Don't just focus on NVIDIA's semiconductor stock performance this month, which is lower than the S&P 500 Index
According to data from Bespoke Investment Group, despite the recent rise in NVIDIA's stock price, semiconductor stocks have underperformed the S&P 500 index this month. The S&P 500 index rose by 0.7%, reaching a historical high, while NVIDIA's stock price fell by nearly 0.2%. The overall performance of the semiconductor sector has been weak, with the Philadelphia Semiconductor Index experiencing a significant decline in September and insufficient rebound momentum. Although the iShares Semiconductor ETF rose by 2% in October, it still fell by 9.4% over the past three months
According to data from Bespoke Investment Group obtained by Zhitong Finance and Economics APP, despite the recent surge in the stock price of NVIDIA (NVDA.US), the performance of semiconductor stocks this month still lags behind the S&P 500 Index.
On Wednesday, the S&P 500 Index rose by 0.7% to close at 5792.04 points, hitting a new record high. The stock price of semiconductor giant NVIDIA fell by nearly 0.2% in the day's trading, narrowing its October gain to 9.2%.
In an email report on Wednesday, Bespoke pointed out that although the "technical trend of NVIDIA may have improved, the overall performance of the entire semiconductor sector is not strong." They also stated that the "Philadelphia Semiconductor Index" has been suppressed by resistance throughout the summer, despite the index surpassing both the 50-day and 200-day moving averages.
Bespoke's analysis indicated that the decline in the semiconductor index in September was more severe compared to August, and the subsequent rebound was weaker. According to FactSet data, the Philadelphia Semiconductor Index (SOX.US) rose by 1.1% on Wednesday, while the Invesco Philadelphia Semiconductor ETF (SOXQ.US) also increased by 1%.
Bespoke pointed out that although the sell-off in the semiconductor sector at the beginning of September was not as severe as in August, the index has seen a "higher low point," which may be a positive signal for the sector, although it has not yet reached the level of setting higher highs.
Meanwhile, the iShares Semiconductor ETF (SOXX.US), which tracks US-listed semiconductor stocks, also rose by 1% on Wednesday. Although the ETF has risen by 2% so far in October, it has still declined by 9.4% over the past three months. In comparison, the S&P 500 Index has risen by 3.9% over the past three months.
The overall performance of the US stock market was strong on Wednesday, with the Dow Jones Industrial Average rising by 1% to hit a new record high, while the tech-heavy Nasdaq Composite Index increased by 0.6%.
As of Wednesday, the cumulative increase of the S&P 500 Index in 2024 is 21.4%, slightly lower than the 22.5% year-to-date increase of the iShares Semiconductor ETF. According to FactSet data, this indicates that the semiconductor sector had a relatively strong performance at the beginning of the year, but recent trends have been somewhat weak