Dow Rallies, Chip Stocks Slide — WSJ

By Angus Berwick

The Dow industrials were up more than 600 points, while chip stocks were selling off as investors ditched artificial-intelligence darlings in favor of other sectors that had been left behind this year.

A nearly 6% drop Tuesday morning in the PHLX semiconductor index, packed with names like Nvidia, Intel and Micron, briefly pulled the Nasdaq-100 index into correction territory, or 10% below a recent high. The Nasdaq composite also approached a correction before both tech-heavy benchmarks pared losses.

The big theme of the day, however, is rotation out of chips. Three Dow components--Sherwin-Williams, Coca-Cola and Salesforce--gained more than 5%. Consumer-staples stocks led the S&P 500 with a 2.7% bump.

Overseas, Asian tech shares sold off, with South Korea's Kospi index ending the day 10% lower and Japan's Nikkei dropping 4%. Concerns have been mounting over the cost of the AI boom and signs that China is catching up in the technological arms race.

In oil markets, prices continued to fall, with Brent crude futures below $82 a barrel while Iran and Oman use a lull in fighting to try and hammer out an agreement to reopen the Strait of Hormuz.

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(END) Dow Jones Newswires

July 28, 2026 13:01 ET (17:01 GMT)