LIVE MARKETS-Chip sector rebound faces test as Nvidia tumbles 

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CHIP SECTOR REBOUND FACES TEST AS NVIDIA TUMBLES

Futures tied to the Nasdaq 100 .NDX are leading Wall Street lower on Thursday with Nvidia NVDA.O tumbling more than 8% in premarket trading as reports that its board is weighing the future of CEO Jensen Huang rattle AI-related shares across the chip sector. The PHLX Semiconductor ETF SOXQ.O is down more than 2.5%.

Chip stocks have been under pressure since the PHLX Semiconductor Index .SOX peaked on June 22. The index slid 38.4% into its November 5 low, nearly reaching the maximum Fibonacci retracement zone of its March-June rally in the 8,870-8,704 area after touching 8,997 intraday.

The SOX has bounced over the past four sessions, climbing as high as 10,787 before closing Wednesday at 10,564. However, the rebound now appears to be stalling just below a major resistance cluster. The 200-day moving average ended Wednesday at 10,867, almost identical to the 50% retracement level of the March-June advance at 10,869.

On the downside, bulls will be watching the 61.8% retracement near 9,976. A break below that level would raise the risk of another test of the November 5 low and the maximum retracement zone. Below there, support is sparse until the late-February high at 8,498. The large April 8 gap, which would not be filled until 8,006, could also act as a downside magnet. A retreat to the March 30 low at 7,084 would amount to a roughly 52% decline from the SOX's record closing high.

A recovery above the 200-day moving average would improve the technical picture, but the index would still face several layers of overhead resistance before reviving any credible new-highs scenario.

Meanwhile, Nvidia's relative strength versus the SOX peaked in early August 2025 and had been trending lower well before the semiconductor index topped on June 22, suggesting chip leadership had already begun to broaden. While Nvidia's troubles are weighing on the sector, the relative-strength trend indicates weakness in the stock does not necessarily doom the broader group's recovery prospects.

That view is getting some support from Thursday's premarket action, with AMD AMD.O and Broadcom AVGO.O up about 1.7% and 0.7%, respectively, even as Nvidia slides more than 8%.

(Terence Gabriel)

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EARLIER ON LIVE MARKETS:

EUROPEAN CONSUMPTION TO SLOW AS WINTER BITES CLICK HERE

AI BOOM MAY ALREADY HAVE PEAKED CLICK HERE

DRUGS BOUGHT, CHIPS SHUNNED: STOXX ON A HIGH CLICK HERE

BEFORE THE BELL: EUROPE PUSHES TOWARD NEW RECORD CLICK HERE

JENSEN HANGS ON AS NVIDIA TUMBLES CLICK HERE