Dow Jones and S&P 500 remain resilient despite tech sector weakness, with most stocks trading above key moving averages.
The recent decline in chip stocks has not weighed on broader market indices, as the Dow Jones Industrial Average holds near record highs and above all major moving averages. The S&P 500 remains above its 100-day and 200-day moving averages, though it dipped below the 50-day last week.
Two-thirds of S&P 500 companies are trading above their 200-day moving averages, signaling a rotational rather than correctional market. Cyclical stocks and the equal-weighted index reflect economic strength, while earnings reactions outside tech have been positive.
Market pressure has been concentrated in the tech sector, with financials, industrials, and consumer discretionary stocks showing resilience. Analysts warn that a reversal in these trends could shift sentiment.