In a surprising turn of events, Thursday proved to be a challenging day for the semiconductor sector, experiencing its worst trading performance in seven weeks. Notably, top tech stocks such as Nvidia, Amazon, Meta, and Alphabet have reported earnings revisions that are more than 35% higher than the entire S&P 500.

Finance expert Jared Blikre from Yahoo Finance joined Asking For A Trend to shed light on the market trends observed during this tumultuous trading session. Blikre dubbed the day as the "Chip Apocalypse," referring to the unexpected significant downturn witnessed within the sector.

Blikre pointed out the intense sell-off in Nvidia, showcasing a two-month chart with a noticeable red candle indicating a potential consolidation or minor correction period. Another year-to-date chart highlighted a similar red candle, potentially indicating a continuation of the downward trend.

Another stock that captured Blikre's attention was MD, which appears to have experienced a positive reaction in response to a Paris trade. While MD had a modest 4.62% gain for the day and a 10% increase year-to-date, it pales in comparison to the downward trajectory witnessed in Nvidia.

Additionally, Blikre highlighted the upcoming options expiration and rebalance, which will significantly impact Nvidia's trading dynamics on Monday. Currently, there is a virtuous cycle where investors are purchasing call options in Nvidia, forcing market makers to cover their positions by buying the underlying stock. This cycle has resulted in continuously rising prices for Nvidia. However, the expiration and rebalance events may mark the end of this cycle, allowing the stock to trade more freely in both upward and downward directions.

Blikre also shared an interesting observation from a Goldman note, referring to the "yachts versus the have-yachts." This term describes the significant difference in earnings revisions between the top five US stocks (Microsoft, Nvidia, Amazon, Google, and Meta) and the remaining stocks in the S&P 500. The top five stocks experienced a 38% increase in earnings revisions, while the other 495 stocks witnessed a 5% decline. Blikre expressed surprise at the extent of this gap, raising questions about the involvement of other stocks in this trend.

Furthermore, Blikre highlighted the stark contrast between the Dow and NASDAQ indices on this trading day. While the NASDAQ experienced a 0.1% decline, the Dow saw a 0.1% increase, reflecting the overall market dynamics.

Looking ahead, Blikre shared a bullish seasonality outlook for July. Historical data reveals that the first ten days of July have consistently been the most bullish period in the market since 1928. However, Blikre emphasized that seasonality is merely a tailwind and should be viewed alongside any significant contradictory news.

In conclusion, the semiconductor sector faced a challenging day in the market, resulting in significant downturns. Earnings revisions for top tech stocks outpaced the broader S&P 500, sparking discussions about potential market trends and investor sentiment. As the month of July approaches, traders and investors will be keeping a close eye on the possibilities presented by the historical bullish seasonality during this time.