PHLX Semiconductor Index Declines Amid Rising Treasury Yields
The PHLX Semiconductor Index experienced a significant decline, falling approximately 5% on Tuesday and another 2% on Wednesday, bringing it to around 20% below its record set on June 22, 2026. The index has now lost about 7% of its value over these two sessions, sitting at 11,738. Despite this downturn, the index remains up about 66% year-to-date.
The decrease correlates with rising long-term borrowing costs, as the 30-year U.S. Treasury yield reached 5.33% on Tuesday, the highest level since June 2007. This increasing yield represents a challenge for growth stocks that rely on future earnings, as investors are demanding greater returns for lending money to the government for extended periods.
Notably, the declines were not driven by negative news within the semiconductor sector; Analog Devices, the only company in the index to report earnings this week, announced record results and an optimistic forecast for the fourth quarter.
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