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Semiconductor indexes slide toward bear market as SOX breaks key level
The PHLX Semiconductor Index dropped 4.3% Thursday, putting the group under the 12,000 make-or-break threshold and setting up a potential 20% decline from its June peak.
Chip stocks are nearing bear market territory after the PHLX Semiconductor Index broke below a key technical level, according to Yahoo Finance’s chart analysis. The SOX fell 4.3% Thursday, crossing the neckline of a head-and-shoulders pattern and moving to a level less than 1% above 11,708, the threshold that would mark a 20% closing decline from the June high and confirm a bear market.
The report also noted that the iShares Semiconductor ETF, SOXX, is slightly closer to that 20% trigger point. If the index does not reclaim its pivotal level, 11,000 is cited as the next downside technical target, which would be nearly 7% below Thursday’s close.
Yahoo Finance said global chip stocks have shed about $3.3 trillion in market value since June 22, including major Asian names such as Samsung Electronics and SK Hynix. It added that Nvidia has been nearly flat over the same period, while memory stocks have carried much of the decline.
The outlet described Thursday’s broader market move as selective rather than universally risk-off, with the Magnificent Seven falling while the equal-weighted S&P 500 rose. It said a forceful close back above 12,000 on Friday or Monday would indicate a false breakdown, while failure to reclaim 12,000 would likely shift focus to 11,000 next.
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