US equities reached new record highs, with the equal-weighted S&P 500 posting its best day in over a month, up +1.14%, and closing at a record high, supported by lower oil prices and bond yields. The standard S&P 500 index also gained, closing +0.21% higher. This positive momentum was driven by a rotation into defensive and non-tech sectors, as investors moved away from technology stocks due to ongoing weakness in the semiconductor sector [1].
Semiconductor stocks experienced significant declines, with the Philly semiconductor index dropping -4.49%, leaving it -24.6% below its June 22 high, though it remains up +55.8% year-to-date. The NASDAQ 100 fell -0.98%, ending just half a percent from technical correction territory. Despite the broader tech sell-off, Apple shares rose +0.94%, briefly surpassing a $5 trillion market capitalization for the first time before closing just below that level at $4.995 trillion. Apple is scheduled to report earnings tomorrow, alongside Amazon, following earnings reports from Microsoft and Meta [1].
In Asia, the KOSPI index in South Korea suffered a dramatic sell-off, plunging around 12% and triggering a circuit breaker for the second consecutive day. This was driven by a reassessment of AI-driven valuations, particularly after SK Hynix shares fell -16.5% as its +557% surge in quarterly profits failed to meet market expectations. Samsung shares, which are set to report earnings tomorrow, also declined -11.0%. The Nikkei dropped -2.29%, while the CSI 300 and Shanghai Composite posted more modest declines of -0.24% and -0.50%, respectively. In contrast, the Hang Seng index outperformed, rising +1.34%, and the S&P/ASX 200 advanced +1.10% after softer-than-expected inflation data reduced expectations of further tightening by the Reserve Bank of Australia [1].
CONCLUSION
The record highs in US equities highlight investor optimism outside the tech sector, even as semiconductor stocks face sharp declines. Asian chipmakers, particularly in South Korea, are under significant pressure due to unmet profit expectations and valuation concerns. Market sentiment remains mixed, with defensive sectors and select regional markets outperforming amid ongoing volatility in technology shares.