PHLX Semiconductor Index (SOX) posted its largest daily gain (+18.74%) since inception in May 1994
Rally followed Trump’s announcement of a 90-day suspension of reciprocal tariffs (excluding China)
The index is composed primarily of AI and semiconductor-related stocks
Opinion
The tariff suspension sparked a surge of short-term buying in the semiconductor sector, especially among AI-linked names. However, the durability of this policy shift remains uncertain, and the risk of renewed U.S.–China trade tensions could temper sustained optimism.
Core Sell Point
While the policy-driven rebound was powerful, there is a risk it has been overbaked in the short term.
Investors should be cautious of potential near-term pullbacks, especially if trade tensions re-escalate or policy clarity fades.
The Philadelphia Semiconductor Index (SOX) soared 18.74% on April 9 (local time), marking its largest single-day percentage gain since the index was established in May 1994.
The rally was triggered by President Donald Trump’s announcement to suspend reciprocal tariffs for 90 days on all countries except China. The decision was widely interpreted as a step toward easing global trade tensions and immediately lifted sentiment in a market that had been weighed down by tariff-related uncertainty.
The SOX, which is heavily weighted toward AI and high-performance semiconductor companies, emerged as a direct beneficiary of the move. While the sharp rebound delivered a powerful boost to the tech sector, it also raised concerns about potential overheating following a prolonged market correction.
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