Strong Employment Data Shakes Chip Stocks

NVDA experienced a 7.9% decline in its latest close, with its RSI approaching oversold territory at 31.5. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. The stock is trading below its 20-day and 50-day moving averages, negatively impacting the technical outlook. Strong employment data could increase rate hike concerns, putting pressure on growth stocks. However, the oversold territory and low price levels may trigger a short-term buying rebound, suggesting that while the downtrend is pronounced, it may be limited.

AMD shares fell 7.1% in the last 24 hours, closing at $476.34. While the RSI has entered oversold territory at 29.7, the MACD continues to give a sell signal at -7.19. The price is trading well below both the 20-day simple moving average of $519.92 and the 50-day average of $514.08. Strong employment data has reduced expectations for interest rate cuts, increasing selling pressure in the chip sector. The short-term downtrend is expected to persist, though oversold conditions could trigger some buying interest.

Strong employment data could fuel rate hike expectations, potentially pressuring growth stocks. Although INTC's RSI at 31.5 is approaching oversold territory, the price trading below both its 20-day and 50-day moving averages indicates short-term weakness. The MACD line remaining below the signal line and in negative territory suggests continued bearish momentum. A 5.5% decline over the past 24 hours confirms intense selling pressure. Therefore, further downside movement is expected in the near term.

The news headline indicates that strong employment data has reinforced expectations of interest rate hikes, putting pressure on chip stocks. Although TSM stock has lost 5.3% in the last 24 hours and its RSI has fallen to 32, approaching oversold territory, the MACD line remains below the signal line, and the price is trading below both the 20-day and 50-day moving averages, confirming a short-term bearish trend. Therefore, selling pressure is likely to persist over the next 1-3 days.