S&P 500 Inches Higher as Investors Rotate Out of Chip Stocks Into Defensives

On July 28, U.S. stocks delivered a mixed session, with the S&P 500 finishing modestly higher while the tech‑heavy Nasdaq slipped. The main drag came from semiconductor names tied to the AI build‑out, where investors are increasingly questioning whether massive data‑center spending will ultimately translate into profits. By contrast, more defensive sectors and selected industrials attracted buying, helping the broader benchmark stay in positive territory.

Gains in traditional blue chips such as Boeing and Coca‑Cola offset the pressure on high‑growth tech, reflecting a gradual rotation toward value and dividend‑oriented names. Investors are now focused on this week’s earnings from Apple and other megacap tech firms, as well as the Federal Reserve’s policy meeting, which could reshape expectations for interest rates. The market is trying to balance enthusiasm about AI’s long‑term potential with near‑term concerns about capital intensity and margins. For global investors, the session underscored the importance of diversification beyond a narrow group of AI leaders, as sector leadership may shift quickly depending on earnings and Fed signals.