Chip stocks are crashing as the rest of the market barely flinches: AlphaCheck - Yahoo Finance

What the report says

Yahoo Finance reported Tuesday that semiconductor shares were under heavy pressure while broader market breadth remained strong, framing the sell-off as a sector-specific problem unless it begins to affect wider indexes. Jared Blikre wrote that the PHLX Semiconductor Index briefly moved below 11,000 and was more than 25% beneath its June peak, extending weakness that began overseas and spread into U.S.-listed chip names.

The sharpest declines were concentrated in memory-related stocks. Yahoo Finance said the Roundhill Memory ETF fell about 11% on Tuesday and had lost more than 40% from its June high. SK Hynix dropped below its recent U.S. offering price in American trading, Micron had seen a large loss in market value since its June record, and Sandisk was down by more than half from a late-June high. The report noted, however, that losses were not uniform: Nvidia turned higher during the session, and Broadcom’s decline narrowed to under 1%.

Outside semiconductors, Yahoo Finance described a much firmer market backdrop. The equal-weighted S&P 500 rose 1% to a record, nearly three-quarters of S&P 500 constituents were higher for July, and most sectors were advancing Tuesday. The S&P 500 advance-decline line also reached a new high, suggesting participation remained broad beyond the chip trade.

The report identified the next potential catalysts as the Federal Reserve’s rate decision on Wednesday and earnings from major technology companies including Microsoft, Meta, Amazon and Apple. The key issue for investors is whether semiconductor weakness stays contained or begins to undermine the broader rally.