeing its yield spread with Germany widen.
In a global environment dominated by technology and aggressive industrial policies, Europe is struggling to keep up with the American pace.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
