Why do Taiwan blockade drills matter for Canadian investors?

They can disrupt chip flows from Taiwan, which power cloud, AI, autos, and devices. That raises earnings risk for Nasdaq 100 names many Canadians hold. The knock‑on effects include higher freight costs, export controls, and wider spreads, which can hit CAD‑denominated portfolios through both price and currency moves.

How could a US arms sale to Taiwan affect markets?

It often increases geopolitical risk premia, fuels talk of added export controls, and can pressure China‑linked trade. Defense names may see attention, while semiconductor stocks face headline volatility. For Canadians, alignment with U.S. policy can shape compliance costs and supply chains, influencing returns and cash‑flow timing.

What indicators should I watch on ^NDX during geopolitical stress?

Monitor ATR for volatility, RSI for momentum, and Bollinger bands for pressure zones. Liquidity near market opens and closes can be thin. Also track shipping and airspace updates, sanctions headlines, and earnings guidance from chipmakers, since supply news can trump technicals in the short run.

How can I manage risk without selling core positions?

Consider collars or put spreads on key holdings, reduce single‑name concentration, and keep a cash buffer for swings. Adjust USD hedges based on your CAD needs. Use staged entries and exits around catalysts, and review allocations to chip‑sensitive sectors to avoid overexposure to one risk channel.

Law and Government

^NDX Today, January 3: Taiwan Blockade Drills Put Chip Supply at Risk

ByDanny Kontos January 3, 2026January 3, 2026

Taiwan blockade drills are back in focus, putting chip supply risk front and center for the tech‑heavy Nasdaq 100 (^NDX). Canada’s market depends on reliable semiconductor flows for devices, autos, and cloud services. We break down what the military activity means for logistics, sanctions odds, and volatility in semiconductor stocks. We also map policy paths tied to a possible US arms sale Taiwan and give practical steps for Canadian portfolios that hold U.S. tech exposure in CAD accounts.