Chip Stocks Sink to Lowest Since 2020 as US Expands China Curbs
- Equipment stocks lead the declines among US companies
- The escalation carries risk of retaliation, Bernstein says
Shares of semiconductor companies fell Monday, with the industry selling off globally after fresh US curbs on China’s access to American technology added to a disappointing start to the earnings season, stoking concern that the industry’s downturn is far from over.
The Philadelphia Stock Exchange Semiconductor Index fell 3.5%, closing at its lowest level since November 2020. The index dropped nearly 10% over the past three trading days, and is now down more than 40% so far this year. Semiconductor capital equipment companies led the day’s declines, with Applied Materials Inc. tumbling 4.1%, Lam Research Corp. off 6.4% and KLA Corp. down 4.7%. Advance Micro Devices Inc. dropped 1.1%, ending at its lowest since July 2020, while Marvell Technology Inc. shed 4.8%.