Chip Stocks Stumble as Gold and Bitcoin Rally
Nasdaq 100 Index futures rebounded after a sharp plunge in chip stocks. Gold rose to a two-week high amid lowered expectations for Federal Reserve rate hikes, while Bitcoin broke through $62,000. Previously decoupled, gold and Bitcoin are now being traded again as similar asset classes, with investors awaiting the earnings season to assess returns on AI investments
With U.S. markets closed on Friday, Nasdaq 100 Index futures rebounded 1.2% in light holiday trading, following a 2% rise in Asian stocks driven by the recovery in shares of South Korean memory giants SK Hynix and Samsung Electronics.
Stocks recovered after two days of sharp declines in chip manufacturers' shares, as investors await the upcoming earnings season to determine whether massive investments in artificial intelligence infrastructure can translate into profits. As chip stocks crashed, their paired-trade counterparts—Bitcoin and gold—surged. Gold prices rose 1.2% to approximately $4,170 per ounce, hitting a two-week high, after money markets scaled back expectations for Federal Reserve rate hikes this year. Bitcoin also climbed significantly, reversing its recent plunge and breaking through the $62,000 mark. Gold and Bitcoin, which had previously diverged sharply, are once again being treated as assets within the same class.
