Shares of major chipmakers fell as much as 8% during Tuesday's trading session on August 18, as heavy selling pressure continued with investors remaining cautious about the semiconductor and technology sectors.
The decline in these stocks was led by SanDisk, which fell 7.71% to $1,649.02, followed by Intel, which tumbled 7.36% to $95.87. SK Hynix dropped 6.45% to $160.33, Western Digital slipped 5.79% to $504.99, AMD declined 5.53% to $478.03, while Micron traded 5.15% lower at $959.64.
The latest sell-off comes after a significant jump in US Treasury yields as 30-year yield rose nearly 2 basis points to around 5.329%, its highest level since June 2007. High bond yields usually impacts growth and technology stocks as they increase the discount rate applied to future earnings.
The semiconductor space has continued to face volatility since June with cycles of profit-taking and massive sell-offs, as concerns grow over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production and memory IPOs in China, according to reports.
Additionally, focus is also in developments in the Middle East as concerns of a prolonged conflict between US and Iran could keep crude oil prices higher. Brent crude rose above $91 a barrel, after settling at its highest level since late July, while West Texas Intermediate traded near $85. US and Iran continue to remain divided over several issues, including the Strait of Hormuz. Tehran is negotiating with Oman over the management of the waterway, while Washington is not part of these talks. Trump has also threatened military action against Oman if it interferes with the US blockade, according to Fox News.
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