Just days after suffering their worst monthly decline in nearly 24 years, semiconductor stocks have staged one of the strongest rebounds in history.
The iShares Semiconductor ETF (NASDAQ:SOXX) has surged 16.8% over the past four trading sessions, marking its biggest four-day gain since March 2020, when markets rebounded from the pandemic crash.
The rally comes after a brutal July that saw SOXX tumble 21%, its worst monthly performance since December 2002.
Behind that selloff was a combination of aggressive profit-taking following the sector's spectacular first-half rally, forced liquidation tied to the collapse of Leo Aschenbrenner's leveraged fund, and mounting concerns that China's expanding memory industry could eventually pressure pricing.
Yet the rebound suggests investors were quick to view the correction as an opportunity rather than the start of a prolonged downturn.
