Semiconductor Stocks Plunge Amid Rising Oil Prices and Higher Yields
Intel, AMD, and Broadcom shares fell on Wednesday due to global equities pausing after a four-day winning streak.
Rising oil prices and higher Treasury yields weighed on investor sentiment, with Brent crude futures increasing by 2% and US West Texas Intermediate crude futures rising by 1%.
The Philadelphia Semiconductor Index was down around 1.4%, with Intel, AMD, and Broadcom all dropping by 2%.
This decline comes as investors await further developments in Middle East peace efforts and consider the potential impact of higher oil prices on inflation.
According to Federal Reserve Governor Michael Barr, the central bank has taken a step to 'recalibrate' short-term borrowing costs and will likely need to deliver further interest-rate increases due to inflation remaining above the 2% target.