NEW YORK — The S&P 500 recorded its first July decline since 2014, ending a nine-year streak of positive July performance as investors recalibrated expectations across several key sectors.
Semiconductor stocks led the selloff, suffering their worst monthly performance in 24 years. The sector, a bellwether for technology and AI infrastructure spending, faced sustained selling pressure throughout July on concerns over potential oversupply and slowing enterprise spending.
Major technology companies, which carry substantial weight in the S&P 500, contributed to the index's negative finish. Concerns over valuation and the pace of future growth weighed on investor sentiment.
On Aug. 1, the S&P 500 opened higher, trading at 7,490, up 0.7 percent, suggesting some stabilization after July's losses.
Apple shares fell sharply, dropping 7.4 percent to $308.91. The decline in one of the index's largest components added to broader market volatility.
Nvidia rose 2.9 percent to $200.75, with buyers returning to the stock after the chip sector's punishing July.
Amazon surged 15.3 percent to $271.58, offering a sharp counterpoint to Apple's drop and July's broader weakness. Microsoft gained 3.0 percent to $464.72. Alphabet climbed 6.7 percent to $356.13. The moves highlight a clear split in large-cap tech performance at the start of August.
Federal Reserve Chair Kevin Warsh has maintained a firm stance on inflation, saying rate cuts are not appropriate until the central bank sees sustained progress toward its 2 percent target—an outlook that continues to weigh on rate-sensitive growth stocks.
