S&P 500 Could Reach 8000 as Chip Stocks Lead Rotating Market

According to a market commentary, the S&P 500 is now setting up for a move to 8,000 or higher. The note highlights a shift in market leadership: while many of the Magnificent Seven stocks have fallen more than 20% from their recent highs, semiconductor names have quietly become the new leaders of the bull market.

Eight of the ten best-performing S&P 500 stocks this year are in the chip industry, the source claims. As a result, the index sits only about 1% below a record high, despite weakness in the big tech stocks that have led since 2022. This marks the first time since 2022 that the market has traded with leadership outside the Magnificent Seven while those stocks moved in the opposite direction.

The rotation is viewed as constructive, with the expectation that large-cap tech will eventually "sub back in" while semiconductors continue to outperform or cool off. The combined effect, in this view, could push the S&P 500 to 8,000+.