NEW YORK – The S&P 500 ended higher on July 28 as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week.
Global markets have been volatile this month as investors worry that Alphabet, Microsoft, Amazon and other technology heavyweights may be overspending on AI data centers as they race to dominate the emerging technology.
Microsoft rose 1.1 per cent ahead of its report on Wednesday, while Amazon dipped 0.2 per cent ahead of its results on Thursday. Apple climbed almost 1 per cent to US$340.08 (S$439). It hit a session high of US$342.89 (S$443), briefly lifting its stock market value to US$5 trillion (S$6.4 trillion) for the first time. The iPhone maker reports its results on Thursday.
Chipmakers that have benefited from heavy AI spending added to recent losses, with the PHLX index losing 4.5 per cent. It has fallen about 25 per cent from its record-high close on June 22, and it remains up 56 per cent in 2026.
The S&P 500 healthcare index jumped 2.4 per cent, the consumer staples index added 2 per cent and the materials index rose 1.7 per cent, while declining chipmakers kept the tech index down 1.4 per cent.
“What has been behind the move into these non-tech names? Part of it is value,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “GDP is solid, the labor market continues to churn along and, in a lot of places, there’s evidence that consumer spending is reaccelerating.” Coca-Cola rallied 5 per cent after the beverage company raised its annual revenue and profit forecasts. Boeing jumped 4.8 per cent after the airplane maker generated positive free cash flow as its turnaround plans gained momentum.
The S&P 500 climbed 0.21 per cent to end the session at 7,428.78 points.
The Nasdaq declined 0.22 per cent to 24,876.91 points, while the Dow Jones Industrial Average rose 1.03 per cent to 52,747.32 points.
Fed decision in focus
The Federal Reserve is due to announce its interest-rate decision on Wednesday. Traders see a 71 per cent probability that the central bank will leave rates unchanged and a 29 per cent chance of a 25-basis-point rate hike, according to CME’s FedWatch tool.
Higher rates could further pressure AI companies that are becoming more dependent on debt financing. Corning tumbled 12 per cent after third-quarter sales forecasts missed estimates, while contract research firm IQVIA Holdings jumped 14 per cent after lifting its annual profit forecast. Oil prices offered some broader relief, with Brent falling 4.8 per cent to settle at US$84.09 (S$109) a barrel on expectations that tensions in the Middle East and in Ukraine would ease as the White House hosted Israel’s Benjamin Netanyahu and Ukraine’s Volodymyr Zelenskiy.
Analysts on average expect S&P 500 aggregate second-quarter earnings to jump 39 per cent from a year ago, with AI-related stocks accounting for much of that growth, according to LSEG I/B/E/S.
Advancing issues outnumbered falling ones within the S&P 500 by a 2.5-to-one ratio.
The S&P 500 posted 63 new highs and one new low; the Nasdaq recorded 167 new highs and 207 new lows.
Volume on US exchanges was in line with recent sessions, with 17.2 billion shares traded, compared to an average of 17.4 billion shares over the previous 20 days. REUTERS
Source : https://www.straitstimes.com/business/sp-500-ends-higher-as-investors-await-tech-earnings
