Opinion: Chip stocks have become the new driving force of the US stock market bull, and the S&P 500 is expected to break through 8,000 points.

BlockBeats news, July 7, The Kobeissi Letter stated that it currently believes the S&P 500 index is preparing to break above 8,000 points, as chip stocks have quietly become the new leadership sector of this bull market.

Although many of the "Magnificent Seven" stocks have fallen over 20% from their recent highs, semiconductor stocks have taken over market leadership. So far this year, 8 of the top 10 best-performing stocks in the S&P 500 have come from the chip industry.

Despite the weakening of large-cap tech stocks that have been leading the market since 2022, the S&P 500 is currently only about 1% below its all-time high. This is the first time since 2022 that the market has risen under the leadership of sectors other than the "Magnificent Seven," while the "Magnificent Seven" have moved in the opposite direction.

It believes that this rotation is positive because the "Magnificent Seven" are preparing to take over again. As large-cap tech stocks begin to regain leadership, and as semiconductors continue to outperform or even cool down, the S&P 500 is expected to rise above 8,000 points. Asset holders will continue to benefit.