VanEck Semiconductor ETF is trading 5.1% down today as a disappointing earnings report from Broadcom triggers aggressive profit-taking across richly valued AI and semiconductor stocks.
- Broadcom's earnings disappointment has sparked a sector-wide retreat, dragging down major semiconductor holdings as investors lock in gains following recent rallies.
- A stronger-than-expected U.S. jobs report has fueled concerns that the Federal Reserve will keep interest rates higher for longer, accelerating a rotation out of growth stocks and a broader Nasdaq selloff.
- The combination of stock-specific pressure and macro-driven de-risking is weighing heavily on the information technology sector and the SMH ETF.