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2026-11-05 21:08:29
[US Stock Futures Diverge, Semiconductor Sector Under Pressure, but Rotation Remains Limited to Technology] ⑴ US stock index futures diverged on Thursday, with investors withdrawing funds from semiconductor stocks for the second consecutive trading day. The market is no longer focused on the initial easing rebound after the midterm elections, but rather on assessing the potential impact of a Democratic-controlled Congress on the market. ⑵ Chip manufacturers and memory chip stocks continued to be under pressure due to concerns that a full Democratic control of Congress could lead to stricter regulations on US data centers, thereby dragging down semiconductor demand. ⑶ In addition, disappointing market reactions after Arm and Qualcomm released their earnings reports exacerbated the selling pressure. ⑷ However, traders cautioned against interpreting the overall market trend as a fundamental shift in investor preferences. ⑸ JPMorgan's equity derivatives team believes that this sector rotation is more driven by market positioning adjustments than a genuine fundamental change. ⑹ Christina Jones of JPMorgan stated in a report that they have not yet seen clients massively shifting to long positions in other sectors or chasing previously underperforming stocks; the real rotation is limited to the technology, media, and telecommunications sectors. (7) Jones also pointed out that investors clearly prefer to hold high-quality large-cap stocks, especially companies with clear financing channels and computing resources, such as some hyperscale technology companies.
