After one of the most powerful rallies ever seen, the PHLX Semiconductor Index SOX is now in bear-market territory, dropping more than 20% from its highs.
Yet the S&P 500 SPX has withstood the heat and is up almost 10% this year so far
Investor Michael Burry and other AI bears have spent months warning that the Big Tech capex boom cannot last. To them, this latest selloff will look like vindication. But I see a healthier market emerging from it.
The market is rotating, not collapsing. Most Read from MarketWatch Money is not fleeing the market Look no further than the Invesco S&P 500 Equal Weight ETF RSP which hit another all-time high last week. More stocks are also trading above their key 200-day moving averages than at any time this year.