Philadelphia Semiconductor Index Falls 19% From June Peak, Edges Toward Bear Market on July 16

According to MarketWatch, the Philadelphia Semiconductor Index fell to near bear market territory on Thursday (July 16), down 19% from its June 22 record high. The index dropped 4.3% to close at 11,876.50 points, just short of the 11,707.78 level that would confirm a bear market (a 20% decline from peak).

Meanwhile, market rotation is accelerating as investors diversify away from semiconductor stocks. Financial stocks hit record highs on strong bank earnings, and retail and transportation stocks are also climbing, suggesting capital is shifting from the semiconductor sector to other economically-sensitive industries.