"Winter Is Coming": Chipmakers In Longest Slide Since 2018 As Morgan Stanley Downgrades Semis | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

"Winter Is Coming": Chipmakers In Longest Slide Since 2018 As Morgan Stanley Downgrades Semis

The semiconductor space has long been viewed as one of the best leading indicators of the modern technological economy (and capital markets), and with good reason: it was the first sector to bottom in March 2020 when it became apparent that China and various western central banks would inject trillions into the global economy, and had enjoyed a nearly relentless upward climb since then peaking just over a week ago on August 4, but then something snapped...

... and as shown in the next chart, the Semi Index is broadly lower again, having dropped for six consecutive sessions - the longest such streak since the October 2018 Fed "policy error" when stocks cracked after Powell threatened to tighten far more than markets expected, only to end his hiking cycle prematurely just two months later, resulting in the first bear market in a decade.

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