There is a capital rotation of US$3.2 trillion in the U.S. stock market, and the S&P 500 index maintains a volatile pattern
There has been a large-scale capital rotation in the U.S. stock market recently. Data show that as investors shifted funds from the semiconductor sector to technology giants and software companies, a market value transfer of approximately US$3.2 trillion occurred between the two major sectors, causing the overall trend of the S&P 500 Index to trend sideways. According to market statistics, as of mid-July, the total market value of the "Magnificent Seven" in the U.S. stock market has increased by approximately US$1.5 trillion in July; in contrast, the market value of the semiconductor sector other than Nvidia has shrunk by nearly US$1.7 trillion during the same period. The two constitute this round of large-scale inter-sector capital rotation of US$3.2 trillion. At the same time, the traditional software sector, which had previously been squeezed by the AI concept, rebounded sharply. 44 of the 51 major software companies monitored by the sample achieved gains, with the median monthly increase reaching 6%. Analysts pointed out that despite profound adjustments to the market's internal structure and capital flows, as the gains in technology giants and software stocks effectively hedged against the dramatic correction in the semiconductor sector, the S&P 500 index, the benchmark indicator for the U.S. stock market, did not experience severe unilateral fluctuations and continued to fluctuate within a narrow range in the short term. Industry insiders said that market funds are currently being reallocated from highly valued semiconductor stocks to relatively stagnant technology leaders and software sectors in order to find a new valuation balance point.