Profit-taking in chip stocks weighs on Asia; Nasdaq short at record high

Trading review: current reports, trends, indices, stock prices, bonds, currency, commodities, and analyst recommendations. 06:54. Morning in the markets: the downward trend continues in global markets following sharp profit-taking in chip stocks and a surge in US bond yields. Sharp declines are recorded in Asia, led by South Korea, where the KOSPI is plunging by about 6%. Declines also in Japan, China, and Hong Kong. Oil is climbing for the fourth consecutive day against the backdrop of tensions with Iran. Gold is stabilizing around $4,340 per ounce after recording its sharpest daily decline in nearly a month, as the surge in bond yields reduces the attractiveness of the precious metal. The news this morning: the Donald Trump administration agreed to delay the 50% tariffs on Canada by three days to allow for the continuation of negotiations. In New York, Wall Street futures are stable for now. The focus today will be on the publication of the Federal Reserve meeting minutes, which may provide further clues regarding the disagreements within the central bank and the future direction of interest rates in the USA.

Asia

Trading in Asia is taking place with sharp declines, following the sell-offs on Wall Street and the continued pressure on chip stocks. South Korea is leading the declines, with the KOSPI index falling by about 5.9%, and Samsung and SK Hynix losing more than 7% each. Declines of about 1% are also recorded in Japan, while the indices of China, Hong Kong, and Australia are trading in negative territory. On the positive side, Unitree Robotics stock jumped by 630% on its first trading day on the Shanghai Stock Exchange after raising 6.1 billion yuan in an IPO, becoming the first humanoid robot manufacturer traded in China.

Wall Street

Yesterday, a collapse in chip stocks dragged Wall Street into declines, against the backdrop of concerns about inflation and ballooning government debt. The Nasdaq index fell by 1.1%, the S&P 500 by 0.6%, and the Dow Jones was almost unchanged. The recovery recorded in August in chip stocks lost momentum, as the ETF tracking the semiconductor sector (SOXX) fell by 5%. In the bond market, the yield on the 10-year government bond remained near the highest levels since the beginning of 2025. "The rate of return that investors demand from investments continues to rise," said Florian Ielpo of Lombard Odier.

Tel Aviv

The declines in chip stocks on Wall Street are reaching Tel Aviv this morning through dual-listed stocks. Camtek stock is at a negative gap of about 3%, Tower at 2%, and Elbit stock, with a positive gap of 2.5%, will balance it slightly. Among the quarterly reports to be published today: Clal Insurance, Castro, Asuta, Bet Shemesh Engines, and Azrieli Group. ZIM will report on Wall Street.

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Record positions and insiders

Asset managers and hedge funds have reached in these days the largest short position in history against Nasdaq 100 futures. The net negative position volume is estimated at an unprecedented amount of between 16 and 20 billion dollars. Jason Goepfert, founder of SentimenTrader, noted that while traders are at a historical short peak, company executives themselves are buying shares of their companies at the fastest pace in 15 years. According to data from August 2026, stock purchases by insiders in the Nasdaq 100 index jumped to a 15-year high. Intel CEO Lip-Bu Tan purchased 105,263 shares in August for a total value of about 10 million dollars. Analysts warn that such heavy "short" positions, combined with aggressive insider purchases, leave short sellers vulnerable if the markets rise and force them to close their positions, potentially leading to a violent "Short Squeeze."