Semiconductors and AI: stress is concentrated in infrastructure and has not yet spread across Wall Street
The SOXX semiconductor index hit a recent high on October 5 and has since fallen about 18.6%, while CoreWeave is down around 34.8%, Vertiv 23.4% and AMD 19.1%, against a decline of roughly 1.5% for the S&P 500. The deterioration is concentrated in AI infrastructure: high yield is starting to move alongside semiconductors and its spreads widened about 15 basis points, but investment grade and long-term Treasuries are still holding up.
In 45 seconds
- SOXX is down about 18.6% from its October 5 high; CoreWeave has lost 34.8% and AMD 19.1%, versus a roughly 1.5% decline for the S&P 500.
- The correlation between semiconductors and high yield is 0.30 over 20 sessions and 0.41 over 60 sessions, while with investment grade it is -0.34.
- High yield OAS has widened about 15 basis points since the SOXX high, compared with about 4 basis points in investment grade.
Read the full story at XTB.com
IASummary generated by artificial intelligence from a story by XTB.com. It may contain errors: the original source prevails.
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