S&P 500 Slips to 7,483.23 as Tech Rotation Persists Into July

The S&P 500 closed 0.22% lower on July 1 at 7,483.23 as weakness in chipmakers and AI-related names weighed on the index at the start of the second half. The decline follows a week of intense sector rotation that saw the cap-weighted benchmark fall nearly 2% while the equal-weight version rose 1.6%, its widest outperformance since June 2020. Mega-cap tech pressure peaked with Nvidia tumbling 8.6% and the Magnificent Seven down 6% on an equal-weight basis. A brief tech rebound on June 30 proved short-lived as defensives weakened and breadth remained narrow. Citigroup noted that 70% of such momentum drawdowns remain contained rotations rather than broad selloffs.