The PHLX Semiconductor Index rose 1.6% on Oct. 19 after an eight-session decline, but remained 14.4% below its Oct. 6 close. The S&P 500 fell 1.6% over the same period, leaving the chip benchmark with a much steeper loss.
Nasdaq recorded an index close of 13,217.82 on Oct. 6; by Oct. 16, the closing level was 11,137.29. It ended each of the eight sessions in between lower, a 15.7% slide. The Oct. 19 rebound lifted the index to 11,316.34 and ended the run of losses. Reuters reported that the eight-session streak was the index’s longest losing run since October 2008.
The index tracks semiconductor companies, so its performance cannot show how all AI-related stocks moved. In its October Global Financial Stability Report, the International Monetary Fund (IMF) warned that AI-related assets could face a correction if investment or profits disappoint. The report said leverage and concentrated holdings could amplify such a correction; it did not identify those risks as the cause of the index’s October decline.
