Dow Jumps 520 Points While Nasdaq Struggles Through Chip Stock Panic

1 month ago 33

Anders Bylund, The Motley Fool

Tue, July 28, 2026 astatine 12:05 PM CDT 4 min read

There's nary shortage of marketplace play today.

The net play is successful afloat swing. Chip stocks are plunging amid concerns astir AI infrastructure spending. President Trump is hosting Ukrainian President Volodymyr Zelenskiy and Israeli Prime Minister Benjamin Netanyahu astatine the White House for abstracted meetings. At the aforesaid time, Iran is negotiating an oil-shipping woody with Oman.

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Market indexes are moving successful antithetic directions. The Dow Jones Industrial Average (DJINDICES: ^DJI) is up 1.2% and gaining astir 520 points. The S&P 500 (SNPINDEX: ^GSPC) looks cautiously optimistic with a 0.4% rise. The Nasdaq Composite (NASDAQINDEX: ^IXIC) scale is dormant level astatine antagonistic 0%, but that's benignant of awesome considering it was down 1.3% successful the greeting session.

The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) is up 1.1%, importantly outperforming the cap-weighted index's gain. This divergence shows that mega-cap exertion stocks are creating astir of today's drag.

^DJI information by YCharts

Wall Street feels it erstwhile Asian markets panic

Semiconductor stocks are experiencing their sharpest diminution of the twelvemonth pursuing overnight panic selling successful Asian markets. Micron Technology (NASDAQ: MU) is down 8.1% and SK Hynix (NASDAQ: SKHY) is down 6.8%. The representation spot panic started with a volatility-based trading halt successful the South Korean marketplace agelong earlier the American markets opened. After past week's monolithic superior expenditure guidance from Alphabet and Tesla, Korean investors are asking the aforesaid question arsenic Wall Street: How agelong tin AI infrastructure spending proceed astatine existent levels?

The aforesaid concerns are weighing connected U.S. markets. The harm dispersed crossed the full spot sector. Intel (NASDAQ: INTC) is down by 8%, AMD (NASDAQ: AMD) fell 10%, and Sandisk (NASDAQ: SNDK) plunged 17%. Even mighty Nvidia (NASDAQ: NVDA) caught a cold, dropping 1%.

A ample question people and a banal chart.

Sandisk is present down 50% from its June peak, which is chaotic considering it's inactive the best-performing S&P 500 banal this twelvemonth with gains implicit 360%.

Meanwhile, boring aged concern and user stocks are carrying the Dow upward. Sherwin-Williams (NYSE: SHW) is up 8.3% aft beating net expectations. Paint seems much breathtaking than AI chips today. Caterpillar (NYSE: CAT) is the Dow's biggest drag, down 3.8% oregon astir 200 Dow points, but that's the downside of this operation instrumentality giant's transportation to AI information halfway projects.

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