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August 2, 2026 at 9:00 AM EDT
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The one-way trade in semiconductor stocks that has defined equity markets this year is coming unglued, triggering stomach-churning volatility as investors grow increasingly concerned that the fire-hose of artificial intelligence spending won’t continue.
The Philadelphia Stock Exchange Semiconductor Index, or SOX, plunged 21% in July for its worst month since October 2008, the midst of the global financial crisis. On nearly half the trading days last month, the index, which tracks 30 of the world’s biggest chipmakers, closed up or down by least 4%. And all 22 sessions had intraday swings of at least 2%, something that hasn’t happened since 2020.
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