July Jobs Miss Sends SOXQ Surging 3% as Rate-Hike Odds Plunge
SOXQ has more than doubled off its 52-week low of $43.11 on light trading volume (0.4× avg).
Summary
A surprisingly weak July jobs report — payrolls fell 23,000 against an 80,000 gain estimate, with sharp downward revisions to June — is driving a powerful rally in semiconductor stocks. The Invesco PHLX Semiconductor ETF (SOXQ) is up more than 3% in premarket trading as Treasury yields slide and the probability of a September Fed rate hike collapses to around 40% from 55%. The data, showing slowing wage growth and a steady 4.1% unemployment rate, reinforces the narrative that the Fed may be done tightening, which is particularly bullish for rate-sensitive growth sectors like semiconductors. This follows a pattern of SOXQ moving sharply on macro data: the ETF rallied over 2% on June 11 after a strong jobs report, and fell 4% on July 7 amid rate concerns. Today's move is the largest of the three, reflecting a clear shift in rate expectations.
At the time of this announcement, SOXQ was trading at $98.00 on NASDAQ in the Technology sector. The 52-week trading range was $43.11 to $115.34. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.