Market mixed on tech and chips

What happened: Key events driving this narrative include mixed performance of U.S. stock indexes, with the tech-heavy Nasdaq 100 Index (QQQ) and S&P 500 Index (SPY) showing volatility. Chipmakers, such as Intel (INTC) and AMD (AMD), experienced significant declines, with Intel dropping 6% and AMD 5%. Meanwhile, Micron (MU) fell 11%, wiping out $138 billion in market cap. This pullback occurred despite HSBC's optimistic price target of $200 for Intel, implying 60% upside.

Market impact: The chip sector faced a broad sell-off, impacting tech stocks and the broader market. The Nasdaq 100, which has a significant weighting in tech, was down -1.43% to -0.97% in the bearish articles. This retreat was driven by profit-taking and concerns about overvaluation, despite strong performances in the previous quarter. The rotation out of AI and tech stocks into broader market sectors was also observed.

What to watch next: Upcoming catalysts include Intel's earnings report on July 27, which could provide insights into the company's turnaround efforts and its foundry business. Additionally, investors will be watching the broader tech sector's performance as the market continues to rotate. The release of the June jobs report on July 8 may also influence market sentiment, particularly for tech stocks.