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Dow rises on strong earnings while Nasdaq extends chip sell-off ahead of Fed decision

S&P 500 futures fell as investors positioned for a week of major technology earnings and the Federal Reserve's policy announcement
WHY IT MOVED
The divergence between the Dow and Nasdaq reflects a rotation out of chip stocks even as other sectors hold up on solid earnings, with the Fed decision looming over technology valuations.
BREAKING Federal Reserve Markets & indices Big Tech & AI InstantWhy Newsroom 1h ago

The numbers

CNBC reports the Dow rose while the Nasdaq fell as a sell-off in semiconductor stocks continued. S&P 500 futures declined. Investors are preparing for a week packed with major technology company earnings reports and a Federal Reserve policy meeting.

Why it matters

Semiconductor stocks have been under pressure for days, and the continued selling suggests investors are reducing exposure to the sector's highest-flying names before this week's earnings tests and potential rate guidance. The split market shows earnings quality matters more than usual when monetary policy is in flux.

How this compares

Nasdaq futures have been sliding since late last week as the chip sell-off took hold. On July 28, technology stock futures fell ahead of the same packed week of earnings and Fed announcements. Markets have been positioning defensively ahead of results from major technology companies and the central bank's latest policy decision, with oil prices also falling as investors awaited Apple earnings and the Fed meeting on July 26.

What to watch

The Federal Reserve's policy announcement this week will clarify the rate outlook that has weighed on growth stocks. Major technology earnings reports will test whether the sector can justify valuations after the chip stock retreat. The Dow's resilience suggests investors are finding value outside technology if rates stay elevated.

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HOW THIS STORY WAS MADE

Sources

Artificially generated from public sources, explained in our own words, and published as fast as possible. Our team holds editorial responsibility. This is analysis, not investment advice.

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