The anti-China rhetoric likely will continue till elections. The Biden administration wants further curbs on exports, and Trump wants Taiwan to pay for protection….
The markers opened weak with the S&P 500 down 1% and the tech heavy NASDAQ Composite (COMP) down 1.75%. The rhetoric will likely not let up till the elections as both parties will try and outdo each other in jingoism. ASML (ASML) was beaten down 10% in spite of great results, reaffirming guidance and bookings. With the ongoing rotation to interest sensitive cyclicals, this pre-election noise will only add to tech volatility. The COMP is now down about 3% from its high and will likely correct further, we saw that big drop of 2% last Thursday, I would expect to see more of these. I’m not going to buy the tech dip, either wait it out or even take more money off the table on good days.
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