Chip selloff deepens as SOX enters bear market, Asian stocks fall
Why it matters: The Philadelphia chip index has dropped 20.2% from its June peak, pressuring AI-linked shares from Seoul to Wall Street.
A broad semiconductor selloff deepened across global markets, dragging Asian equities lower and pushing the Philadelphia SE Semiconductor Index into a bear market. South Korea led regional losses on Thursday, with SK Hynix falling 8.4% and MSCI’s Asia Pacific gauge down 1.1%, while Japan’s Nikkei slid more than 2%. By Friday, Wall Street extended the retreat as chip weakness spread beyond the sector. The SOX ended more than 20% below its June 22 record close and has fallen more than 18% in July. Investors are reassessing whether earnings can justify lofty AI valuations, even as second-quarter results have broadly topped forecasts. Rising crude prices tied to escalating US-Iran hostilities added to the risk-off mood and lifted energy shares.