Why Taiwan Semiconductor, Qualcomm, and Skyworks Solutions Fell Today, but Then Recovered
Shares of semiconductor stocks fell hard today before recovering somewhat in late-day trading. Leading chipmaking firms Taiwan Semiconductor Manufacturing (NYSE: TSM), Qualcomm (NASDAQ: QCOM), and Skyworks Solutions (NASDAQ: SWKS) were down as much as 4.3%, 2.9%, and 2.9% before recovering to a 2.9%, 0.9%, and 1.4% decline, respectively, as of the end of trading.
There was actually some mildly encouraging news today for semiconductors, specifically out of Taiwanese publication Digitimes around recent order trends for TSMC. Nevertheless, it appears as though economic jitters are overwhelming sector-specific news, as the Credit Suisse (NYSE: CS) drama has spurred increased fear over the global economy.
Today, Credit Suisse plunged after the company released its annual report last night, which disclosed material weaknesses in its financial reporting. Meanwhile, the bank's largest shareholder said today it wouldn't step in with more capital to stem the tide, causing a panicked sell-off and fears over potential bankruptcy. While it appears the Swiss government is working on a backstop solution, investors are obviously worried about the bank's contagion to the broader economy and thus a potential global recession.
Source Fool.com
