Semiconductor Selloff Driven by Samsung Crash, Nvidia Earnings Loom
The semiconductor sector is experiencing selling pressure after Samsung Electronics Co Ltd (OTCPK:SSNLF) stock crashed in South Korea overnight, falling 8.7%. The sell-off was a 'sell the news' reaction due to disappointment with Samsung's shareholder return plan, which had an unprecedented 90T - 100T won for shareholder payout but lacked an immediate, aggressive share buyback or timeline for Treasury stock cancellations.
South Korean retail traders took advantage of the dip and bought Samsung stock. Meanwhile, Nvidia (NVDA) earnings are set to be released Wednesday after the close, while Marvell (MRVL) earnings will follow on Thursday. The Canadian government is suspending trade talks with the US, which will impose a 50% tariff on $28B in goods starting tonight.
The Treasury has a $1T general account fund that could be used for bond buybacks, giving it significant firepower to direct the markets. However, investors are increasingly concerned about the national debt and potential debasement of the dollar, driving interest in gold and bitcoin.