The iShares Semiconductor ETF (SOXX) experienced a sharp decline of 5.01% during intraday trading on Thursday, reflecting a broad sell-off in the semiconductor sector.
The downturn was part of a wider weakness in technology stocks, with semiconductor ETFs leading the losses. The pressure was particularly evident in memory chip stocks, which faced intensified selling. This movement follows new regulatory measures in South Korea targeting single-stock leveraged ETFs, which have raised margin requirements and halted new product launches, specifically affecting speculative trading in memory stocks—a key component of AI infrastructure that had seen substantial gains this year.
Analysts point to profit-taking across semiconductor stocks after a strong rally and increased market volatility as contributing factors to the sector's retreat. The declines in major memory manufacturers like SanDisk, SK hynix, Western Digital, and Micron Technology widened throughout the session, amplifying the downward pressure on the broader semiconductor ETF.
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