Taiwan's stock market faces pressure as US stocks turn lower (6th). The four major US indices all closed down yesterday, with Tesla's stock plummeting 14%, leading the tech sector's decline. Whether the weighted index can maintain yesterday's gains is a key focus for the market.

Tesla's market value fell below the $1 trillion mark after CEO Elon Musk publicly clashed with President Donald Trump, causing a loss of confidence in the market and leading to weaknesses in overall tech stocks. Despite reported progress in US-China trade negotiations, it was not enough to stem the downward trend of US stocks.

In response to these negative sentiments, Taiwan's futures market dropped 24 points overnight, and TSMC's futures also slipped by 1 NT dollar. Overseas investors slightly bought 0.7 billion NTD, whereas domestic funds were net sellers, resulting in a total of 63.1 billion NTD in sell-offs. While the overall sentiment remains bearish, some local investors and retail traders still hold expectations for market performance.

Market participants are on alert for emerging news, with Taiwan’s weighted index closing at 21,674 points after a 56-point gain and a turnover of 358.7 billion NTD. Today's performance will hinge on TSMC and major stocks. If critical support levels hold, the index may remain stable.

Given the backdrop of rising unemployment claims and dialogue progress between the US and China, expectations for a rate cut by the Federal Reserve are increasing. If TSMC and AI stocks can maintain key support today, the index is expected to hold the monthly moving average.

Experts recommend a cautious approach to short-term trading while monitoring the risks stemming from US stock declines and US-China trade policy developments. In the medium to long term, it remains advisable to focus on high-dividend and AI semiconductor supply chain stocks, ensuring strict controls on positions and setting stop-loss limits, with an eye on potential rebounds after negative sentiment dissipates.