Data from Bespoke Investment Group reveals that despite the recent surge in Nvidia's (NVDA, Financial) stock price, semiconductor stocks underperformed compared to the S&P 500 index this month. The S&P 500 climbed 0.7% to a record high of 5792.04 points, while Nvidia's stock dipped nearly 0.2%, narrowing its October gain to 9.2%.
Bespoke's report indicates that although Nvidia's technical performance has improved, the broader semiconductor sector remains under pressure. The Philadelphia Semiconductor Index has been constrained throughout the summer, even as it surpassed its 50-day and 200-day moving averages.
According to FactSet data, the Philadelphia Semiconductor Index (SOX) rose 1.1% on Wednesday, with the Invesco Philadelphia Semiconductor ETF (SOXQ) also gaining 1%. Bespoke noted that while the sector's early September sell-off was milder than in August, the index has formed "higher lows," potentially signaling a positive trend, though it has yet to reach new highs.
Meanwhile, the iShares Semiconductor ETF (SOXX) also increased by 1% on Wednesday. Despite a 2% rise in October, the ETF has declined 9.4% over the past three months, compared to the S&P 500's 3.9% gain during the same period.
Overall, U.S. stock markets performed strongly. The Dow Jones Industrial Average rose 1% to a record high, and the tech-heavy Nasdaq Composite increased by 0.6%. As of Wednesday, the S&P 500 posted a 21.4% gain in 2024, slightly below the iShares Semiconductor ETF's 22.5% year-to-date increase, indicating early strength in the semiconductor sector but recent weakness.
