Chip Stocks Slump on Supply Chain Concerns, Test Support Level
(Bloomberg) -- Semiconductor stocks are falling as investors fret about memory chip supply-chain issues, sending a basket of industry heavyweights toward correction territory.
Chipmakers have slumped over the past month amid trader concerns over supply shortages, profit warnings around the world and pressure from rising U.S. Treasury yields. The Philadelphia Semiconductor Index is down 8.7% since a Sept. 16 peak, underperforming the S&P 500 Index, to trade at the lowest level in about two months.
The index is testing its 200-day moving average, a technical support level left unbroken since May of last year. Amkor Technology Inc. led the group lower Tuesday after Credit Suisse cut its rating on the stock to neutral from outperform, while Micron Technology Inc. tumbled amid concerns surrounding prices for its memory chips.
Earnings reports for the industry are set to pick up next week when ASML Holding and Lam Research Corp. are expected to report results on Oct. 20, followed by Intel Corp. on Oct. 21.
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