Wall Street is keeping a close watch as S&P 500 futures showed little change, but chip stocks are decidedly not staying put. After enjoying a rally boosted by artificial intelligence mania, these stocks are taking a dive just before the tech earnings bonanza and the Federal Reserve’s next move.
The Chip Sector’s Rough Patch
A significant retreat hit the sector, with declines ranging from 2% to over 12% for some key players. Intel and Micron were among those hardest hit, while memory-chip makers like SanDisk plummeted as much as 12.6%. The downturn arrived despite TSMC’s stellar 77% year-over-year profit increase.
The Philadelphia Semiconductor Index, along with related ETFs like the VanEck Semiconductor ETF (SMH), mirrored the stumble, erasing about $1 trillion in market value. This comes after a rally that had semiconductor stocks gaining roughly 70% for the year—until now.
Market Metrics and Fed Watch
