VIX Spikes 9% as Fear Returns to Wall Street 📌 Nvidia Down 3.5%

Futures on CBOE Volatility Index (VIX) are rising almost 9% today, reacting to the broad sell-off across the US equities, triggered by rising treasuries yields, profitability and seasonality 'September stock market weakness'. Despite the first, positive reaction to the ISM Manufacturing report, markets are falling again, pressured by technology sector and Magnificent 7. Nvidia loses almost 3.7%, while Alphabet slides 2.5%.

Taiwan Semiconductor (TSM.US) informed that the company have received notification from the US government that VEU authorization for TSMC Nanjing will be revoked effective December 31st. Investors reacted with selling stocks, seeing the US move as a signal that Nvidia may face problems with selling AI chips to China.​​​ The decision will hit TSMC older, and less advanced chips. The company shares are down almost 2% today.

• The United States has revoked Taiwan Semiconductor's permission to freely ship critical equipment to its main Chinese chipmaking base, potentially limiting production capabilities at the older-generation facility.

• American officials recently informed TSMC of their decision to terminate the Taiwanese chipmaker's so-called validated end user, or VEU, status at its Nanjing facility.

• The action is similar to steps taken by the United States to revoke VEU designations for facilities in China owned by Samsung Electronics Co. and SK Hynix Inc. The waivers are set to expire in approximately four months.

Source: xStation5

Source: xStation5