Chip Stocks Rally as US-China Trade Tensions Ease; Tech Sector Eyes Recovery
Semiconductor stocks staged a robust rebound as diplomatic progress between the US and China sparked renewed Optimism across tech markets. The VanEck Semiconductor ETF (SMH) climbed 2.5% to $359.94, recovering from October's steep selloff that saw chipmakers suffer their worst single-day loss since April.
Leading the charge, Advanced Micro Devices (AMD) gained 2.7% while Nvidia (NVDA) rose 2.8%, with Broadcom (AVGO) and Intel (INTC) posting similar gains. The rally extended to semiconductor equipment providers like Applied Materials and Lam Research, both heavily exposed to Chinese markets.
This resurgence comes as trade negotiators signal potential breakthroughs in longstanding disputes that had previously threatened to disrupt global tech supply chains. Memory producer Micron Technology joined the upward movement, though with more modest gains compared to its peers.
