BofA’s Hartnett Says US Semiconductor Stocks to Plunge If Payrolls Are Soft
- Philadelphia Semiconductor Index may fall 16% on poor job data
- “Perfect” payrolls report to reverse defensive outperformance
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Semiconductor shares including Nvidia Corp. are in for a rough ride if US jobs data Friday point to a hard landing for the word’s biggest economy, according to strategists at Bank of America Corp.
A reading below 100,000 together with an unemployment rate of more than 4.4% would trigger a selloff in stocks, sending the Philadelphia Semiconductor Index — which includes Nvidia, Broadcom Inc. and Advanced Micro Devices Inc. — to around 4,000, the strategists led by Michael Hartnett wrote in a note. That implies a 16% drop from current levels.