Is the US Issuing Another Ban? Semiconductor Stocks Plunge Across the Board, Cryptocurrencies Holding Relatively Steady

The Biden administration is reportedly considering implementing stricter trade restrictions, causing a widespread decline in semiconductor stocks. The S&P 500 index fell by 1.39%, while the tech-heavy Nasdaq index plummeted by 2.77%. Cryptocurrencies, on the other hand, showed relative resilience against the downturn, with issuers announcing the fees for Ethereum spot ETFs, expected to officially launch on 7/23.

The US Considers Implementing FDPR, Semiconductor Market Plummets

According to Bloomberg citing sources familiar with the matter, the United States is considering whether to implement a measure called the Foreign Direct Product Rule (FDPR) in seeking influence with allies. The rule allows the US to control products manufactured abroad, even if these products use minimal US technology.

This move, seen as severe by allies, would restrict Japan's Tokyo Electron Ltd., TEL, and the Netherlands' ASML Holding NV from doing business in China, as these two companies produce crucial chip-making machinery for the semiconductor industry. Sources state that the US is presenting this idea to officials in Tokyo and The Hague, with the likelihood of such action increasing if these countries do not tighten measures against China.

ASML's stock code: ASML plummeted over 12% yesterday, TSMC's ADR stock code: TSM dropped nearly 8%, and NVIDIA's stock code: NVDA fell over 6%.

Ethereum Spot ETF Announces Expense Ratio, Set to Officially Launch on 7/23

Issuers have been gradually disclosing the expenses for the Ethereum Spot ETF, and according to ETF analyst James Seyffart's analysis on Bloomberg, 7 out of 10 funds will enjoy fee waivers. The official launch is expected on 7/23.

Ethereum Spot ETF Expense Ratio Revealed, Set to Officially Launch on 7/23

Cryptocurrencies Resilient Amid Market Downturn, BTC at 64K, ETH at 3,400

Cryptocurrencies show resilience as Bitcoin surged to a high of $66,128 yesterday, currently holding above 64K. Ethereum hit a high of $3,517 yesterday and is now hovering around $3,400.