The semiconductor sector continued its corrective phase on Friday.
Shares of NVIDIA (NVDA) declined nearly 2%, while Taiwan Semiconductor Manufacturing (TSM), Advanced Micro Devices (AMD), ASML Holding NV (ASML), and Lam Research (LRCX) all dropped more than 2%.
Broadcom (AVGO) shares fell over 1%, and Intel (INTC) shares declined more than 3%.
ARM Holdings (ARM) shares were down nearly 1%.
Analysts have indicated that the ongoing pullback in chip stocks has extended beyond fundamental factors, increasingly influenced by shifts in capital allocation and changing market preferences.
Furthermore, remarks from Federal Reserve officials have heightened market expectations for interest rate hikes, adding to investor unease.
Specific Fed members have signaled a more hawkish stance, warning that risks of accelerating inflation persist in the coming months.
Geopolitical tensions, including uncertain prospects in certain international conflicts, have also dampened overall market risk appetite.
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