Chip Stocks Plunge Over 5% as Bond Yields Hit Decade Highs
SOX has more than doubled off its 52-week low of $5,480.048.
Summary
The PHLX Semiconductor Index fell more than 5% on August 18, with Intel, Marvell, ARM Holdings, Coherent, and Teradyne each down 7% or more. The selloff comes as the 30-year U.S. Treasury yield hovers near 5.3% after hitting a 19-year intraday high, and Japanese long-dated yields approach record levels. Rising borrowing costs are pressuring equity valuations, particularly for capital-intensive chipmakers. Renewed Middle East tensions after a cargo ship attack in the Strait of Hormuz added to risk-off sentiment. This is the sharpest single-day drop for the index since late June, when it fell about 8%.
At the time of this announcement, SOX was trading at $11,888.98 on NASDAQ in the Technology sector. The 52-week trading range was $5,480.05 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.