SK Hynix ADR falls over 6% in U.S. premarket trading
U.S. premarket semiconductor stocks broadly declined on July 16, with memory-related names leading losses and SK Hynix ADR pressured after South Korea tightened rules on chip leveraged ETFs and banned new single-stock leveraged products.
U.S. premarket semiconductor stocks broadly moved lower on July 16, with memory-related names posting the sharpest losses. BIT(bit.com) market data cited by BlockBeats showed Western Digital down 7.13%, Sandisk off 6.69%, SK Hynix ADR down 6.66%, Seagate lower by 5.46%, and Micron down 4.11%. Other chip stocks also fell, including Arm by 4.70%, TSMC by 4.52%, Marvell by 3.77%, AMD by 3.25%, Lam Research by 3.12%, and Nvidia by 1.62%. The move in SK Hynix ADR followed a South Korean policy shift that raised minimum margin requirements for chip leveraged ETFs and banned new single-stock leveraged products.
- ADR: American depositary receipt, a U.S.-traded certificate representing foreign shares.
- leveraged ETFs: Exchange-traded funds that use borrowing or derivatives to amplify gains and losses of an underlying index or theme.
- premarket trading: Stock trading before regular U.S. market hours.