The semiconductor sector is facing renewed selling pressure as institutional investors continue to rotate out of high-flying chip names. U.S. hedge funds have reduced their exposure to semiconductor and technology hardware stocks for a fourth consecutive week, signaling a sustained shift in sentiment away from the assets that drove much of the market’s recent gains.
The broad-based selloff has rippled across global equity markets.
In the United States, the Dow Jones Industrial Average fell below the 53,000-point mark, while European equities also retreated.
The AEX index in the Netherlands gave up earlier gains as weakness in chip funds dragged on broader performance.
The decline marks a sharp reversal for a sector that has been a primary engine of market returns.
According to a client note from Goldman Sachs, the persistent outflows align with a broader decline in global chip shares.