Chip Stocks Didn't Fall on Chip News This Week. They Fell on a 19-Year High in the 30-Year Treasury Yield.
The only company in the semiconductor index that reported this week posted record results.
Overview
Semiconductor stocks sold off hard this week. The PHLX Semiconductor Index dropped about 5% on Tuesday and fell another 2% on Wednesday, and it now sits about 20% below the record it set on June 22.
A slide like that usually follows bad news. The unusual part is that there wasn't any -- at least not from the chip companies. The only company in the index that reported results this week, Analog Devices (NASDAQ:ADI), delivered records -- and told investors to expect a record fourth quarter on top of them.
Details
Most of the pressure came from outside the sector: a bond market pushing long-term borrowing costs to two-decade highs, with rising oil prices piling on. On Tuesday, the yield on the 30-year U.S. Treasury bond topped 5.33%, its highest level since June 2007, according to CNBC.
Source
Originally published at www.fool.com.
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