SOXX closed October below the 200-day moving average

The iShares Semiconductor ETF (SOXX) fell 17% in October, ending the month below its 200-day moving average as a broad selloff in semiconductor stocks weighed on the fund.

SOXX closed at $471.51 on Oct. 30, down from $568.64 on Sept. 30. The ETF hit an intraday low of $460.10, losing 8.24% on the final trading day of the month alone.

The October decline pushed SOXX below all five moving averages listed in its technical data. The ETF closed below its 5-day moving average of $502.04, 20-day average of $523.86, 50-day average of $529.12, and 100-day average of $544.16.

SOXX also ended the month below its 200-day moving average of $476.37, by approximately 1%. The 200-day average is a widely watched long-term trend indicator, making the move below that level a notable development for the semiconductor ETF.

Agar Capital warned that the selloff could deepen, arguing that semiconductor valuations remain vulnerable to slower earnings growth and margin normalization.

Agar Capital identified $471 as a key support level and warned that a break below it could open the way for further downside toward $438-$421. The analyst maintained its Sell rating on SOXX, favoring exposure to healthcare, consumer staples, and select software stocks over semiconductors.

The fund's top 10 holdings include Advanced Micro Devices (AMD), Nvidia (NVDA), Micron Technology (MU), Broadcom (AVGO), Intel (INTC), Texas Instruments (TXN), Analog Devices (ADI), Qualcomm (QCOM), Marvell Technology (MRVL), and KLA (KLAC).

Among these holdings, Intel was the biggest decliner in October, plunging 45.3%. Marvell Technology fell 25.67%, KLA dropped 18.99%, AMD lost 17.48%, Micron declined 16.93%, Qualcomm shed 10.46%, and Nvidia fell 10.39%. Broadcom slipped 7.15%, while Analog Devices and Texas Instruments gained 5.14% and 7.41%, respectively.

Despite the October pullback, SOXX remains up 56.57% year to date. Its position below the listed moving averages, however, reflects the extent of the recent weakness in semiconductor stocks.