The iShares Semiconductor ETF (SOXX) plummeted 5.02% during Monday's intraday trading session, reflecting a broad sell-off in the semiconductor sector.
The sharp decline was driven by multiple factors converging to dampen investor sentiment. Renewed military escalation between the U.S. and Iran over the weekend rattled markets, with Iran's announcement of closing the Strait of Hormuz sparking risk aversion and driving oil prices higher. This geopolitical tension particularly weighed on technology and growth stocks with elevated valuations.
Concurrently, the semiconductor sector faced intense profit-taking pressure. Memory chipmaker SK Hynix saw its U.S.-listed shares plunge sharply following its blockbuster Nasdaq debut, dragging down peers and the broader chip ETF. Investors also expressed concerns about aggressive capacity expansion plans by major chipmakers, stirring fears of a potential return to the industry's historical boom-and-bust cycles despite strong ongoing demand for AI-related hardware.
Comments