Reuters01:38 PM ET, 04/28/2026
LIVE MARKETS-Semiconductors: Primed for a bigger fall or more room to run?
Nasdaq off ~1.1%, S&P 500 declines ~0.6%, Dow edges green
Tech weakest S&P 500 sector; Energy leads gainers
Dollar up; US crude rallies ~4%; bitcoin down ~1%; gold down ~2%
US 10-year Treasury yield rises to ~4.36%
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SEMICONDUCTORS: PRIMED FOR A BIGGER FALL OR MORE ROOM TO RUN?
The PHLX Semiconductor Index .SOX is down more than 4% and on track for its biggest daily percentage decline since March 26, weighed down by a broader tech selloff in AI-related stocks after the Wall Street Journal reported that OpenAI had missed its goals for new users and revenue in recent months.
Chips have been coming off a stunning rally, however, of a record 18 straight sessions of gains, during which it advanced nearly 50%, before the streak was snapped on Monday.
The Bank of America global equity derivatives research team said in a note on Tuesday that semiconductor stocks “have seen unprecedented momentum since the Middle East ceasefire,” and that “stock fragility remains acute in the sector,” underscored by near-record one-day rallies in Intel INTC.O and Texas Instruments TXN.O last week.
BofA said the high-momentum and high-volatility price dynamics in the semiconductor space “increasingly resemble bubble-like instability,” and said the firm’s “Bubble Risk Indicator” for the index was rising sharply to the top quintile and ChatGPT-era highs.
Meanwhile, Ned Davis Research recently noted that there have been three prior instances of the SOX rallying for 12 days in a row or more.
Of those prior rallies, 90 days later, the index saw a mean decline of about 13% and a median decline of more than 9%.
However, after those cooling-off periods and 240 days later, the index saw a mean gain of 20.77% and a median jump of 20.25%.
(Chuck Mikolajczak)
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EARLIER ON LIVE MARKETS:
MARKETS START DOWN THE WARSH PATH CLICK HERE
TWOFER TUESDAY: SUN SHINES ON CONSUMERS, RAIN FALLS ON HOME PRICES CLICK HERE
US STOCKS WEAKER AS TECH WEIGHS CLICK HERE
STOCKS ARE SCORING RECORDS, BUT THE DOW IS STILL BENCHED CLICK HERE
HALF TIME IN EUROPE CLICK HERE
LEAVIN’ ON A JET PLANE... OR NOT CLICK HERE
EQUITY RECOVERY: MORE TO GO OR SOFT PATCH AHEAD? CLICK HERE
SOX PUPPETS CLICK HERE
AN UNEASY LULL CLICK HERE
EUROPE BEFORE THE BELL: NO WAR, NO PEACE CLICK HERE
BOJ’S HAWKISH HOLD CLICK HERE
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