The Economic Times

$57.2 billion Treasury cash drain hits Wall Street this week: Why semiconductor stocks and SMH ETF investors face more volatility, with a bigger liquidity test coming in 2027

Upcoming Treasury bill settlements on November 10 and 12 are expected to withdraw $57.2 billion from markets. The VanEck Semiconductor ETF has already experienced a notable decline since October, losing nearly 25 percent of its value. Historical trading data indicates that semiconductor stocks perform better when Treasury bill issuance is lower. A potential easing of liquidity pressure may occur in December due to reduced auction sizes.