SOX Testing Key Level Amid $2 Trillion Chip Sell-Off

The PHLX Semiconductor Index (^SOX) is currently testing a key level around 11,950 following a $2 trillion sell-off across chip stocks, which has triggered concerns about a potential breakdown. The iShares Semiconductor ETF (SOXX) has a similar critical level at approximately 535. Since June 22, a semiconductor basket has depreciated by about $2.1 trillion, reflecting a median decline of 21%. For chip investors, maintaining these support levels is crucial to avoid a deeper market drop toward 11,000, emphasizing the necessity of buyer support in this volatile landscape.