S&P 500 Rises 8% as Chipmakers Jump 63% and Big Tech AI Spending Weighs
Updated
Updated · Bloomberg · Jul 28
S&P 500 Rises 8% as Chipmakers Jump 63% and Big Tech AI Spending Weighs
3 articles · Updated · Bloomberg · Jul 28
Summary
An 8% gain in the S&P 500 this year has been carried largely by semiconductor stocks, even as some of the index’s biggest tech names have dragged on returns.
A chipmaker index was up 63% through Monday’s close because investors rewarded companies benefiting from AI buildout, while punishing Microsoft, Meta and Amazon for heavy capital spending on AI.
That leadership has been volatile: the chipmaker gauge slipped into a bear market earlier this month, fell 2.2% on Monday and was down again early Tuesday.
The split sets up a key earnings week for Microsoft, Meta and Amazon, with investors testing whether AI spending can keep supporting the broader rally.