The Philadelphia semiconductor index fell over 3% Monday, dragging ARM and other major chip stocks lower despite strong TSM data.
The Philadelphia semiconductor index, SOX, dropped more than 3% in late-morning trading Monday, led by declines in Arm Holdings (ARM) and Marvell. The sell-off occurred despite an upbeat report from Taiwan Semiconductor Manufacturing (TSM), weighing on the 30 largest U.S.-traded chip stocks.
The SOX had shown resilience earlier but broke support as broader market sentiment shifted. The decline contrasted with gains in the Dow Jones index, while the Nasdaq fell amid geopolitical tensions, including new U.S.-Iran strikes. SK Hynix also slid in morning trading.
No immediate catalyst for the chip sector’s drop was identified, though macroeconomic concerns and profit-taking may have contributed to the move.