Philadelphia Semiconductor Index Falls Into Bear Market, Down 20.2% From June High on July 17

SPX5000.40%
According to MarketWatch, the Philadelphia Semiconductor Index (SOX) officially entered bear market territory on July 17, closing 20.2% below its June 22 record high. The index fell 1.63% that day after plunging as much as 5.7% intraday. However, Bank of America analyst Vivek Arya characterized the decline as "summer repositioning rather than a fundamental reversal," noting that SOX historically underperforms the S&P 500 in the third quarter and that semiconductor stocks surged roughly 80% in the second quarter. Arya maintained a positive outlook on semiconductor equipment and memory chip stocks.
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