U.S. equities opened lower Friday, with technology shares broadly under pressure as the Philadelphia Semiconductor Index fell more than 20% from its record closing high, putting it on track to confirm a bear market. SK Hynix ADR dropped below its $149 offering price for the first time, while SpaceX shares were down 38% from their peak, implying about $1 trillion in market value erased from the top. AMD fell more than 7%, Intel lost more than 6%, and TSMC declined more than 5%.
According to analysts cited in the report, the prolonged pullback in chip stocks has moved beyond fundamentals and is being driven more by shifts in capital allocation and changes in market preference. The report also said market expectations for rate hikes intensified after Federal Reserve Chair Warsh voiced dissatisfaction with inflation during testimony, while other Fed officials added to the pressure with hawkish remarks. Logan explicitly called for rate hikes, and Schmid warned that inflation could accelerate further in the coming months. Separately, uncertainty around a possible U.S.-Iran war continued to hurt broader risk appetite.
U.S. stocks opened lower on Friday, with technology shares sliding across the board, according to Odaily. The Philadelphia Semiconductor Index has fallen more than 20% from its record closing high and is on track to confirm entry into a bear market.
Among individual names, SK Hynix ADR fell below its $149 offering price for the first time. SpaceX shares were down 38% from their peak, with market value set to shrink by about $1 trillion from that high. AMD fell more than 7%, Intel lost more than 6%, and Taiwan Semiconductor Manufacturing Co. (TSMC) dropped more than 5%.
Analysts said the current extended retreat in chip stocks has moved beyond the scope of fundamentals, with the decline driven more by style rotation in capital flows and a shift in market preference.
On the policy side, the report said expectations for Federal Reserve rate hikes increased after Fed Chair Warsh expressed dissatisfaction with inflation during a hearing. Hawkish signals from other Fed officials also added to market tension. Logan explicitly called for rate hikes, while Schmid warned that the risk of faster inflation in the coming months remains in place.
On geopolitics, uncertainty around the prospects of a U.S.-Iran war continued to weigh on market risk appetite.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
