Dow Rises, Nasdaq Pressured by Chip Stock Sell-Off
Wall Street closed mixed on Tuesday (July 28th) after investors shifted away from semiconductor stocks and toward sectors more sensitive to economic growth. The Dow Jones Industrial Average rose 1%, the S&P 500 gained 0.2%, while the Nasdaq 100 fell 1%.
The market's gains were supported by strong corporate earnings reports and falling oil prices. The evenly weighted S&P 500 even set a new record, indicating that the gains are beginning to spread to more stocks.
Conversely, chipmaker stocks continued to come under pressure, pushing the Nasdaq 100 close to technical correction territory. The semiconductor sector is on track for its worst monthly decline since 2002.
The sell-off occurred as investors began to question whether substantial investments in artificial intelligence could yield comparable returns. These concerns arose after chip stocks posted their best quarter in history in the previous period.
The market now awaits Microsoft and MetaTrader 5's earnings reports on Wednesday, followed by Apple and Amazon on Thursday. The results and AI spending plans of these major companies will determine the next wave of tech stock sentiment.
Brent oil prices recorded their worst three-day decline since 2020, helping to pressure US bond yields. Ahead of the Federal Reserve's decision, economic and defensive sector stocks are likely to remain outperformers, while pressure on chip stocks could limit Nasdaq's movement. (arl)
Source: Newsmaker.id
