Chips crashed, KOSPI -10% — why did U.S. stocks hold?

Today's Market

On the 28th (local time), a global AI-chip rout sent the Nasdaq -0.2%, yet the Dow +1.0% and S&P +0.2% closed higher — the chip shock stayed contained, not a broad-market slide.

• Memory and AI chips sold off together — Micron (MU) -8.9%, AMD -8.2%, Marvell (MRVL) -7.8%, Philadelphia Semis (SOXX) -4.8%

• Asia sold off in tandem — KOSPI -10.8%, KOSDAQ -7.7%

• VIX -2.5% and the 10-year yield -3.7bp both fell — broad risk gauges stayed calm

Market Data

S&P 500

7,428.78

▲0.21%

NASDAQ

24,876.91

▼0.22%

DOW

52,747.32

▲1.03%

VIX

18.21

▼2.46%

Sector Heat Map

SPY benchmark + 11 GICS sectors · 1-day

S&P 500 SPY +0.24%	Technology XLK −1.84%	Comm. Svcs XLC +1.87%	Cons. Discr. XLY +1.48%
Cons. Staples XLP +1.99%	Energy XLE −1.35%	Financials XLF +1.27%	Health Care XLV +2.36%
Industrials XLI −0.39%	Materials XLB +1.85%	Real Estate XLRE +0.55%	Utilities XLU −0.35%

In Focus

The AI-chip trade cracks 📉

China competition and AI-spending doubts drove the chip sell-off

• A report of a China DUV (lithography) breakthrough stoked fears of eroding chip-competitive edge

• "AI-boom overheating" doubts spread — SK Hynix hit a record profit yet missed estimates, accelerating selling

• Retreating AI capex expectations hammered Asian memory names

Indices held despite the chip rout — rotation continues 🔄

Money leaving chips moved into software and value

• Workday (WDAY) +8.2%, IBM +5.2%, ServiceNow (NOW) +4.8% rallied

• The Dow's gain was powered by falling yields and low volatility supporting cyclical/value buying

• Direction defers to the 29th MSFT/Meta earnings and the FOMC

This Week

ALL TIMES EASTERN (ET)

• FOMC, Big Tech earnings and GDP/PCE cluster this week

• Wed 7/29 MSFT earnings | EPS est $4.24

• Wed 7/29 META earnings | EPS est $7.22

• Wed 7/29 ARM earnings | EPS est $0.40

• Wed 7/29 QCOM earnings | EPS est $2.22

• Wed 7/29 SBUX earnings | EPS est $0.67

• Wed 7/29 FOMC Rate Decision

• Thu 7/30 GDP

• Thu 7/30 Personal Income & Outlays (PCE)

• Fri 7/31 Michigan Consumer Sentiment

For informational purposes only. Not investment advice. All investment decisions are your own responsibility.

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