The S&P 500 closed out July with a slight decline, its first negative July since 2014, as a selloff in semiconductor stocks overshadowed a blowout Microsoft earnings report. Chip-focused funds posted their worst month in nearly 24 years, while Apple's post-earnings slide dragged on the broader tech sector.
The S&P 500 ended July with a slight decline, marking the index's first down July since 2014. The index had also fallen 1.1% in June. A decline in semiconductor stocks highlighted a tough month for the stock market, capping a whipsaw stretch that included a blowout earnings report from Microsoft and a disappointing one from Apple.
Chip stocks post worst month since 2002
Semiconductor stocks led the declines. The iShares Semiconductor ETF tumbled 22.1% in July. That came even after a 9% surge in the final two days of the month. According to FactSet, that was the worst month for the fund since it fell 23.3% in December 2002. The ETF still finished up 67.7% for 2026.
Micron Technology capped the month's swings on its own: the stock climbed 18.4% on Thursday. It then fell 5.9% on Friday. Micron ended July down 28.7%.
Microsoft's earnings lift software, Apple's slide drags tech
The iShares Expanded Tech-Software Sector ETF gained 4.4% in July, lifted mainly by Microsoft. Microsoft's stock jumped 24.6% for the month after strong earnings. The stock still stays down 3.9% for 2026.
Apple's stock also weighed on the broader technology sector. The sector, tracked by the State Street Select Sector SPDR Fund, fell 8% in July. That decline deepened after a 7.4% selloff in Apple's stock on Friday.
Winners and losers across the index
Sandisk led the S&P 500's decliners, sinking 46.6% in July. The stock still remains the index's best 2026 performer with a 411.8% gain. Corning and KLA followed, down 45.9% and 39.4% for the month respectively.
On the other side, Cognizant Technology topped July's gainers, rising 42.9%. Accenture and PayPal Holdings followed close behind, up 33.3% and 32.5%.
Source: MarketWatch
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