US chip index falls over 5.4%, approaching 200-day moving average

The breadth of the selloff is the signal here: with only one of twenty constituents in the green and equipment names like Lam and KLA leading the decline, this reads as a sector-wide de-risking rather than an idiosyncratic story. The 200-day moving average now becomes the line in the sand, since the index has already surrendered its shorter-term trend markers. Whether that longer-term level holds is the open question, and it carries weight beyond semiconductors given how much of the broader equity tape leans on chip leadership.