The semiconductor sector is reacting positively to the Fed’s rate decision
Several industries are today responding to the Federal Reserve’s outsized interest rate cut. The chip sector is having a positive reaction to the policy move, with Arm Holdings PLC (NASDAQ:ARM) and ASML Holding NV (NASDAQ:ASML) shares rallying as investors return to a risk-on attitude.
ARM was last seen 2.6% to trade at $141.99 at last glance, testing a ceilings at the $150 level after conquering the 20-day moving average earlier this month. Shares have pulled back quite substantially from a July 9, record high of $188.75, but still boast an 88.8% year-to-date lead, and even better 168.6% 12-month gain.
Looking to close above its 20-day trendline for the first time since late August, ASML is up 5.9% to trade at $834.57 at last check. The semiconductor stock staged a bounce off its lowest level since January just last week, and is set to close above recent pressure at the $820 level. In the last 12 months, the equity added 10.4%.