Key Highlights

● Vishay slipped Friday in a chip-sector selloff tied to borrowing costs and Fed messaging.

● No company-specific news on Vishay was reported for the session.

● All 30 members of the PHLX Semiconductor Index fell, taking it to 11,137.29.

● Texas Instruments reports Oct 21 and could offer a read on component demand.

Caught in the chip selloff

Vishay Intertechnology (NYSE:VSH), a maker of discrete semiconductors such as diodes and MOSFETs and passive components including resistors, inductors and capacitors, slipped on Friday, according to market reports. Those reports tied the decline to a chip-sector selloff driven by borrowing costs and by remarks from Federal Reserve Chair Kevin Warsh putting price stability first.

No company-specific news on Vishay was reported. Its products go into cars, industrial equipment, computers and telecommunications gear, making it a broad supplier to the electronics industry rather than a pure artificial intelligence play. Market reports grouped the S&P MidCap 400 member with FormFactor (NASDAQ:FORM), Teradyne (NASDAQ:TER), Penguin Solutions (NASDAQ:PENG) and Applied Materials (NASDAQ:AMAT) among the chip stocks that traded down.

Warsh and the rate backdrop

Warsh spoke at an IMF gathering in Bangkok and declined to signal the Fed's next move. "I don't prejudge meetings," he said. Other reports added that he will not pre-announce decisions for the remaining two meetings of 2026 and that he said global performance has broadly matched the Fed's expectations since its September rate increase.

The Fed raised rates by a quarter point in September, its first hike in three years. Odds of another increase at the Oct 28 meeting fell sharply after spiking on Wednesday's hotter-than-expected consumer price report, but futures still priced roughly one quarter-point hike by December. Bank of America still expects an October hike.

The 10-year Treasury yield eased to roughly 5.1 on Friday after topping 5.3 earlier in October, its highest since 2002.

Semiconductors extend their slide

The chip sector had another difficult day. The PHLX Semiconductor Index fell to 11,137.29, with all 30 of its members lower, according to market data. Several reports counted an eighth straight decline for the group, while others described the streak in different terms, so reports differed on its length.

Bigger chipmakers led the way down. Advanced Micro Devices (NASDAQ:AMD) sank, Intel (NASDAQ:INTC) tumbled and Micron Technology (NASDAQ:MU) slid. Among smaller names, FormFactor and Penguin Solutions fell and Amkor Technology (NASDAQ:AMKR) slipped.

The broader market

Stocks gave up early gains as selling deepened through the afternoon. The Nasdaq Composite fell 572.99 points to 26,140.03, the S&P 500 dropped 84.62 points to 7,659.44 and the Dow Jones Industrial Average slipped 175.28 points to 52,002.41. The Russell 2000 lost 45.90 points to about 2,721. No closing level for the S&P MidCap 400 was available.

Investors rotated into energy, utilities and consumer staples. On the data front, September industrial production rose more than expected, with output reaching its highest level since 2018, per market data.

Vishay Awaits Texas Instruments' Read

On the macro side, S&P Global's purchasing managers' indexes are due Oct 23, the Fed decides on Oct 28, and the PCE inflation report and first estimate of third-quarter GDP follow on Oct 29. Investors will watch for any shift in tone from Warsh and other Fed officials ahead of the meeting.

Chip earnings arrive next week. Lam Research (NASDAQ:LRCX) and Texas Instruments (NASDAQ:TXN) report Wednesday, Oct 21, after the close, and Western Digital (NASDAQ:WDC) reports Thursday, Oct 22. Intel reports Oct 29. Texas Instruments, a large analog chipmaker with broad industrial exposure, could offer a read on demand relevant to component suppliers such as Vishay.