MicroSectors™ Gold -3X Inverse Lvrgd ETN

$Gold.com(GOLD.US)$iShares Semiconductor ETF(SOXX.US)$AMD(AMD.US)$NVIDIA(NVDA.US)

📉 Why Chip Stocks and Gold Are Sinking Together

Semiconductor stocks and gold normally move independently. Currently, both are dropping for the same shared macro reason.

Yes. Shifting monetary policy and changing market narratives are hitting both assets at once.🫣

Here is what is driving today’s sell off.

1️⃣ AI Sentiment Shift.

Semiconductor stocks plunged after Anthropic CEO Dario Amodei called for slower progress in frontier AI capabilities. Sam Altman, Demis Hassabis and Elon Musk also backed the view.

The SOXX ETF fell 5.5 percent. Micron dropped 6.2 percent and AMD lost 6.5 percent.

2️⃣ Rate Hike Pressure.

Next, Gold fell 1.7 percent as markets priced in an 89 percent chance of a Fed rate hike this Wednesday.

Hot CPI numbers and crude oil rising above 103 dollars a barrel pushed expectations higher.

3️⃣ Fundamentals Remain Strong

Reported earnings for major chipmakers are still growing and accelerating. The drop is mostly investors reducing risk ahead of the Fed decision and upcoming earnings releases.

📊See the full picture in the infographic.

Not financial advice . Please do your own DD😁.

🇺🇸 Fed Decision This Wednesday - What It Means for Singapore Investors

Here is the simple, clear breakdown from the infographic.

The Fed’s rate call this Wednesday (US Time) will move Singapore banks, gold and S-REITs.

If we look past the headline number the markets may have already price in a 25bp hike. The far bigger question is what the Fed signals about rates going forward ( Very important )😀.

🏦 Singapore Banks

A rate hike is not automatically bad. Higher rates can help stabilise net interest margins. Strong loan growth and fee income add extra support. DBS, OCBC, and UOB should stay relatively resilient.

🪙 Gold

Short-term headwinds remain. Higher US yields and a stronger dollar create pressure. But over the longer run, inflation, geopolitical risks, central bank buying, and fiscal concerns should keep supporting gold.

🏢 S-REITs

Higher bond yields weigh on valuations and refinancing costs. The recent pull back and selective REITs with strong balance sheets, mostly fixed-rate debt and sustainable payouts are starting to look attractive.

🎯 What I Am Watching

Ignore just the 25bp decision. Track US 10-year yields, the US Dollar and SORA because those three will tell you far more.

👉 See the full infographic for scenarios and key levels to watch Wednesday night.

Bottom line: Don’t trade the headline. Trade the shift in expectations.

Not financial advice. Please do your own DD.