What goes up must come down — and that’s on prime display right now in one of the hottest trades of 2026.
What we are watching: On Monday, the Philadelphia Semiconductor Sector Index (^SOX) — aka the SOX — just had its biggest two-day downdraft since the lows in late March
The bloodletting is happening across momentum names that have led the semi stock bubble this year. Micron (MU) and Sandisk (SNDK) have each tanked 14% over the past five sessions. Intel (INTC) is down by 17%.
AMD (AMD) is off by 8%. The trigger: Despite reporting blowout corporate earnings driven by an unprecedented AI memory supercycle and soaring demand for data center hardware, the chips sector has been hit by the reality of surging bond yields. The 10-year US Treasury (^TNX) yield has jumped to a 12-month high of 4.61% amid rising inflation fears.