S&P 500 semiconductor index falls 32% from June peak

US semiconductor stocks are showing crisis-level volatility. The S&P 500 Semiconductors & Semiconductor Equipment Index has logged multiple sessions with widespread declines and is down significantly from its recent peak.

Key metrics

- Over the last five months, the index recorded 11 trading sessions where at least half of components fell 5% or more. This is the fourth-highest count on record.
- During the 2008 Financial Crisis, the index recorded 16 such sessions.
- Only 2000 and 2002, after the Dot-Com Bubble burst, had more volatile periods by this measure.
- The index fell more than 5% on 12 trading days in the last five months.
- Performance since June peak: down 32%, now at the lowest level since April.

Context and implications

- Volatility resembles stress seen during major equity drawdowns, indicating elevated risk aversion in cyclical technology.
- Cross-asset risk dynamics often strengthen during such periods, increasing the probability of broader risk-off moves that can pressure crypto prices.