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General TradingS
Supply Shock
A sudden and unexpected change in the supply of a commodity or asset that causes a sharp price movement. Supply shocks can be positive (increasing supply) or negative (decreasing supply), and they often trigger significant volatility across related markets.
Example
“The 2021 semiconductor supply shock caused chip prices to skyrocket, benefiting semiconductor stocks like TSMC and ASML while disrupting production across the automotive industry.”