Has the index recovered pre-selloff levels?

No, it has not recovered levels before last week's selloff.

What does 'broadening trade' mean?

Broadening trade means gains are spreading across multiple sectors rather than being concentrated in one.

Chip Stocks Still Below Levels Seen Before Last Week’s SellOff

The PHLX Semiconductor Index rose 3.5%, yet remains below levels before last week's selloff. Morgan Stanley's CIO Mike Wilson notes that chip stock underperformance is helping the broadening trade.

July 6, 2026

2 min read

Source: Barrons.com

Key Numbers

PHLX Semiconductor Index gain

3.5%

Nasdaq gain

1.3%

S&P 500 gain

0.7%

The PHLX Semiconductor Index rose 3.5% on Monday, fueling gains of 1.3% and 0.7% in the Nasdaq and S&P 500, respectively. However, the chip index has not climbed back to levels seen before last week's selloff.

Details

According to a report from Barrons.com, Morgan Stanley (NYSE: MS) Chief Investment Officer Mike Wilson said this underperformance in chip stocks is helping the broadening trade. Wilson highlighted that the lag in chip stocks is a positive development for the broader market.

Context

The analysis comes amid a volatile market period, with tech and chip stocks experiencing selling pressure last week. Investors appear to be rotating into other sectors.

What It Means for Investors

The underperformance of chip stocks may signal a shift in investor preferences toward other sectors, potentially broadening market gains. However, it remains important to monitor key indices to see if this trend continues.

Frequently Asked Questions

The PHLX Semiconductor Index is an index of 30 leading semiconductor companies.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.