Rising oil prices trigger inflation concerns, causing a rise in U.S. bond yields which dragged down the semiconductor sector. Qnity Electronics (Q.US) dropped by 7.9%.

Under the dual pressure of soaring oil prices and rising interest rates, the global semiconductor sector was generally under pressure on Thursday, with many chip industry stocks experiencing significant declines. Market participants pointed out that this round of adjustment is not closely related to the demand for artificial intelligence or cloud computing capital expenditure, but the main reason comes from inflation concerns brought about by the increase in energy prices and the rise in US bond yields. Data shows that semiconductor manufacturing material company Qnity Electronics (Q.US) saw a sharp drop of 7.9% on Thursday, becoming one of the stocks with the largest decline in the S&P 500 index at one point during the trading day. Peer companies also faced sell-offs. Entegris, Inc. (ENTG.US) dropped by 5.34%, ASML Holding NV ADR (ASML.US) by 2.5%, and Intel Corporation (INTC.US) by 5.69%. It is worth noting that this decline in the semiconductor sector did not have any obvious industry-specific negative news. Tech giants including Amazon.com, Inc. (AMZ.US) and Meta Platforms (META.US) did not release any new capital expenditure updates, and Wall Street analysts did not make any significant rating adjustments to related companies. The market generally believes that this round of decline is mainly influenced by macro factors. As the Iran conflict escalated, pushing energy prices higher, investors were concerned that the surge in oil prices might reignite inflationary pressures. Data shows that the US 10-year Treasury yield rose to 4.27% on the day, an increase of about 0.3 percentage points since the outbreak of the conflict. Meanwhile, the international benchmark Brent crude oil price rose by approximately 10%, surpassing $101 per barrel. Analysts point out that the semiconductor industry is capital-intensive and has a long cycle. It usually takes several years to build a chip manufacturing plant, and significant profits can only be realized when the capacity utilization rate is high. Therefore, rising interest rates often have a significant impact on the industry's investment cycle. Adrian Helfert, Chief Investment Officer of Westwood Multi-Asset Strategies, said that higher interest rates not only increase corporate financing costs but may also weigh on economic growth, thereby restraining corporate capital expenditure, which is particularly unfavorable for industries like semiconductors that rely on long-term investments. Of course, rising interest rates also pose pressure on other capital-intensive industries. For example, the mining sector is also under pressure. Freeport-McMoRan Copper & Gold (FCX.US) fell by 3.79%, and the engineering machinery giant Caterpillar Incorporated (CAT.US) fell by about 1%. Overall, the US stock market saw a general retreat on that day, with the S&P 500 index and the Dow Jones Industrial Average index falling by 1.52% and 1.56% respectively. However, compared to other industries, the decline in the semiconductor industry chain was more pronounced. Market analysis believes that in the current environment, the trend of interest rates remains an important factor affecting the valuation of tech stocks, while the inflation expectations brought about by the rise in energy prices further exacerbate investors' cautious sentiment. So"Due to double pressure from rising oil prices and increasing interest rates, the global semiconductor sector was generally under pressure on Thursday, with many chip industry stocks experiencing significant declines. Market participants pointed out that this round of adjustment is mainly due to inflation concerns brought about by the increase in energy prices and the rise in US bond yields, rather than the demand for artificial intelligence or cloud computing capital expenditure. It is worth noting that this decline in the semiconductor sector did not have any obvious industry-specific negative news. Peer companies also faced sell-offs, with tech giants like Amazon.com, Inc. and Meta Platforms not making any new capital expenditure updates. The market believes that the rise in interest rates may have a significant impact on the semiconductor industry's investment cycle, as it is capital-intensive and has a long cycle. High interest rates not only increase corporate financing costs but may also weigh on economic growth, thereby restraining corporate capital expenditure. Rising interest rates also pose pressure on other capital-intensive industries, such as the mining sector. Overall, the US stock market saw a general retreat on that day, with the semiconductor industry chain experiencing a more pronounced decline compared to other industries. Market analysis believes that the trend of interest rates remains an important factor affecting the valuation of tech stocks, while the inflation expectations brought about by the rise in energy prices further exacerbate investors' cautious sentiment."