US Chip Stocks Rebound After $2 Trillion Market Loss
US semiconductor stocks recovered on Monday following their steepest weekly selloff since March 2025, driven by lower Treasury yields and easing oil prices.
US chip stocks rebounded on Monday after experiencing their most severe weekly decline since March 2025. The Philadelphia chip index had fallen for eight consecutive sessions, resulting in a loss of approximately $2 trillion in market value. This downturn was driven by inflation concerns, potential Federal Reserve rate hikes, and investor skepticism regarding the returns on high artificial intelligence spending.
The iShares Semiconductor ETF rose 3.6 percent in premarket trading, recovering from a nearly 12 percent drop the previous week. Gains were widespread across the sector, with Nvidia Inc. rising 1.9 percent and AMD gaining 3.5 percent. Micron Technology rose 3.6 percent, rebounding from a 14.6 percent decline the prior week.
Intel saw its stock rise 4.2 percent following a rating upgrade to neutral from J.P.Morgan. The recovery was further supported by a decrease in Treasury yields and a drop in crude oil prices. Market attention now shifts to upcoming quarterly earnings reports from Texas Instruments, Lam Research, and Western Digital.
