The $SMH semiconductor ETF experienced a notable decline on January 27, 2025, closing down 10.92% after breaking below its 200-day moving average on high trading volume. This marked the ETF's third-worst day since its inception in 1998. The ETF was down 6% in premarket trading, indicating a negative sentiment that persisted throughout the day. Analysts highlighted the poor performance of semiconductor stocks, contributing to the overall downturn in the sector.