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Why Are Chip Stocks Down Today?

  • Consumer Price Index (CPI) is hitting chip stocks today.
  • This comes as investors fear increasing interest rates.
  • That combines with other negatives keeping chip stocks down this week.
Chip Stocks - Why Are Chip Stocks Down Today?

Source: Shutterstock

Chip stocks are feeling the heat on Thursday after the latest Consumer Price Index (CPI) report for September dropped.

The basics that investors need to understand is that the CPI increased 8.2% over the prior 12 months. It also saw an increase of 0.4% from August. These are higher than expected and aren’t sitting well with investors.

One of the biggest reasons investors aren’t happy about that data is the likely response from the Federal Reserve. It’s likely that the organization will introduce interest rate increases at its next meeting to try and combat inflation.

Other Factors Are Also Affecting Chip Stocks

Dealing with inflation is bad enough, but there’s a slew of other issues keeping chip stocks down this week. That includes new restrictions from President Joe Biden’s Administration. This keeps semiconductor companies from exporting certain tech to China.

Adding to that, it looks like earnings season will be rough for chip stocks, as Taiwan Semiconductor (NYSE:TSM) saw this morning. Several companies have already warned that results will suffer. A key reason for this is the lack of demand from consumers. This even caused Intel (NASDAQ:INTC) to reveal company-wide layoffs.

Careful investors may want to keep an eye on chip stocks as they fall. The drop in price could mark a good entry point ahead of a likely return to form.

There’s more stock market news traders can read about below!

We’ve got all of the hottest stock market news investors need to know about for Thursday! Among that is why shares of Digital World (NASDAQ:DWAC), Mullen Automotive (NASDAQ:MULN), and airline stocks are on the move today. You can check out all of this news at the following links!

More Thursday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/why-are-chip-stocks-down-today-oct-13/.

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