Taiwan Futures Night Session Falls 799 Points; Analysts Say Short-Term Volatility Intensifies

(Central News Agency reporter Zeng Renkai, Taipei 10th) The rebound in US chip stocks stalled, with the Philadelphia Semiconductor Index falling more than 8% at one point on Tuesday. Taiwan stock index futures in the night session plunged over 1,600 points at one point, eventually closing down 799 points, or 1.79%, at 43,878 points. Analysts believe short-term volatility in the Taiwan stock market will intensify, with the key focus being the upcoming US May CPI (Consumer Price Index).

Dragged down by last Friday's US stock market crash, the Taiwan stock market experienced a 'Black Monday' this week. Monday's morning session saw a sharp drop of nearly 2,700 points, the largest intraday drop in history, before the losses quickly narrowed. On Tuesday, the Taiwan stock market rebounded strongly by 1,201.66 points, closing at 44,704.44 points, recovering most of the lost ground. However, US tech stocks continued to fluctuate.

The market is watching the changing situation in the US-Iran conflict. Wall Street closed mixed on Tuesday. The Dow Jones Industrial Average rose 86.10 points, or 0.17%, to 50,872.11 points. The S&P 500 fell 19.08 points, or 0.26%, to 7,386.65 points.

A fresh wave of selling hit US tech stocks. The tech-heavy Nasdaq Composite Index tumbled 250.84 points, or 0.97%, to 25,678.82 points. The Philadelphia Semiconductor Index fell 248.88 points, or 1.93%, to 12,657.81 points.

In individual stocks, Apple, which just held its WWDC, fell $10.99, or 3.64%, to close at $290.55. Chipmaker Marvell Technology plunged $21.97, or 7.61%, to close at $266.88. Nvidia edged down $0.45, or 0.22%, to close at $208.19. TSMC ADR bucked the trend, rising $1.12, or 0.26%, to close at $427.92.

After the shock of Black Monday this week, the Taiwan stock market rebounded quickly on Tuesday. According to analysis by KGI Securities, the main trigger for this correction was the better-than-expected US May employment report, which raised market concerns that the Federal Reserve's policy might tighten. The next focus points include the US May CPI (Consumer Price Index) released on June 10, and the FOMC meeting next week, which will be chaired for the first time by new Fed Chair Walsh. These will be key factors influencing market sentiment.

KGI Securities believes that short-term volatility in the Taiwan stock market will increase, but the AI fundamentals have shown no signs of actual weakening so far. Whether it's the capital expenditure scale of cloud service providers (CSPs), the visibility of AI server orders, or the demand for advanced semiconductor processes and advanced packaging, all remain on a strong expansion trajectory. Since there is no structural reversal in fundamentals, KGI Securities interprets this pullback as an adjustment in positions and sentiment, and the medium-term bullish trend for the Taiwan stock market remains unchanged. (Editor: Lin Jiaxian) 1150610