Stock Market Today: Dow Rallies, Chip Stocks Slide — WSJ

By Angus Berwick

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

A nearly 6% drop this 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. Five Dow components -- Sherwin-Williams, Salesforce, IBM, Coca-Cola and Boeing -- gained 4% or more. Consumer-staples and health-care stocks led the S&P 500, rising more than 2%.

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 around $82 a barrel while Iran and Oman use a lull in fighting to try to hammer out an agreement to reopen the Strait of Hormuz.

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(END) Dow Jones Newswires

July 28, 2026 15:12 ET (19:12 GMT)