Why Taiwan Semiconductor Manufacturing, Applied Materials, and Skyworks Solutions Fell Hard Today
Shares of semiconductor stocks Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM), Applied Materials (NASDAQ: AMAT), and Skyworks Solutions (NASDAQ: SWKS) all fell hard on Thursday, dropping 2.2%, 4.1%, and 2.8%, respectively, as of 2:40 p.m. ET.
There wasn't much company-specific news today, but since the semiconductor sector is known to be quite cyclical, virtually all chip stocks took it on the chin Thursday, as a combination of macroeconomic data points and Federal Reserve commentary sparked recession fears.
The markets have been whipsawed in the last few days, amid some conflicting signals. On Tuesday, stocks celebrated as the November Consumer Price Index (CPI) print came in lighter-than-expected. That may have led some to believe inflation was softening enough so that the Federal Reserve would ease off its interest rate hikes, and perhaps lead to a "soft landing," in which inflation comes down without widespread job losses.
Source Fool.com
