SMH is trading 1.5% up today, rebounding sharply from a 3% decline on April 28 as investors engage in bargain hunting within the semiconductor sector.
- The ETF is significantly outperforming flat-to-lower major indices as market participants reposition ahead of high-stakes earnings from Meta, Microsoft, Amazon, and Alphabet after the close.
- Sentiment has shifted following yesterday's tech-wide pressure linked to an OpenAI miss, with traders now focused on the upcoming Federal Reserve interest rate decision.
- The move suggests a strategic sector rotation back into chips despite broader market caution and the looming macro catalysts.