Technology ETFs decline on semiconductor weakness

What happened: The Direxion Daily Semiconductor Bull 3X ETF (SOXL) has crashed, falling 10% or more for four consecutive days, including a 12.8% drop on July 27. Micron's 30% decline has dragged down the iShares Semiconductor ETF (SOXX), which has fallen 20% from its June 22 high. Asian stocks, including semiconductor stocks, have dropped by almost 23% since June 22. Sandisk plunged 11% on July 27 due to memory weakness.

Market impact: The semiconductor sector is experiencing a significant downturn, with key players like Micron and Sandisk driving the decline. This has led to a broad sell-off in semiconductor ETFs, including SOXL and SOXX. Investors are seeking diversification into broader tech ETFs as a result.

What to watch next: Intel's (INTC) earnings, scheduled for July 29, could provide insight into the semiconductor sector's performance. Additionally, the iShares Semiconductor ETF's (SOXX) next earnings date on August 11 may offer further clarity on the sector's trajectory. Lastly, the broader tech sector's performance, particularly in momentum stocks, will be crucial to watch, as investors may continue to shift towards broader tech ETFs.