Saying goodbye to “chip dominance,” the stock market rotation in the second half of the year may accelerate

Deep Tide TechFlow report: On July 17, many analysts expect that this year’s second-half stock market uptrend will continue to spread outward from mega-cap technology stocks. In just the past few weeks, the market’s direction has become increasingly clear: investors are shifting their focus to areas beyond ultra-large companies and chipmakers.

In this round of sector rotation, one area that benefits is railroad, airline, and trucking transportation companies, which move the goods and supplies that support economic operations. The Dow Transports Average, which tracks 20 large transportation companies, rose 3.2% on Thursday, and its gain for July to date is 5%. This sector has long been regarded as a barometer of the health of the economy, and recently it has also posted the best annual start since 1991. Healthcare is another sector recording gains. The S&P 500 Healthcare Index rose 6.2% over the past month, the top performer among the 11 industry groups within the S&P 500. (Jin10)