About 72% of S&P 500 stocks are now trading above their 200-day moving average, the strongest market breadth since December 2024, even as semiconductor stocks like Sandisk and Micron suffer heavy losses. Charles Schwab strategist Kevin Gordon noted that having two-thirds of S&P 500 companies above that threshold is relatively healthy and consistent with a rotational market rather than a correctional one. Investors have rotated out of AI bets and into software, financials, industrials, healthcare, and consumer discretionary stocks, with strong earnings from companies like Coca-Cola helping offset negative reports from Alphabet and Tesla. The S&P 500's diversified makeup has allowed gains in software firms, internet platforms, banks, and retailers to cushion the impact of declines in chipmakers such as Nvidia, AMD, and Broadcom. Many market participants view the semiconductor sell-off as a repricing of AI infrastructure expectations rather than a signal of broader economic weakness.
Advanced Micro Devices Inc
Broadcom Inc
Alphabet Inc Class C
NVIDIA Corporation
Coca-Cola Europacific Partners PLC
The Coca-Cola Company
Charles Schwab Corp
Sandisk Corp
Tesla Inc