SAN FRANCISCO (Reuters) – Wall Street’s main semiconductor benchmark tumbled into correction territory on Tuesday in its deepest four-day rout since the financial crisis, as the coronavirus spread further around the world and deepened fears about the global economy.
FILE PHOTO: A man wears a mask in Chinatown in New York, U.S., February 13, 2020. REUTERS/Yana Paskova
The Philadelphia Semiconductor Index .SOX dropped 3.2%, bringing the decline from its Feb 19 record high to almost 12%, the worst four-day drop for the index since 2008.
Many investors consider a correction in a security or index to be a drop of 10% or more from its recent peak.
Even after its recent slump, the chip index is up 27% over the past 12 months, a rally that was fueled by expectations that the industry would soon recover from a drop in global demand in recent years. That strong performance has left many investors concerned that chip stocks could be vulnerable to unexpected bad news.
Source Reuters Tech News