Viewpoint: Chip Stocks Have Become the New Driving Force of the US Stock Market, S&P 500 Poised to Break Through 8,000 Points

BlockBeats News, July 7th. The Kobeissi Letter stated in a post that it currently believes the S&P 500 Index is preparing to break above 8000 points, as semiconductor stocks have quietly become the new leading sector of this bull market.

Despite many of the "Big Seven" US stocks falling more than 20% from their recent highs, semiconductor stocks have taken over market leadership. Among the top 10 performing stocks in the S&P 500 Index this year, 8 are from the semiconductor industry.

Despite the weakness in large-cap tech stocks that have led the market since 2022, the S&P 500 is currently only about 1% below its all-time high. This is the first time since 2022 that the market has seen a rise led by sectors outside of the "Big Seven" US stocks, with the opposite trend seen in the "Big Seven" stocks.

It believes that this rotation is positive, as the "Big Seven" US stocks are preparing to take the lead again. With the major tech stocks starting to regain their leadership position and semiconductors continuing to outperform or even cooling off, the S&P 500 is expected to rise above 8000 points. Asset holders will continue to benefit.