BTIG Analyst Warns U.S. Stocks May Face Major Correction; Semiconductor Index Down 20% Since June

According to BTIG chief market technician Jonathan Krinsky on July 18, the biggest market risk is not a single negative catalyst, but investors questioning previously held market logic. The Philadelphia Semiconductor Index has fallen about 20% from its June peak, entering bear territory, while South Korea's KOSPI Index (Korean benchmark equity index) has dropped over 25% and Japan's Nikkei 225 has entered a technical correction, reflecting global tech stock pressure.

Krinsky warned that the U.S. stock market may repeat 2024's summer selloff, with the S&P 500 potentially breaking below its 200-day moving average at 6,983 points. If this occurs, semiconductor stocks may weaken further. He noted the concerning aspect is the selloff lacks a clear catalyst, despite concerns about chip sector gains moving too fast, large tech companies' heavy borrowing, and Federal Reserve policy uncertainty.