Semiconductor stocks are going up in smoke. But the S&P 500 is holding strong.

The article says semiconductor stocks are under heavy pressure, but the broader U.S. market, especially the S&P 500, remains resilient. About 72% of S&P 500 stocks are trading above their 200-day moving average, suggesting healthy breadth and a rotational market rather than a broad correction. Investors have been shifting away from AI chip names into software, financials, industrials, healthcare, and consumer discretionary stocks. Strength in earnings, resilient economic data, expectations for Fed rate cuts over the next year, and solid corporate profit growth are helping offset weakness in chipmakers. The sell-off in semiconductors is being interpreted more as a reassessment of AI infrastructure expectations than a signal of a weakening economy or earnings collapse.