Nvidia Stock Plunge and Semiconductor ETF Performance Decline
Nvidia's stock plummeted by nearly 10%, leading related semiconductor ETFs to record their worst performance in four and a half years. Major semiconductor ETFs like SOXX and SMH fell by 7.6% and 7.5%, respectively, while the leveraged ETF SOXL saw a massive drop of 22.5%. This marks the largest decline since March 18, 2020. All Philadelphia Semiconductor Index components experienced a uniform decline. Nvidia's stock dropped by about 9.5%, and Monolithic Power Systems witnessed a 10.28% decline. Wedbush's Daniel Ives mentioned that while the current situation doesn't compare to the 1990s dot-com bubble, it is indicative of the early stages of the AI revolution.
Further compounding the issue, Nvidia's stock plummeted over 9% due to news of a U.S. Department of Justice antitrust investigation. In response, seasoned investors aggressively purchased the 3x leveraged semiconductor ETF (SOXL), anticipating a rebound. Top buy-side assets included Tesla and the 'iShares 20+ Year Treasury Bond ETF' (TLT). Conversely, the 'Direxion Daily Tesla Bull 2X Shares' (TSLL) and Nvidia-related ETF (NVDL) emerged as major sell-side securities.
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Nvidia's Plummet Drags Down Semiconductor ETFs: 'Worst in 4 Years' - E-DailyNvidia's stock price plummeted nearly 10%, resulting in some semiconductor-related Exchange-Traded Funds (ETFs) posting their worst performance in four and a half years. According to MarketWatch on the 3rd (local time), the Philadelphia Semiconductor Index (PHLX Semiconductor Index S...) in the New York Stock Exchange suffered significantly.