US Semiconductor Stocks Bounce Back After Historic Weekly Selloff
US chip stocks recover ground following a bruising weekly selloff as lower Treasury yields and easing crude oil prices offer support to the AI trade.
POLICY WIRE — New York, United States — American semiconductor equities regained some lost footing on Monday, staging a notable market bounce following a punishing weekly selloff. Relief arrived as declining Treasury yields and softening crude oil prices provided a much-needed cushion for the recently pressured artificial intelligence sector.
The iShares Semiconductor ETF, standing as the largest exchange-traded fund tracking domestic chip enterprises by assets under management, advanced 3.6% during premarket trading. This upward movement follows a historic market rout that generated massive gains for courageous short sellers betting against one of the highest-flying segments in American equities.
Recent sessions saw semiconductor equities log their longest losing streak in nearly two decades, driven by unique market pressures rather than a traditional credit crisis. The intense downturn put the sector on track to shed $2 trillion in market value by Thursday, fueled by rising expectations of an interest-rate hike and escalating anxiety surrounding the sheer cost of the ongoing artificial intelligence buildout.
During the broader downturn, the Philadelphia Semiconductor Index marked its longest losing streak in 11 years as worldwide AI and microchip equities collectively surrendered more than $1 trillion in market capitalization. Market observers continue to monitor broader investor rotation into value equities alongside upcoming Big Tech earnings reports.
Reporting by Policy-Wire (PW)
