Nasdaq extends decline to 1%. Chipmakers continue to suffer

Chipmakers and broader tech bounced early today but that move has since reversed and the Nasdaq is under pressure. The index is now at a session low, down 1%.

The selling picked up on a report that Biden could drop out this weekend, though I think that’s somewhat correlation than causation. Certainly, all the political uncertainty in the US is hurting and adding to volatility.

The growing risk is that we see a retracement to the 38.2% level of the rally since April (or below). That would be a further 2.5% drop from here.

Chipmakers have been the generals of the rally since April but they’re flagging. Nvidia rallied 2% early but is now down 0.8% and at the lowes since June 4. AMD is down 3.6% while QCOM and AVGO are down around 2%. ASML was crushed yesterday and is down another 2.2% today and is back to early-May levels.

This article was written by Adam Button at www.forexlive.com.