LIVE MARKETS-Will Nvidia earnings pull up the SOX?

ReutersMay 28, 2025 1:03 PM

U.S. equity index futures slightly green: Nasdaq 100 up ~0.2%
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WILL NVIDIA EARNINGS PULL UP THE SOX?

Nvidia NVDA.O investors will look for definitive answers on how much U.S. chip curbs on China will cost the company when it reports results after the close on Wednesday, even as a pullback in other regulations is expected to open up new markets.

The Philadelphia semiconductor index .SOX, which topped in July of last year, well ahead of the Nasdaq composite's .IXIC December peak, has staged an impressive rally off its early April trough:

That said, on May 14 the SOX hit an intraday high of 4,996.10, which put it just shy of the 23.6% Fibonacci retracement of its October 2022-July 2024 advance, which is now acting as resistance, at 5,025.12.

The index has since backed away and ended Tuesday at 4,861.09, which put it essentially right on its 200-day moving average (DMA) at 4,863.55, and still down around 18% from its record highs.

Coming out of the NVDA report, if the SOX can overwhelm the 5,025-5,265 area, including the resistance line from its high, it can suggest a breakout that would ultimately refocus the index on its 5,931.83 July intraday peak.

On weakness, the large May 12 gap requires a decline to 4,515.76 for a fill. The 50-DMA ended Tuesday around 4,355.

Of note, coming out of the market's April bottom, chip stocks have been outperformers, and bulls look for this momentum to continue. The SOX finished Tuesday up more than 36% from its April 8 close, while the Nasdaq composite .IXIC has advanced about 26% from its April 8 close.

Meanwhile, NVDA has been even stronger. Its low close was on April 4, just ahead of the index lows. The stock has now rallied about 44% from its April 4 close, and 41% from its April 8 close. Within the SOX index, chipmakers have been outperforming equipment makers:

(Terence Gabriel)

EARLIER ON LIVER MARKETS:

HAVE REDUCED BETS ON BOE CUTS GONE TOO FAR? CLICK HERE

POSTCARD FROM MADRID: BANKS' MOOD IS "POSITIVE" CLICK HERE

DEFENCE, GERMAN STOCKS CHARGE AHEAD CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES DIP, STELLANTIS PICKS CEO CLICK HERE

NVIDIA EARNINGS TAKE THE SPOTLIGHT CLICK HERE

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