Investors Rotate Out of Chip Stocks
Plus, oil prices continue falling and Visa lays off staff.
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This is an edition of the Markets P.M. newsletter, a recap of the day’s most important markets moves, delivered after the closing bell. If you’re not subscribed, sign up here.
What Happened in Markets Today
Investors continued selling chip and memory stocks. The market has been spooked by concerns of tech giants’ ballooning spending and signs that China may be catching up in the AI arms race. Asian chip stocks plunged, sending South Korea’s Kospi index 10% lower and Japan’s Nikkei down 4%. The worst-hit American names included memory makers Sandisk, which fell another 14%, and Micron, which shed 8.9%. The PHLX semiconductor index declined 4.5%.
Software stocks recovered. The top gainers in the Nasdaq Composite included Workday and Thomson Reuters, which added 8.2% and 5.7%, respectively. These companies had sold off earlier in the year on fears that AI would disrupt their business. Gains in software names weren’t enough to lift the Nasdaq, however. The index lost 0.2%.
Strong earnings boosted the Dow. Shares of paint maker Sherwin-Williams and Coca-Cola, both Dow components, rose about 8% and 5%, respectively, on strong earnings. The Dow gained 1% or 537 points. The S&P 500 rose 0.2%.
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Markets P.M.
Catch up on the day's most important markets moves, delivered after the closing bell.
Oil fell for a third session. U.S. benchmark crude futures fell below $80 a barrel as the U.S. and Iran continued their pause in strikes. Iran and Oman have been working towards an agreement to reopen the Strait of Hormuz.
Visa said it would cut 7% of staff. The payments giant said it is shedding about 2,600 jobs, primarily in technology and product teams, to achieve better efficiency with AI. Other big companies such as Intuit, Cisco and Meta Platforms have all announced cuts in recent months, citing AI.
Markets at a Glance
7/28/2026, 9:29:33 PM
One Big Story
The bullish earnings narrative for Big Tech requires these companies to achieve newfound operating efficiency even as they spend trillions of dollars in capex over the next few years. Some of the numbers look too good to be true.
What’s Coming Up
- The Federal Reserve is set to meet Wednesday to set interest rates.
- Microsoft, Meta Platforms, Qualcomm and Starbucks are among companies that are due to report earnings on Wednesday after market close.
- The U.S. Energy Information Administration will release its weekly petroleum status report on Wednesday.
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About Us
Markets P.M. catches you up on the day’s most important markets moves, delivered after the closing bell. This email was written by Jinjoo Lee, writer for Heard on the Street, The Wall Street Journal’s home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here’s how to submit.
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