The Trump Administration plans to announce investment and trade-related restrictions targeted at China at the end of June.
“We see virtually no upside coming out of those dates and large downside. The best that can happen is nothing happens and the can gets kicked down the road or something similar. There is a virtual certainty that US tech companies will be negatively impacted and that semiconductor companies will be front and center in that impact,” said Maire, according to Barron’s.
Aggressive traders looking to play a June slump in semiconductor stocks can consider the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS). SOXS attempts to deliver triple the daily inverse returns of the PHLX Semiconductor Index.
For more information on the tech segment, visit our technology category.