S&P 500 Holds Up 0.6% as 20% Semiconductor Slide Drives Sector Rotation
Updated
Updated · Forbes · Jul 21
S&P 500 Holds Up 0.6% as 20% Semiconductor Slide Drives Sector Rotation
3 articles · Updated · Forbes · Jul 21
Summary
The S&P 500 rose 0.6% over the past month even as technology fell 5.4%, indicating a rotation rather than a broad market selloff.
Semiconductors are driving that split: the group has dropped about 20% after a strong first-half rally and carries nearly a 20% weight in the index.
Healthcare gained 7.4%, energy 6.4% and financials 4.5%, while value stocks beat the S&P 500 by 2.6% and small-caps by more than 3%.
Momentum has been hit hardest—MTUM lagged the S&P 500 by roughly 8.5% in a month—and 1-month volatility versus the index is at a 10-year high.
Low implied correlations near a 20-year low suggest stocks are moving independently, supporting the view that the bull market remains intact despite AI-stock turbulence.