Semiconductor ETF SOXQ Plunges 4% Premarket as Chip Rally Faces Reality Check
SOXQ has more than doubled off its 52-week low of $42.67.
Summary
The Invesco PHLX Semiconductor ETF (SOXQ) is down approximately 4% in premarket trading, signaling significant pressure on U.S. semiconductor stocks. This downturn is attributed to renewed concerns about the AI trade following Samsung Electronics' latest results. The PHLX Semiconductor Index (SOX) has already fallen 9.5% in July and is 12% below its June 22 record close. This represents a notable shift from earlier in June, when SOXQ saw premarket gains. Traders are now focused on key technical support levels, including the 10-week moving average near 12,700 for the SOX index, to determine if the sector's long-term uptrend can hold.
At the time of this announcement, SOXQ was trading at $97.11 on NASDAQ in the Technology sector. The 52-week trading range was $42.67 to $115.34. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.