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S&P 500 slides as investors rotate away from tech and semiconductors
The SOX semiconductor index has fallen 20% from its record highs as investors pull back from chip stocks, with second-quarter results due through July 24.
The S&P 500 fell over two sessions as investors sold tech shares and shifted toward other parts of the market, according to analysis from Action Forex.
The report links the selloff catalyst to the announcement that Chinese firm Moonshot unveiled the Kimi K3 model, which it says outperforms US rivals and revived comparisons to an earlier market downturn triggered by DeepSeek.
Action Forex also points to growing doubts about the pace of AI spending, noting that Magnificent Seven mega-cap growth has slowed since the start of the year and that the weighted S&P 500 measure hit a record high on 16 July, indicating broader market participation beyond a few issuers.
Within tech, the focus has moved to semiconductors, with the SOX index down 20% from record levels, while investors look ahead to second-quarter results from General Motors, Alphabet, IBM, Tesla, Intel, and Verizon through July 24. The report adds that the resurgence of Middle East conflict and oil’s move higher has not yet affected the S&P 500, though it could contribute to longer-lasting inflation and higher federal funds rate expectations.
Latest closeS&P 500 7,533.77 ▼0.5%