The iShares Semiconductor ETF is trading at $552.19 (-1.77%) as the sector continues a sharp selloff that began in early June, with investors remaining cautious ahead of key inflation data.
- The recent, severe downturn in semiconductor stocks was initially triggered by disappointing AI chip guidance from Broadcom (AVGO) on June 3, which erased approximately $1.3 trillion in market value from the sector.
- Broader market pressure persists due to fears of higher-for-longer interest rates and a general tech selloff, with the Nasdaq having its worst session since April 2025 in the preceding days.
- Investor caution is particularly high ahead of the May CPI inflation data, scheduled for release at 08:30 ET, which is expected to heavily influence the Federal Reserve's next moves.