Traders Eye Semiconductors for Black Friday Gains on Eased U.S.-China Chip Curbs

Semiconductors Poised to Lead Black Friday Trading

While the day after Thanksgiving often brings subdued market activity, semiconductor stocks could take center stage in today’s shortened session. News of softened U.S. restrictions on China’s chip industry has positioned this sector for potential gains, building on Thursday’s global rally in chipmakers.Ad

Could Softer U.S. Sanctions Fuel Further Semiconductor Gains?

Reports that the Biden administration is reconsidering the severity of its chip-related export curbs to China have created a bullish narrative for the semiconductor sector. With the proposed measures targeting fewer suppliers to Chinese tech firms and sparing key companies like ChangXin Memory Technologies, investors are optimistic about reduced revenue risks for major players.

Thursday saw significant moves in global semiconductor stocks, with ASML gaining 2.9% and Tokyo Electron surging 6.7%. These performances signal strong market sentiment heading into today’s session. U.S. semiconductor giants, including Nvidia, Advanced Micro Devices (AMD), and Lam Research, may see heightened interest as traders react to the news and position themselves for potential short-term gains.

Why Today’s Session Could Be Active for Semis

Despite a traditionally quiet Black Friday, semiconductor stocks could dominate today’s trading action as investors continue to digest the implications of a more measured U.S. policy approach. The prospect of mitigated revenue losses for chip equipment manufacturers and sustained demand from Chinese fabs creates a compelling case for sector outperformance.

With U.S. markets closing early, traders looking to capitalize on this positive sentiment may act swiftly, leading to increased volatility and trading volumes in semiconductor names. The momentum from Thursday’s global rally could carry into today’s session, making semiconductors the hot stock pick for opportunistic traders.

Market Forecast

Semiconductor stocks are likely to outperform in today’s abbreviated session, fueled by Thursday’s encouraging policy developments. Traders should watch for potential upside in U.S. semiconductor giants and equipment makers as optimism over relaxed export curbs continues to drive interest. While the shortened trading window may limit large-scale moves, semiconductors remain a bright spot in an otherwise subdued market environment.

More Information in our Economic Calendar.