Nasdaq-100 slides into correction as global chip and memory stocks sell off

Global semiconductor and memory stocks suffered a severe rout on Tuesday, July 28, 2026, dragging the Nasdaq-100 index firmly into correction territory. The milestone marked a drop of 10% or more from its most recent record high, driven by intensifying investor jitters over the capital expenditure required to fund artificial intelligence infrastructure and growing competitive pressures from abroad.

The violent sell-off began overnight across Asian bourses. South Korea's Kospi index plunged 10.84% after trading was temporarily halted, capping a rapid retreat from earlier highs. Analysts at Bespoke Investment Group observed that the Kospi's bear-market drop unfolded over just 25 trading sessions, following a historical rally that began in April 2025.

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Heavy losses hit key memory manufacturers SK Hynix and Samsung Electronics, which plummeted over 14% and 13% respectively. Storage producer Kioxia sank 18%. The shockwaves rapidly crossed into Wall Street premarket trading, deepening an aggressive multi-day retreat across semiconductor supply chains.

By the closing bell, the Philadelphia Semiconductor Index had plunged into bear market territory, registering a drop of 20% or more from its record high. Prominent U.S. Chip firms saw staggering losses. SanDisk Corp. Dropped over 14% on Tuesday. Advanced Micro Devices, ARM Holdings, Micron Technology, and Seagate Technology all suffered heavy drops. Dell Technologies tumbled 8.1%, and Intel shares slid 5.8%.

Equipment manufacturers felt the pressure too. ASML, Canon, and Nikon slumped sharply following industry reports that a Chinese state-backed firm had commenced mass production of domestic chipmaking tools, alongside reports that China was making progress in memory chips and immersion deep-ultraviolet lithography equipment.

The rout highlighted a stark divergence within the technology sector. While speculative infrastructure bets took a beating, Apple Inc. Climbed 1% to briefly surpass a $5 trillion market capitalization on Tuesday, July 28, 2026. The iPhone maker reclaimed the title of the world's most valuable publicly traded company from Nvidia, whose shares fell 5%. Financial analysts attributed Apple's resilience to its relative restraint regarding massive capital expenditures on AI data centers compared to rivals.

Freedom Capital Markets chief market strategist Jay Woods said via InvestmentNews that Apple had been able to avoid some of those capex pitfalls.

Broader U.S. Indices presented a bifurcated picture as capital rotated out of growth and into economically sensitive sectors. The S&P 500 managed a modest gain, while the Dow Jones Industrial Average rallied sharply, powered by earnings reports from stalwarts like Coca-Cola and Sherwin-Williams. Falling oil prices and easing Treasury yields provided broader macroeconomic relief, even as the Federal Reserve convened for its two-day policy meeting under Chair Kevin Warsh.

Market Snapshot: Key Asset and Index Movements

• Nasdaq-100: Slid into correction territory, down more than 10% from recent highs.
• Philadelphia Semiconductor Index: Entered bear market territory, down over 20%.
• Apple Inc.: Rose to briefly top $5 trillion in market value, reclaiming the world's most valuable company crown.
• SanDisk Corp.: Dropped 14% on Tuesday, extending a sharp pullback from its June peak.
• Dow Jones Industrial Average: Rallied sharply, driven by strong industrial and consumer earnings.

Markets remain on edge as investors await crucial financial disclosures. Major hyperscalers including Amazon, Meta Platforms, and Microsoft are scheduled to release earnings later in the week. Those reports are widely expected to determine whether corporate capital expenditures—projected by JPMorgan to approach $870 billion by year-end—are translating into tangible revenue growth or if the semiconductor correction will deepen further.