Weak Jobs Data Sparks Rally in Chip Stocks, SOXQ Jumps 2.5%
SOXQ has more than doubled off its 52-week low of $48.51.
Summary
September payrolls came in at just 29K vs 90K expected, with August revised down to 133K. Unemployment ticked up to 4.2%. The soft data pushed rate-hike odds down to 17% and sent Treasury yields lower. Chip stocks are leading the premarket rally, with SOXQ up more than 2.5%. This follows a weak July jobs report in August that also pressured the ETF. The move reflects renewed hopes for a Fed pause, which benefits high-multiple semiconductor names.
At the time of this announcement, SOXQ was trading at $103.67 on NASDAQ in the Technology sector. The 52-week trading range was $48.51 to $115.34. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.