Chip stocks drive gains 07/01/2025

HOT stories for today

 

Stocks on the move:

• SolarEdge Technologies (SEDG) +7%: The company announced its fourth round of layoffs within the past year, cutting an additional 400 employees.
• American Airlines (AAL) +3%: TD Cowen upgraded the stock and raised the price target by $8. Other analysts have also issued recent upgrades.
• MicroStrategy (MSTR) +11%: The Bitcoin-focused company unveiled plans to raise $2 billion through a perpetual preferred stock offering as part of Michael Saylor’s broader strategy to secure $21 billion in equity and an equal amount in debt to acquire more Bitcoin.
• U.S. Steel (X) +8%: U.S. Steel and its prospective Japanese partner, Nippon Steel, have taken their case to court to defend a proposed $15 billion merger that was blocked by the Biden administration over national security concerns.

Today’s action

• Asia-Pacific markets climbed on Tuesday, following a surge in U.S. tech stocks the previous day. Semiconductor shares, including Nvidia (NVDA), rose sharply after Foxconn reported record fourth-quarter revenue. Taiwan Semiconductor Manufacturing Company (TSM) hit a new high, extending gains from Monday. In Japan, the Nikkei 225 jumped 2.49%, leading the region, while the Topix index added 1.32%. European markets are expected to open lower as investors focus on eurozone inflation data.
• Meanwhile, U.S. stock futures edged down Tuesday morning, with S&P 500 futures slipping 0.06%, Nasdaq 100 futures down 0.17%, and Dow Jones Industrial Average futures losing 33 points, or less than 0.1%. Key economic data is due this week, including Tuesday’s JOLTS report, Wednesday’s ADP private payrolls, and Friday’s December nonfarm payrolls. The New York Stock Exchange will be closed Thursday to honor the late former President Jimmy Carter.

Wahtclist: NVDA, TSM, ULTA, SEDG, X, FUBO, DIS, MSFT

Bitcoin
 

• Bitcoin surged past the $100,000 mark as the first full trading week of the year began, gaining 4% to reach $102,250, according to Coin Metrics. The broader crypto market, tracked by the CoinDesk 20 index, rose 2.5%. Both bitcoin (BTC) and ether (ETH) are coming off their best weeks since early December, while Solana (SOL) recorded its strongest performance since late November.
• “We’re in a bullish environment, with traders leaning toward risk-on strategies as we enter the new year,” said Marko Jurina, CEO of crypto swaps platform Jumper.Exchange. He noted that January is historically a positive month for crypto, with six of the past 10 years delivering gains. The certification of Trump’s election win has also contributed to the upward momentum.
  Watchlist: Bitcoin: 91 000-108 000, Ethereum: 3100-3800, Solana: 200-222

Forex
 

• The Japanese Yen (JPY) hit a fresh multi-month low on Tuesday amid doubts over the Bank of Japan's (BoJ) potential rate hikes. However, the currency rebounded against the US Dollar (USD) as concerns about market intervention by Japanese authorities resurfaced. Additionally, geopolitical tensions and uncertainty around President-elect Donald Trump's tariff plans have driven safe-haven flows into the yen.
• Meanwhile, the widening US-Japan yield gap is expected to limit any significant appreciation in the JPY. In Europe, the EUR/USD pair extended its gains for a third consecutive session, hovering around 1.0400 during Tuesday’s Asian trading hours. The pair’s rise is mainly driven by a weaker USD, which is retreating ahead of key US economic data, including the ISM Services PMI, due later in the North American session. Looking ahead, traders are eyeing the Eurozone’s preliminary December inflation data, along with the release of the Federal Reserve's December meeting minutes on Wednesday, which could provide further insight into future policy moves.
  Watchlist: EUR/USD: 1.0200-1.0460, USD/JPY: 155-158.50

Basic Materials
 

• Gold (XAU/USD) edged higher during Tuesday’s Asian session, extending its rebound from the $2,615 support zone. Safe-haven demand grew amid concerns over President-elect Donald Trump’s tariff plans, which could fuel inflation. Additionally, ongoing geopolitical risks, including the prolonged Russia-Ukraine conflict and tensions in the Middle East, supported gold’s appeal. However, gains were capped by the Federal Reserve's hawkish stance and rising US bond yields, with traders remaining cautious ahead of key US economic data, including the FOMC minutes and Nonfarm Payrolls (NFP) later this week.
• West Texas Intermediate (WTI) crude oil slipped for the second consecutive session, trading near $72.90 per barrel during Asian hours. Despite the decline, rising energy demand driven by colder weather and China’s economic stimulus measures offered some support. Oil prices could also find a floor as OPEC’s December output dropped, led by supply cuts from the UAE. Meanwhile, the Biden administration’s plans to impose additional sanctions on Russian oil exports are expected to weigh on the market.
  Watchlist: GOLD 2530-2750, US Oil: 65.00-74.50

The TEFS Analyst team wishes you a successful day !