Dow Gains Over 500 Points as Nasdaq Struggles Amid Chip Stock Sell-Off
The Dow Jones Industrial Average surged more than 520 points, or 1.2%, on July 28, while the Nasdaq Composite remained nearly flat amid a sharp decline in chip stocks driven by concerns over slowing AI infrastructure spending. The S&P 500 rose modestly by 0.4%. Memory and semiconductor companies such as Micron Technology, SK Hynix, Intel, AMD, Sandisk, and even Nvidia saw significant declines following panic selling in Asian markets overnight. Investors are rotating out of expensive tech stocks into traditional sectors like industrials and consumer goods, with Sherwin-Williams rising 8.3% on strong earnings results. Meanwhile, Caterpillar declined due to its exposure to AI data center projects. Oil prices also fell as the U.S. paused air strikes against Iran in favor of diplomatic talks. The market is bracing for key earnings reports from Microsoft and Meta Platforms on Wednesday and Apple and Amazon on Thursday. These companies have signaled substantial capital expenditures, which could influence both short-term volatility and longer-term trends.
Tickers: $AMD $CAT $INTC $MU $NVDA $SHW $SKHYV $SNDK
Topics: AI infrastructure spending chip stocks Dow Jones Nasdaq stock market