(Bloomberg) — Semiconductor shares including Nvidia Corp. are in for a rough ride if US jobs data Friday point to a hard landing for the word’s biggest economy, according to strategists at Bank of America Corp.
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A reading below 100,000 together with an unemployment rate of more than 4.4% would trigger a selloff in stocks, sending the Philadelphia Semiconductor Index — which includes Nvidia, Broadcom Inc. and Advanced Micro Devices Inc. — to around 4,000, the strategists led by Michael Hartnett wrote in a note. That implies a 16% drop from current levels.
Concerns about a potential US recession have weighed on global stock markets recently, and traders will be looking at the August payrolls report for warning signs. Economists estimate an addition of 165,000 jobs and unemployment of 4.2%, according to a Bloomberg survey. But the so-called whisper number for payrolls among Bloomberg terminal users suggests…
