Semiconductors Soar on Wall Street as Fear Disappears

A Massive Rebound Driven by Hardware Suppliers and Memory

The momentum was led by KLA Corporation (+12.92%, at $2,411.64), Lam Research (+12.65%, at $362.52), and Micron Technology (+11.66%, at $995.87), three key players in equipment and memory. Applied Materials (+11.19%) and Teradyne (+9.73%) also enhanced the movement, confirming that it was the production tool suppliers who drove the whole sector.

The scale of the rebound contrasts sharply with the rest of the US market: the S&P 500 gained only 0.36% at the close, the Nasdaq 0.56%, and the Dow Jones 0.46%. The market environment clearly favored risky assets, with the VIX deflating by nearly 16% to 18.68, indicating a significant reduction in risk aversion. This was possibly fueled by hopes of de-escalation between Washington and Tehran, which brought Brent crude back below $90 a barrel. Conversely, the persistent pressure on US rates, driven by a CPI of 4.2% and a PPI of 6.5%, remains a fragility factor to keep in mind for this traditionally sensitive segment.

What This Movement Reveals About Sector Momentum

For the investor, the technical analysis of the sector calls for caution. The weighted average price remains firmly above its 50 and 200 session moving averages, indicating an underlying upward trend in the medium and long term. The sector's RSI, at 43.9, remains in neutral territory, theoretically allowing room before a potential overheating signal.

However, the weighted MACD is moving below its signal line, indicating a short-term momentum that is faltering despite today's rebound. In other words, the session appears more like a vigorous technical rebound within a consolidation than a confirmed trend acceleration. Caution is advised with upcoming U.S. macroeconomic releases, which will largely determine the sector's ability to turn this rebound into a lasting movement.