Market Rollercoaster! Chip Stocks Lead Rally: Can Bull Run Continue?

$NASDAQ(.IXIC)$ is rising over 1% during trading session.

Market rally is driven by $ASML Holding NV(ASML)$ beats. 📈 Bookings reached €5.4 billion ($6.3 billion) this quarter, compared to €4.9 billion expected by analysts.

In the past four quarters, ASML had missed outlook expectations and plunged sharply on earnings day — this beat was a rare surprise.

Yesterday, chip stocks saw a major pullback, but today ASML pulled them right back up.

The bad part for market now: Trump.

When TACO is anticipated for too long, it stops working — especially in this highly uncertain “Trump era,” where sanctions and tariffs can appear at any time, potentially triggering another round of cascading liquidations in the short term.

Investors can only sigh: the real market god doesn’t predict the candlestick chart, they draw it themselves.

Should we sell calls on recent surging stocks?

If you go long, you worry he’ll reignite a trade war; if you short, you worry he’ll “TACO” the market.

Yesterday’s market swung violently: down at open, up mid-day, then plunged again — a Trump-driven market through and through.

• Before the open, Trump and Bessent both made tough remarks, threatening to escalate the trade war, sending the Nasdaq down over 2% at one point.

• Mid-session, WSJ reported that Trump privately discussed signaling a willingness to ease trade tensions with China — markets immediately rebounded.

• Then, near the close, Trump said that “not buying U.S. soybeans is an act of economic hostility,” sending the market diving again.

It’s been one dramatic twist after another — on Trump’s talking days, neither bulls nor bears are safe.

From $Broadcom(AVGO)$’s recent performance, the price stimulus from OpenAI has already weakened compared with prior weeks. The market is becoming used to — or skeptical of — OpenAI’s ability to sustain this AI bubble. So, could betting against further skyrocket rallies in high-fliers like $Advanced Micro Devices(AMD)$ , $Broadcom(AVGO)$ , and $Oracle(ORCL)$ now be a more cost-effective and certain trade?

The good part: Powell injects liquidity into the market.

What exactly did Powell say last night?

Due to the U.S. government shutdown delaying key economic data, based on current information, the Fed found signs of a cooling labor market, meaning overheating pressures are easing — giving room for potential rate cuts.

Powell also hinted that the Fed could pause quantitative tightening in the coming months, providing strong liquidity support to markets.

While he didn’t explicitly announce a rate cut, the market now prices in a 97.3% probability of a rate cut in October. Powell’s tone seemed mild, but his message soothed bearish sentiment across markets.

Discussion

1. Which narrative will prevail next? Trump tariffs or more liquidity?

2. Will earnings season bring more good news to market?

3. Will you choose selling calls?

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