A sharp selloff in mega-cap chipmakers drove sweeping ETF losses Thursday, pushing the Nasdaq Composite into correction territory and dragging technology-focused funds down by as much as 11%. The chipmaker rout drives ETF losses across every major sector, with semiconductor funds taking the heaviest hit as US equity indexes entered a midday meltdown.
Semiconductors Lead the Decline
The damage was most severe among semiconductor exchange-traded funds. The iShares Semiconductor ETF (SOXX) dropped 11.3%, while the SPDR S&P Semiconductor ETF (XSD) fell 11.1%. Those declines stood out even against a broader technology retreat that saw the Technology Select Sector SPDR ETF (XLK) lose 7.5%.
Other tech funds followed closely. The iShares Expanded Tech Sector ETF (IGM) was 7% lower, and the iShares US Technology ETF (IYW) shed 6.6%. The actively traded Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, fell 6.1%.
Broad Market and Sector Losses
Broad-market funds also moved lower. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P 500 ETF (IVV) both declined, though the source did not specify their percentage moves.
Financials were not immune. The Financial Select Sector SPDR ETF (XLF) fell 2.7%. The Direxion Daily Financial Bull 3X Shares (FAS) dropped 7.4%, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), gained 7.1%.
Consumer-facing funds showed a split. The Consumer Staples Select Sector SPDR ETF (XLP) slipped 0.5%, and the Vanguard Consumer Staples ETF (VDC) lost 0.4%. The Consumer Discretionary Select Sector SPDR ETF (XLY) fell 4.5%, the VanEck Retail ETF (RTH) shed 1.4%, and the SPDR S&P Retail ETF (XRT) eased 3.2%.
Healthcare funds also retreated. The Health Care Select Sector SPDR ETF (XLV) was down 1.7%, the iShares US Healthcare ETF (IYH) fell 2%, and the Vanguard Health Care ETF (VHT) dropped 2.1%. The iShares Biotechnology ETF (IBB) declined 4%.
Industrials added to the downbeat tone. The Industrial Select Sector SPDR ETF (XLI) slipped 3.9%, the Vanguard Industrials Index Fund (VIS) was down 4.3%, and the iShares US Industrials ETF (IYJ) eased 3.9%.
Energy and Commodities Move Against the Tide
Energy was a rare pocket of relative stability. The iShares US Energy ETF (IYE) fell 0.9%, and the Energy Select Sector SPDR ETF (XLE) lost 0.76%.
Commodities mostly advanced. Crude oil added 2.6%, and the United States Oil Fund (USO) rose 2%. Natural gas gained 0.7%, with the United States Natural Gas Fund (UNG) up 1%. Gold on Comex rose 1.1%, and the SPDR Gold Shares ETF (GLD) added 0.9%. Silver rose 0.3%, and the iShares Silver Trust (SLV) gained 0.2%.
Crypto-Linked Funds Under Pressure
Bitcoin fell 5.1% in midday activity, weighing on cryptocurrency ETFs. The ProShares Bitcoin ETF (BITO) lost 5.2%, the ProShares Ether ETF (EETH) dropped 7.3%, and the ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was down 5.6%.
What the Numbers Show
The scope of Thursday’s selling was unusually wide. Every sector ETF cited in the source moved lower except for the bearish financial fund, while commodity funds and the US dollar-linked gold and silver trusts moved higher. The concentration of losses in semiconductor and technology funds underscored how heavily the market’s midday slide was tied to chipmakers.
For investors holding broad technology exposure, the session’s declines were steep enough to erase weeks of gains in a single afternoon. The Nasdaq’s entry into correction territory — typically defined as a drop of at least 10% from a recent high — marked a psychological milestone that added to the selling pressure.
Whether the rout extends into the next session remains to be seen, but the breadth of Thursday’s ETF declines suggests the chipmaker selloff reverberated well beyond the semiconductor sector itself.
