Tech splits again — software surges, chips slump

Today's Market

The S&P 500 closed roughly flat (-0.1%) on the 26th (local time), but inside tech, software and semiconductors split head-on

• Trump's threat of 100% tariffs on countries with digital taxes was read as shielding US SaaS, sending cloud software soaring (ServiceNow +9.8%, Snowflake +9.7%, Workday +9.2%, Datadog +8.5%)

• Semiconductors went the other way (Qualcomm -7.6%, Micron -6.7%, chip sector -5.6%), dragging the tech sector -1.9%

• Healthcare led sectors at +3.0% (Moderna +12.6%, Eli Lilly +7.1%); advancers still led (59%) despite the flat index

• Oil -2.3% ($70.2), VIX 18.4 (-2.5%) calm, Fear & Greed stuck at 25 ("Extreme Fear")

Market Data

S&P 500

7,354.02

▼0.05%

NASDAQ

25,297.62

▼0.24%

DOW

51,876.11

▼0.09%

VIX

18.41

▼2.54%

Sector Heat Map

SPY benchmark + 11 GICS sectors · 1-day

S&P 500 SPY −0.72%	Technology XLK −1.87%	Comm. Svcs XLC +0.57%	Cons. Discr. XLY +0.90%
Cons. Staples XLP +0.92%	Energy XLE −0.46%	Financials XLF +0.22%	Health Care XLV +3.03%
Industrials XLI −1.59%	Materials XLB −0.46%	Real Estate XLRE +1.46%	Utilities XLU +0.76%

In Focus

Trump's "digital-tax tariff" re-rates US software

Trump's threat of 100% tariffs on countries with digital taxes recast US SaaS — long exposed to foreign digital taxes — as protected beneficiaries

• ServiceNow +9.8%, Snowflake +9.7%, Workday +9.2%, Datadog +8.5% surged together

• Read as policy momentum lowering the discount rate on valuation-sensitive names — but it leans on a policy statement, so a reversal is a live risk

• Watch: the real scope of country-by-country digital taxes/tariffs and company guidance

Chips go the other way — a split day within tech

Inside the same tech sector, software surged while semiconductors slumped — exact opposites

• Qualcomm -7.6%, Micron -6.7%, HPE -6.4%, chip sector -5.6% led tech's downside

• A sharp contrast with the software and healthcare (+3.0%) strength — a dispersion-heavy tape

• Watch: visibility on chip demand and tariff impact

This Week

ALL TIMES EASTERN (ET)

• Tue 6/30 JOLTs (Job Openings)

• Wed 7/1 ADP Employment

• Thu 7/2 Employment Situation (NFP)

For informational purposes only. Not investment advice. All investment decisions are your own responsibility.

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