Nasdaq Slides 2.9% as Tech Stock Selloff Reflects Capital Rotation, Not Market Collapse

US5000.42%
SOXX2.14%
According to MarketWatch, U.S. tech stocks fell on July 17, with the Nasdaq Composite declining 2.9% last week, the largest weekly drop since late June. However, Wall Street strategists argue this represents healthy capital rotation rather than the start of a broader market downturn. Energy, retail, banking, and transportation sectors gained simultaneously as chip stocks declined. The S&P 500 equal-weighted index, which tracks broader market performance, outperformed the semiconductor-heavy Nasdaq by over one percentage point, with the iShares Semiconductor ETF recording its weakest relative performance versus the Invesco S&P 500 Equal Weight ETF since May 2009. According to EP Wealth's Adam Phillips, AI investment themes remain intact despite semiconductor weakness. As of Friday, 66% of S&P 500 constituents remained above their 200-day moving averages.
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