NEW YORK, July 28, 2026, 12:00 EDT — The Dow advanced, lifting broad US equities, but a sharp decline in semiconductor shares further fractured the market.
- The S&P 500 gained 0.41% to trade at 7,443.91 just before midday.
- The Dow rose roughly 1.1%, while the Nasdaq was little changed.
- Equal-weighted stocks outperformed the S&P 500 tracker by 0.86 percentage point.
U.S. equities reversed earlier losses and climbed by midday Tuesday, with the initial drop in technology stocks fading. The S&P 500 advanced 0.41% to 7,443.91 as of 11:55 EDT. The Dow was up around 1.1%, and the Nasdaq was little changed. Trading in cash equities continued.
All price changes occurred within the day and are initial.
The rebound did not signal a revival of previous AI-themed trades. Investors rotated toward firms showing real-time profits and strong pricing power. Consumer staples rose 3.5%, while semiconductor shares continued to drop sharply.
At 11:45 EDT, synchronized ETF prices highlighted the split:
| Market proxy | Price | Intraday move |
|---|---|---|
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $742.10 | up 0.41% |
| Invesco S&P 500 Equal Weight ETF NYSEARCA:RSP | $217.91 | rising 1.27% |
| SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) | $527.78 | gains 1.25% |
| Invesco QQQ Trust NASDAQ:QQQ | $678.31 | drops 0.56% |
| iShares Semiconductor ETF NASDAQ:SOXX | $496.12 | down 3.90% |
The equal-weight fund outperformed SPY by 0.86 percentage point. DIA surpassed QQQ by 1.81 points. These figures suggest increased participation within the S&P 500. However, they do not reflect widespread risk-taking across all segments.
The Dow’s price-weighted structure also magnified the impact of two strong earnings reports. Coca-Cola NYSE:KO rose $5.03, while Sherwin-Williams NYSE:SHW advanced $26.25. Given that each dollar move represents 5.94 Dow points, their combined gains contributed roughly 186 points, accounting for about one-third of the Dow’s 579-point advance as of 11:36.
Coca-Cola gained 6.0% after reporting a 6% rise in quarterly revenue to $13.37 billion. The beverage company updated its yearly outlook, projecting roughly 5% organic revenue growth and earnings growth of 9%-10%.
Sherwin-Williams rose 8.0% after reporting adjusted earnings of $3.70 per share, surpassing the $3.52 consensus estimate. Revenue climbed 7.5% to $6.79 billion, with management raising its guidance.
Boeing NYSE:BA gained 3.9% following a revenue report of $24.6 billion. Free cash flow swung to a positive $631 million. Chief Executive Kelly Ortberg stated operations were “more stable.” Major certification efforts stayed on schedule. Boeing Investors
The chip sector reflected a different trend.
Micron Technology NASDAQ:MU slipped 8.4%. Advanced Micro Devices NASDAQ:AMD declined 6.6%. Applied Materials NASDAQ:AMAT retreated 7.1%. Nvidia NASDAQ:NVDA rebounded for a 0.7% advance.
The Philadelphia semiconductor index dropped 4.35%. Over the past month, it has declined 22.4%, though it is still up 56% for the year.
The decline in shares highlights uncertainty about the scale and returns of AI spending. “These huge dollar amounts feel irresponsible at this point,” Robert Pavlik of Dakota Wealth said. Reuters
Macro data provided limited respite. The Conference Board’s confidence index decreased to 90.8 from July’s 92.2. Brent crude declined 4.2% to $82.24. The 10-year Treasury yield fell to 4.59%.
The Federal Reserve will announce its rate decision on Wednesday. Early market estimates placed the likelihood of a hike at about 36%-37%. Microsoft NASDAQ:MSFT and Meta Platforms NASDAQ:META are scheduled to release results later in the week. Reports from Amazon.com NASDAQ:AMZN and Apple NASDAQ:AAPL are also expected.
The danger is a rapid turnaround. An unexpected interest rate increase by the Fed would lift discount rates. If AI returns disappoint, it could intensify the chip sector’s decline.
Tuesday’s message for investors is more limited than the Dow’s jump suggests. Typical S&P shares are outperforming the megacap index. However, a handful of expensive Dow stocks account for most of the main increase.
This is a shift, not a surrender.
