NDX sinks -3.5% as chip stocks Intel, Sandisk, AMD lead chip sell-off
US equities ended October sharply lower on Friday (30 Oct), as disappointing earnings fuelled concerns over a potential AI bubble.
The $NASDAQ 100(NDX)$ fell -3.5%, marking its worst session since June and lifting the Nasdaq 7x Short DLC (W5BW) by around +24.5%, while the Nasdaq 7x Long DLC (MFVW) fell by a similar magnitude.
$Intel(INTC)$ led the decline, plunging -28.5% after its results missed expectations. The Intel 3x Short DLC (JRYW) surged +84.4%, while the Intel 3x Long DLC (9DWW) fell by similar magnitude.
Other chip stocks covered by DLCs also came under pressure. $SanDisk Corp.(SNDK)$ , $Advanced Micro Devices(AMD)$ and $Micron Technology(MU)$ declined -13.5%, -10.9% and -5.3%, respectively.
Attention now turns to the next round of earnings, with Palantir and Apple expected to report after the US market closes on 2 Nov, followed by AMD on 3 Nov.
For investors positioning for a rebound, Long DLCs provide leveraged exposure to upward price movements. Conversely, for those who expect bearish momentum to continue, Short DLCs offer inverse exposure to benefit from pullbacks in price.
US Stock DLCs offer up to 5x daily leveraged long or short exposure to US underlyings during SGX market hours, allowing investors to respond to market-moving developments outside US trading hours.
View the full list of DLCs here.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
