Europe follows declining trend in chip stocks

Wed, 09/04/2024

by Ellie LeTu

Source: WSJ

• European blue-chip stocks dropped

  • Stock indices Euro Stoxx 50 Stoxx Europe 600, The Netherlands AEX, Switzerland’s SM France’s CAC 40, Germany’s DAX, Italy’s FTSE MIB and Spain’s Ibex all declined at about 1%.

  • European companies within the semiconductor supply chain experience similar decline.

• The Nvidia falling domino effect

  • Fall in tech stocks started with Nvidia a 9.5% drop yesterday (09/03/24).

  • Global fear of recession

• High market volatility

  • VIX is high, expectation of turbulence in the market.

  • US manufacturing dominance, including chip production, raises investors concerns.