Equal-Weight S&P 500 Outperforms Semiconductor Stocks by 1% This Week Amid Capital Rotation

According to Wall Street strategists, capital rotated away from semiconductor stocks this week, with equal-weighted S&P 500 outperforming chip stocks by more than 1 percentage point, marking one of the best relative performances in recent years. The Invesco S&P 500 Equal Weight ETF (RSP) posted its largest single-week outperformance versus the iShares Semiconductor ETF (SOXX) since May 2009. "If good earnings don't move stocks higher, it means nearly everyone is already positioned on the same side," said Stephanie Link, chief investment strategist at Hightower Advisors, as semiconductor players including Samsung, TSMC, and Micron published strong quarterly results without driving gains.

Despite July's volatility, the S&P 500 remains resilient. As of Friday, approximately 66% of index constituents trade above their 200-day moving average, maintaining an upward long-term trend and signaling broad market strength beneath surface turbulence.