US stocks show divergent trends: AI-related stocks continue to plunge while traditional economy stocks enjoy a surge

Glonghui, July 29 | US stocks showed mixed performance on Tuesday as market rotation accelerated. Investors continued to exit AI-related stocks such as chips, shifting to traditional sectors with more attractive valuations. The three major indexes closed with mixed results: the Nasdaq fell 0.22%, the Dow rose 1.03% to 52,747.32 points, just shy of its historic closing high of 53,055.91, and the S&P 500 rose 0.21%. Among the constituents, Coca-Cola, JPMorgan, and 3M all reached record closing highs. Most large tech stocks also rose, with Netflix, Google, and SpaceX up more than 2%, Microsoft up over 1%, and Apple and Nvidia posting small gains; Tesla, Amazon, and Meta saw slight declines. Apple continued to reach new highs, with its intraday market value surpassing 5 trillion USD for the first time. The Philadelphia Semiconductor Index, however, continued to fall by 4.49%. In the storage sector, Micron Technology ended down 8.85%, SK Hynix dropped 8.98%, SanDisk plunged 14.25%, and has already been cut in half since July; in the optical communications sector, Corning fell more than 12% and Coherent declined over 10%. Dell Technologies dropped 8.15%, Intel fell 5.86%, and AMD lost 8.15%. The software sector, which has long been overshadowed by AI, continued to perform strongly on Tuesday, with Adobe closing up 4.81%, IBM up 5.21%, Salesforce up 4.55%, Workiva up 6.76%, and Thomson Reuters up 5.66%.