# Chips' October slump against the market was the widest since 2002, and the gap closed fast
Latent Equity · published Oct 29, 2026 · Semiconductors
Post: https://x.com/Latent_Equity/status/2115808941531640276

Our read: chips' October slump against the market was extreme, and the gap closed fast.
$SOX fell 13.98 points more than the S&P 500 over the 9 trading days to Oct 16 (-15.45% vs -1.47%), the widest gap since Sep 5, 2002 (our calc). By the Oct 27 close it was back to -1.78.

The gap is simple: $SOX's % change over 9 trading days minus the S&P 500's. Below zero means chips lagged.

It took 7 trading days to climb back above the worst-5%-of-days line (-7.43).

In the 16 past drops this deep, $SOX's median move from the day each drop first got this deep was +2.8% a month later and +7.1% after 3 months, but -3.2% after 6 months.

Caveat: all 16 come from 1995 to 2002, one boom and bust, and some overlap. It's history, not a forecast.

What would prove us wrong:
- the gap sinks back below -7.43 in the coming weeks.

General research, the same for every reader. Not investment advice.