Chip Stocks Come Under Pressure
Monday’s U.S. stock market session was marked by unusually low trading volume, with the S&P 500 ETF recording just over 18 million shares compared with nearly 45 million the previous Monday. Stephen Whiteside cautions investors against drawing firm conclusions from such thin trading and recommends waiting for confirmation. Tuesday’s futures are volatile, with technology and semiconductor stocks under pressure, while the major indexes face important technical levels. Canadian investors should also assess opening prices and bid-ask spreads before placing orders following Monday’s market closure.
The semiconductor sector is showing particular weakness, with the SMH ETF and five major chip stocks on sell signals. Gold and silver pulled back, the U.S. Dollar Index continued higher, and bond prices rose as yields declined without yet generating a sell signal. Energy stocks remained strong, while Adobe and Microsoft face potential competitive pressure from AI-generated software alternatives. The VIX remains on a sell signal, suggesting options traders have not become significantly more concerned. With no major pre-market economic releases, Tuesday’s direction will depend heavily on earnings reports and price action.
Stephen Whiteside
Tuesday, October 13, 2026
