The three major U.S. stock indexes have diverged trends. The Dow rose more than 500 points, Apple's stock price reached a new high, and chip stocks were bleeding

The three major U.S. stock indexes have diverged trends. The Dow rose more than 500 points, Apple's stock price reached a new high, and chip stocks were bleeding.

Traditional sectors were favored by funds, while chip stocks, which had been making great progress before, suffered sell-offs.

*The three major stock indexes had mixed gains and losses, with the Dow rising more than 500 points; * The sector rotation trend is obvious, chip stocks continue to plummet; *International oil prices continued to fall, with Brent oil falling nearly 5%. The three major U.S. stock indexes were mixed on Tuesday (28th).

Strong corporate financial reports and a fall in international oil prices have jointly boosted market sentiment. The Dow rose sharply, the Nasdaq continued its decline, and funds continued to rotate from the semiconductor sector to other sectors.

As of the close, the Dow rose 537.24 points, or 1.03%, to 52747.32 points; the Nasdaq fell 55.17 points, or 0.22%, to 24876.91 points; the S&P 500 index rose 15.60 points, or 0.21%, to 7428.78 points. Leading technology stocks were mixed. It closed up 2.83%, and SpaceX rose 2.63%.

The company rose 0.94%, and Nvidia rose 0.25%; in the falling camp, fell 0.23%, Meta fell 0.08%. Apple's intraday market value once exceeded $5 trillion, the first time in history. On the previous trading day, Apple had just surpassed Nvidia and once again became the world's most valuable listed company. Apple will report quarterly results on Thursday.

Since this year, Apple's stock price has risen by 25%, outperforming other leading technology stocks. Shares hit an all-time high of $342.89 on Tuesday before falling slightly.

While hyperscale cloud service providers such as Alphabet, Amazon, Meta and Microsoft are investing hundreds of billions of dollars in capital expenditures this year to build artificial intelligence infrastructure, Apple has maintained a low level of capital expenditures and relied more on cloud infrastructure and artificial intelligence technology provided by Google.

Chip stocks continued their decline, falling for a fourth consecutive session. fell 14.25%, SK Hynix fell 8.98%, Technology fell 8.85%, The VanEck Semiconductor ETF (SMH) closed down 3.45%, and its cumulative decline this month expanded to 19%, which is likely to be the worst monthly performance since 2008.

The iShares Semiconductor ETF (SOXX) closed down 4.80%, with a cumulative decline of more than 23% this month, which is likely to be the largest monthly decline since 2021. Most of the popular Chinese concept stocks closed higher. The Golden Dragon China Index closed up 1.08%.

Automobiles rose 4.68%, rose 1.01%, Tencent rose 0.93%, Holdings fell 2.33%, fell 2.24%, and Xpeng Motors fell 0.55%. According to market participants, recent market trends reflect a broader trend of capital rotation.

In the past few weeks, traditional industry sectors have continued to be favored by funds, while technology stocks, which had been riding high before, suffered a sell-off. The Technology Select Sector SPDR Fund (XLK) fell to its lowest level since early May.

At the same time, the Healthcare Select Sector SPDR Fund (XLV) and the Financial Select Sector SPDR Fund (XLF) both hit record highs, with insurance stocks particularly rising.

"This is a round of funding rotation with very broad coverage." Ross Mayfield, investment strategist at Baird, an American investment bank, said, "This round of funding rotation has lasted for six to eight weeks and is driven more by technical factors in the market rather than changes in fundamentals." However, he said whether funds will continue to flow

into more cyclical and interest-rate-sensitive sectors such as consumer discretionary will depend on whether oil prices and interest rates can remain near current levels.

"If the entire yield curve continues to rise and oil prices approach $100 a barrel, it will be difficult to fully demonstrate that consumer discretionary, financial or industrial sectors can continue to be sought after by funds," Mayfield said. The Federal Reserve will announce its interest rate decision on Wednesday.

Investors widely expect the Fed to remain on hold but will seek more clues on the path of future monetary policy from statements and official comments. According to FedWatch, the CME interest rate observation tool, federal funds rate futures latest show that the market expects the Federal Reserve to raise interest rates by 25 basis points in September.

This week, the financial reports of technology giants remain the focus of investors, with the market waiting for Amazon, Apple and Microsoft to announce their latest results.

Regarding the situation in the Middle East, according to Xinhua News Agency, US President Trump held talks with visiting Israeli Prime Minister Netanyahu at the White House on the morning of the 28th.

This is the first face-to-face meeting between the two since the United States and Israel jointly launched a large-scale military operation against Iran at the end of February. According to US media reports, the meeting lasted for more than an hour, and Trump had just held a talk with Ukrainian President Zelensky for about an hour.

White House Press Secretary Levitt posted on social media that both talks were "positive and productive." The White House has not released further details of the talks. International oil prices continue to fall. WTI September crude oil futures closed down $3.35, or 4.05%, at $79.26 per barrel, falling for three consecutive trading days.

Brent crude oil futures for September closed down $4.27, or 4.83%, to $84.09 per barrel. Precious metals markets are in the doldrums. COMEX gold futures fell 1.11% to US$4,090.40 per ounce. COMEX silver futures fell 2.50% to US$57.34 per ounce. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed

#Stocks #Nvidia #Apple #Microsoft #Meta