US500 – Tech Is Falling Hard, But the S&P 500 Is Holding Up Better

US technology stocks had a rough week. The Nasdaq fell about 4.6% — its worst week of the year — after a report that OpenAI may delay its IPO to 2027. That raised fresh doubts about how much capital is actually flowing into AI. NVIDIA posted its worst week in over a year.

Yet the S&P 500 fell only about 2% and now trades near 7,384, while the Dow actually rose. Why the difference？ Because investors are not selling everything. They are rotating money out of expensive AI names and into other areas of the market — banks, industrials, and healthcare. Traders call this sector rotation.

This distinction matters because it changes how to read the drop. A market that falls everywhere is a worried market. A market where money simply shifts from one group to another is changing its leaders, not collapsing. For now, the S&P 500 is showing the second kind of move.

The risk is clear: tech carries enough weight that a continued slide can still drag the whole index lower. So the question this week is straightforward — does the rest of the market keep stepping up while tech cools off？

S&P 500 key levels:

• Resistance: 7,420, then 7,475.

• Support: 7,320, then 7,270.

Watching: big AI and chip stocks, whether other sectors keep rising, and US jobs data next week.

By Born2trade market research department

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