The semiconductor sector is undergoing a severe repricing, with Wall Street chip manufacturers plunging 7% in Tuesday’s session.
The sharp decline marks a stark reversal for an industry that had more than doubled its valuation in recent months, driven by optimism around artificial intelligence infrastructure.
The sell-off was not isolated to US markets; South Korea’s benchmark KOSPI index crashed nearly 10% earlier in the day, triggering a 20-minute trading halt as panic engulfed the technology sector.
The sell-off was not isolated to US markets; South Korea’s benchmark KOSPI index crashed nearly 10% earlier in the day, triggering a 20-minute trading halt as panic engulfed the technology sector.
MarketWatch highlighted the severity of the current move by analyzing historical data on 17 other semiconductor stock one-day plunges over the last 15 years.
The publication’s review suggests that such extreme intraday volatility often precedes further instability, adding to investor anxiety.
The focus on historical crash patterns underscores a shift in market psychology, with traders now looking to past episodes of panic for guidance on potential downside risk.