All Semiconductor Stocks Slide Below 50-Day Moving Average in Broad Selloff
Every component of the Philadelphia Semiconductor Index (SOX) has fallen beneath its 50-day moving average for the first time since April 2025, as the index loses 18.9% in July.
The Philadelphia Semiconductor Index ($SOX) saw all its constituents trade below their 50-day moving averages, a rare event last recorded in April 2025. This marks a stark turnaround from early June, when all 30 members were above that threshold.
The index has slumped 18.9% so far in July, on course for its worst monthly performance since 2008. As a result, $SOX is now trading 11% below its 50-day moving average, the widest gap since March 30.
Despite the sharp drawdown, semiconductor stocks remain up 63% year-to-date. Meanwhile, the VanEck Semiconductor ETF ($SMH) has recorded $1.3 billion in outflows month-to-date, potentially the second-largest monthly outflow on record.
The combination of widespread technical weakness and heavy ETF redemptions suggests oversold conditions, though the index’s year-to-date performance still reflects strong prior gains.
Source: The Kobeissi Letter