SMH is trading 1.7% down today as semiconductor stocks extend a multi-day selloff following reports that a Chinese state-backed manufacturer has begun mass-producing advanced chipmaking tools.
- The development intensifies competitive pressures and heightens fears of a global oversupply in the semiconductor market.
- Investor sentiment is further dampened by ongoing doubts regarding AI infrastructure spending and caution ahead of the upcoming Federal Reserve meeting.
- This sector-specific downturn persists despite relatively mixed performance across broader market index futures.