Sizzling semiconductor trade at risk of cooling - and stalling US stocks rally

A sharp run-up in semiconductor shares has helped fuel the U.S. stock rally, but the move is now raising concerns that the market is overheated. Investors are beginning to position for a pullback, pointing to stretched sentiment and potential near-term volatility in the sector.

Analysis

A sharp run-up in semiconductor shares has helped fuel the U.S. stock rally, but the move is now raising concerns that the market is overheated. Investors are beginning to position for a pullback, pointing to stretched sentiment and potential near-term volatility in the sector.