SOXS is trading 5.3% higher in pre-market action as the semiconductor sector continues to face pressure following a sharp global selloff.
- The downturn in chip stocks is driven by mounting concerns over the sustainability of AI capital expenditure and increased competition from Chinese chipmakers.
- Traders are shifting to defensive positions ahead of a pivotal Federal Reserve meeting and amid escalating Middle East tensions, both of which are dampening risk appetite for growth-heavy semiconductor names.