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(Original title: US semiconductor stocks plummeted, while GlobalFoundries and Intel soared against the market due to expectations of "localization")

Wednesday (July 17)US stocksIn early trading, the S&P 500 index fell more than 1%, mainly due to technology stocks.NasdaqThe composite index fell more than 2%.

Investors continued to shift from technology stocks to other stocks, and the plunge of the "Big Seven" in technology dragged down the two major indexes. Analysts believe that as the probability of interest rate cuts increases, small-cap stocks that have performed poorly for a long time may be expected to get a boost.

The chip sector of the US stock market weakened significantly, with the Philadelphia Semiconductor Index plummeting 4%. ASML, one of its constituent stocks, fell more than 11%. Before the market opened, ASML expected sales of between 6.7 billion and 7.3 billion euros in its Q3 guidance, which was lower than the market expectation of 7.46 billion euros.

At the same time, the constituent stocksGLOBALFOUNDRIESIt actually rose by nearly 9%.IntelThe latest publishedTrumpThe remarks hit companies related to advanced semiconductors, but were good for these four "American-made" concept stocks.

Former US President Donald Trump recently said that since the entire US chip business was "robbed" and no benefits were received, Taiwan should pay Taiwan "defense costs".

Earlier this year, Trump said on a show, "We used to make all our own chips, and now 90% of our chips are made in Taiwan... Remember this, Taiwan has taken away our business very smartly and cleverly, and we should have stopped it a long time ago."

According to data released by research firm TrendForce in March, in the global semiconductor foundry market in the fourth quarter of 2023,TSMC, Samsung took the top two spots in terms of revenue, and GlobalFoundries ranked third.TSMC's market share reached 61% in the quarter, while Samsung and GlobalFoundries had slightly over 11% and less than 6%, respectively.

Trump has boiled down his economic agenda to low interest rates and low taxes and has said there is a huge drive to get jobs done and bring businesses back to the U.S. His latest choice for running mate, Vance, also supports economic nationalism, arguing that free trade has destroyed U.S. manufacturing.

Earlier this week, Trump was officially nominated as the Republican presidential candidate for the 2024 US presidential election, and most polls show that his approval rating is higher than that of the current President Biden. Analysts say that if Trump returns to power, US chip manufacturing companies such as GlobalFoundries are expected to benefit from it.

In addition, Intel is also promoting its foundry business. It is worth mentioning that Intel announced an investment of $7 billion to build the "world's most advanced semiconductor factory" during Trump's term. At that time, some analysts pointed out that Intel's move was clearly politically pleasing to Trump.