[Philadelphia Semiconductor Index Surges Monday, Struggling to Recover Losses Despite Extremely Overbought to Oversold Position in Five Months] On Thursday (November 5th), the Philadelphia Semiconductor Index was 17% below its 200-day moving average, its largest negative deviation since April 2025. This is also the second largest such deviation since the 2022 bear market. In comparison, after the 2008 financial crisis and the bursting of the dot-com bubble in 2000, the index fell to -49% and -52%, respectively. This contrasts sharply with June, when the index was 75% above its 200-day moving average, its largest positive deviation since 2000. In other words, semiconductor stocks have gone from extremely overbought to oversold in just five months. Semiconductor stocks have just experienced one of the most dramatic swings in decades. On Monday (November 9th), the Philadelphia Semiconductor Index surged 7.4%, on track for its largest single-day gain since its 8.2% jump on July 30th. Even with such a significant increase, the Philadelphia Semiconductor Index only recovered 53.4% of the losses from last week. Last week, the index fell 12.2%, marking its fifth consecutive weekly decline.
