Semiconductors: Primed for a bigger fall or more room to run
Reuters01:38 PM ET, 04/28/2026
LIVE MARKETS-Semiconductors: Primed for a bigger fall or more room to run?
Nasdaq off ~1.1%, S&P 500 declines ~0.6%, Dow edges green
Tech weakest S&P 500 sector; Energy leads gainers
Dollar up; US crude rallies ~4%; bitcoin down ~1%; gold down ~2%
US 10-year Treasury yield rises to ~4.36%
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SEMICONDUCTORS: PRIMED FOR A BIGGER FALL OR MORE ROOM TO RUN?
The PHLX Semiconductor Index .SOX is down more than 4% and on track for its biggest daily percentage decline since March 26, weighed down by a broader tech selloff in AI-related stocks after the Wall Street Journal reported that OpenAI had missed its goals for new users and revenue in recent months.
Chips have been coming off a stunning rally, however, of a record 18 straight sessions of gains, during which it advanced nearly 50%, before the streak was snapped on Monday.
The Bank of America global equity derivatives research team said in a note on Tuesday that semiconductor stocks “have seen unprecedented momentum since the Middle East ceasefire,” and that “stock fragility remains acute in the sector,” underscored by near-record one-day rallies in Intel INTC.O and Texas Instruments TXN.O last week.
BofA said the high-momentum and high-volatility price dynamics in the semiconductor space “increasingly resemble bubble-like instability,” and said the firm’s “Bubble Risk Indicator” for the index was rising sharply to the top quintile and ChatGPT-era highs.
Meanwhile, Ned Davis Research recently noted that there have been three prior instances of the SOX rallying for 12 days in a row or more.
Of those prior rallies, 90 days later, the index saw a mean decline of about 13% and a median decline of more than 9%.
However, after those cooling-off periods and 240 days later, the index saw a mean gain of 20.77% and a median jump of 20.25%.
(Chuck Mikolajczak)
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EARLIER ON LIVE MARKETS:
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HALF TIME IN EUROPE CLICK HERE
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SOX PUPPETS CLICK HERE
AN UNEASY LULL CLICK HERE
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BOJ’S HAWKISH HOLD CLICK HERE
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