Tech Sector Falls 4.8% in First Week of H2, Worst Performer

Technology stocks slid 4.8% over the first five trading days of the second half, making the sector July's worst performer so far. The drop came after a 28% gain in the first six months, the strongest showing among S&P 500 sectors.

Investors rotated out of tech winners into laggards, according to a midweek note from a Bloomberg Intelligence analyst. Energy, utilities, and financials each rose more than 1% during the same period. The S&P 500 slipped 0.3%, while the Dow Jones Industrial Average added 1.2%, the clearest sign of a rotation trade.

The selling concentrated in mega-cap names. Apple fell 3.1%, Microsoft lost 4.5%, and NVIDIA dropped 6.2%. The group had accounted for nearly half of the S&P 500's first-half return, leaving the index vulnerable to a pullback, several analysts said.

Earnings season begins next week. JPMorgan Chase reports Friday, and big tech companies follow in the weeks after. Their results will show whether the rotation is a tactical shift or a longer-term trend.