How much of Thursday's 12% chip wipeout did Friday win back?
How much of Thursday's 12% chip wipeout did Friday win back? By the 4% SOX reading Yahoo Finance reported, about a third. I'm treating the Nov. 6 bounce as relief, and I'm still skeptical on semis.
- The PHLX Semiconductor Index fell about 12.25% on Nov. 5, its worst day since 2020. Friday's reported gains ranged from about 4% to above 6% depending on the hour, and none of those readings erases Thursday's drop.
- At 17:25 UTC on Nov. 6, $AMD was up 9.7% at $443.79, Intel was up 7.2% at $56.01 and Nvidia was up 3.7% at $188.38. AMD fell about 17% on Thursday, so even a near-10% day leaves it below where it started.
- Reuters and other outlets tie the selloff to worries that Democratic midterm gains could bring tighter AI rules or slow data-center projects. That is still a market fear with no enacted policy behind it, so it can flare up again whenever Congress talks.
- The best case against my skepticism is AMD's Nov. 3 quarter: $13.4B in revenue, up 45%, with record Data Center revenue up 97%.
If chips hold these gains into next week while Congress spells out its AI and data-center stance, I'll give the bounce more credit. Until then it looks like a dead-cat bounce to me, though I could be early.
Sources:
Yahoo Finance live blog: https://finance.yahoo.com/markets/live/stock-market-today-friday-november-6-dow-sp-500-nasdaq-jobs-report-earnings-135953863.html
Charles Schwab - Stocks Mixed, Yields Up on Surging Job Growth: https://www.schwab.com/learn/story/stock-market-update-open
Not financial advice. For informational and educational purposes only.
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