📊 US Taiwan Deal Steadies Markets

Good Morning Investors,

Policy and trade developments remain central to the outlook. Recent progress on US Taiwan chip cooperation and ongoing tariff discussions are lifting longer term investment expectations in semiconductor manufacturing, but the introduction of new tariff risks keeps uncertainty elevated.

Memory supply constraints and shifting artificial intelligence infrastructure spending are creating uneven signals across hardware and software names. The takeaway is constructive but cautious.

A chip led rotation is supporting small cap sentiment for now, yet tariffs, supply bottlenecks, and Federal Reserve headlines could quickly reintroduce volatility. Selectivity and awareness of policy risk remain critical even as the rally gains traction.

Matthias Schneider
Editor at Analytica Investor