Choppy Trading in U.S. Chip Stocks Amid Tensions Over Export Curbs

Trading was volatile for U.S. chip stocks on Thursday as the Philadelphia semiconductor index managed to close higher after heavyweights like Nvidia and Broadcom contributed significantly. Earlier, chip stocks in Asia had sold-off due to reports that the U.S. is considering stricter export curbs on advanced chip technology to China.

Trading in U.S. chip stocks showed volatility on Thursday, with the Philadelphia semiconductor index ending the day higher, recovering from a sharp fall on Wednesday. Major contributors included giants like Nvidia and Broadcom.

Earlier in the day, chip stocks in Asia faced sell-offs following a report that the U.S. might tighten curbs on exporting advanced chip technology to China. The Biden administration is considering invoking the foreign direct product rule, which would halt the sale of products made using American technology.

The Philadelphia Semiconductor Index had dropped 6.8% on Wednesday, posting its weakest session since March 2020. Despite opening 1.7% higher on Thursday, it experienced significant fluctuations before closing up 0.5%, thanks to Nvidia and Broadcom. Meanwhile, stocks like Advanced Micro Devices failed to recover, ending the day down.

(With inputs from agencies.)