SK Hynix's shares have broken below multiple short-term moving averages and gapped down below the 50-day moving average, indicating short-term funds are still retreating and selling momentum is being released in a concentrated way, weakening the short-term trend.
AMD and other CPU stocks are dragged down by the broad semiconductor sector downturn; despite market rumors of price hikes being positive for earnings, sector pressure keeps the shares under pressure.
With the Saudi airport attacked by Houthis, security challenges at the Red Sea and Hormuz, and the Russia-Ukraine war continuing without even an energy-facility truce holding, geopolitical conditions in the Middle East and Eurasia have not improved but worsened, which is not good for financial markets.
Rising bond rates increase borrowing costs for computing-power investment, lengthening hardware payback from 3-4 years to 5-6 years and raising funding pressure on cloud giants; if cloud giants stop increasing capex in an upcoming earnings season, the AI trade could correct sharply.