China’s DUV Breakthrough Is the New Problem Before the Old One Ends
Yesterday’s Mayday call worked. Trump paused the Iran campaign over the weekend, oil gapped down hard, and markets got a moment to breathe. But relief is never permanent. Right as the Iran story eased, China’s DUV lithography breakthrough hit chip stocks from an entirely different direction.
WTI gapped down to $83.52 and Brent to $86.65 after the US held off attacking Iran for two straight nights, with early Iran-Oman talks reportedly underway on the Hormuz Strait. Then a report broke that a Shanghai state-backed company had begun mass-producing domestic immersion DUV lithography machines, and PHLX dropped 4.80% to 11,243.5 on fears that US chip sanctions on China no longer bite.
The report’s own read tempers the panic: China’s breakthrough is only 28nm DUV, while ASML supplies cutting-edge 7nm and below, and China still cannot make EUV. NASDAQ-100 and NASDAQ Composite are both confirmed in Descending Triangles from their June 3 highs, and NVDA and TSLA both show double-headed Head and Shoulders with failed pullbacks, meaning the Iran-driven damage was never repaired before this new scare hit.
Underneath, this week’s FOMC meeting carries no Dot Plot and no Economic Projections at all, so every word from Kevin Warsh’s press conference will be read for tone, not data, at the exact moment the market is trying to absorb two separate shocks instead of one.
One crisis pausing does not mean the market gets to rest. Watch whether chips can separate the real DUV story from the scary headline before the next shock arrives.
Full report available via the download button below. Read previous US Stock Express editions here.
US Stock Express 20260728 HEAD+Shoulders DUV EUV
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.