The rout has erased more than $1 trillion in combined market value, with chip stocks on pace for their longest losing streak in 16 years. Market participants are weighing stretched valuations and soaring AI infrastructure costs against worries that inflation will prompt the Federal Reserve to raise interest rates. The current cycle has included four separate corrections of at least 10% since early June, the highest frequency for such a period since 2002.
Wednesday, October 21, 2026
Story
US Chip Stocks Enter Bear Market With Most Frequent Corrections Since 2000
US Markets6 days ago
Investors triggered a massive selloff in semiconductor shares on Wednesday, leading to the steepest single day decline for the sector in over a month. The Philadelphia Semiconductor Index ($SOX) fell 4.3%, contributing to an 11.6% loss over seven trading sessions and a total slide of 20% from June peaks that puts the sector in a technical bear market. This downturn reflects the highest number of corrections in a 135 day window since the dot-com bubble burst in 2000.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.