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Philadelphia Semiconductor Index slides, then rebounds as Microsoft lifts U.S. stocks

Philadelphia Semiconductor Index slides, then rebounds as Microsoft lifts U.S. stocks

Chip shares recovered after a two-day rout as Microsoft’s results eased some AI-spending concerns, while Meta dropped on weak guidance and Treasury yields stayed elevated after the Fed held rates.

Fact Check
Both caller-supplied sources ('US Chip Stocks Slide...' from bloomingbit and the PANews article) report the exact figures in the claim: the Philadelphia Semiconductor Index down over 5% intraday, Nasdaq 100 down 10% from its record high, Micron ~-9%, and SanDisk and Western Digital each falling more than 12%. The Financial Times ('US tech stocks enter correction as AI sell-off deepens') independently corroborates the broader event—US tech stocks entering correction with the Nasdaq 100 losing more than 10% amid a semiconductor rout on July 28, 2026. The convergence of specific numeric details across sources supports the claim as likely true.
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Summary

The Philadelphia Semiconductor Index suffered a two-session selloff before chip shares rebounded on Thursday, when Microsoft’s stronger-than-expected results helped lift U.S. equities and eased some worries about near-term returns on heavy AI spending. The prior slide had been driven by an unusually split Federal Reserve rate hold at 3.50%-3.75%, rising Treasury yields, oil-price volatility tied to U.S.-Iran tensions and broad pressure on semiconductor and AI-linked stocks. On Thursday, the Nasdaq 100 gained 1.5%, while the S&P 500 and Dow rose more than 0.5%; Microsoft jumped nearly 12% after reporting 43% Azure growth and outlining capital expenditure that did not exceed expectations, while Meta fell about 10% on weaker guidance and continued investor concern over AI monetization. Longer-dated Treasury yields remained elevated, and investors were awaiting June PCE inflation data along with earnings from Apple and Amazon.

Terms & Concepts
  • Philadelphia Semiconductor Index: A benchmark index that tracks major U.S.-listed semiconductor companies.
  • PCE: The Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge.
  • capital expenditure: Company spending on long-term assets such as data centers and other infrastructure.