Lower oil prices and bond yields fuel rotation into defensive sectors, offsetting semiconductor weakness and lifting broader equities.
The equal-weighted S&P 500 rose 1.14% to a record high, its best day in over a month, as investors shifted into defensive and non-tech sectors. Lower oil prices and bond yields supported the broader market, while semiconductor stocks continued to decline.
The Philadelphia semiconductor index fell 4.49%, extending its drop to 24.6% below its June 22 peak, though it remains up 55.8% year-to-date. The NASDAQ 100 slipped 0.98%, nearing correction territory. Meanwhile, Apple briefly exceeded a $5 trillion market cap before closing at $4.995 trillion.
In Asia, South Korea’s KOSPI dropped 12% amid a chip-led sell-off, triggering a circuit breaker. Australian equities advanced after softer inflation data reduced expectations of further Reserve Bank of Australia tightening.