Chipmakers Plunge 4.9% as Anthropic CEO Urges AI Slowdown, 10-Year Yield Tops 5%
SOX sits 87% above its 52-week low of $5,974.588.
Summary
The PHLX Semiconductor Index is down 4.9% in early trading Monday after Anthropic CEO Dario Amodei called on AI companies to slow model development, with Elon Musk and Sam Altman agreeing. The 10-year Treasury yield crossed 5% for the first time since October 2023, adding pressure on growth stocks. Nvidia is down more than 3%, and the S&P 500 tech index is off 1.7%. Traders now price a ~90% chance of a Fed rate hike this week, per CME FedWatch. This follows a volatile period for SOX, which has seen multiple 4-8% daily swings over the past three months. The index remains up nearly 60% YTD despite today's drop.
Updates
· Reuters — The PHLX Semiconductor Index closed down 5%, its biggest daily drop since late July, while Microsoft and other software names traded higher.
At the time of this announcement, SOX was trading at $11,165.35 on NASDAQ in the Technology sector. The 52-week trading range was $5,974.59 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.