The Nasdaq 100 officially slipped into correction territory on Tuesday, falling more than 10% from its early June record high as the AI-driven sell-off deepened on mounting concerns over rising competition from China.

The memory sector has been at the heart of July's rout.

SanDisk Corp. SanDisk Corp. (SNDK) — the S&P 500's top performer of 2026 before the downturn — has plunged more than 50% from its peak, while Micron Technology Inc. Micron Technology Inc. (MU) has lost roughly one-third of its market value.

• Sherwin-Williams stock is charging ahead with explosive momentum. What's driving SHW stock higher?

Peers SK Hynix Inc. SK Hynix Inc. (SKHY), Seagate Technology Holdings plc Seagate Technology Holdings plc (STX) and Samsung Electronics Co. Ltd. Samsung Electronics Co. Ltd. (SSNLF) also sold off sharply Tuesday as investors reassessed the memory sector after China's memory champion, ChangXin Memory Technologies (CXMT), surged 466% in its Shanghai trading debut.

Across U.S. equity markets by midday Tuesday, the tape was sharply bifurcated, with earnings winners and rate-sensitive corners rallying against a bleeding AI-hardware complex.

The S&P 500 added 0.4% to 7,440, while a blitz of blue-chip earnings beats powered the Dow Jones more than 650 points higher, or 1.3%, to 52,865 points.

Sherwin-Williams Co. Sherwin-Williams Co. (SHW) led the Dow index, surging 8.3% after beating on earnings per share of $3.70 versus the $3.52 consensus and raising full-year adjusted EPS guidance to $11.80-$12.20.

Coca-Cola Co. Coca-Cola Co. (KO) gained 5.3%, reaching fresh record highs, after topping estimates at 97 cents per share and boosting its outlook on World Cup-fueled demand.

The Nasdaq 100 fell 0.6% to 27,882. Within Magnificent Seven stocks, Microsoft Corp. Microsoft Corp. (MSFT) rose 2.2%, Meta Platforms Inc. Meta Platforms Inc. (META) share price was volatile ahead of Wednesday's earnings, Alphabet Inc. Alphabet Inc. (GOOGL) climbed 1.9%, and Apple Inc. Apple Inc. (AAPL) was up 0.9% before Thursday's report.

West Texas Intermediate crude sank 5% to $78.50 a barrel and Brent slid 5.2% to $83.81, amid rising hopes for a ceasefire. The 10-year Treasury yield fell for a third straight session, down six basis points to 4.60%.

The Federal Reserve's two-day meeting kicked off Tuesday, with rate futures assigning roughly a 35% probability to a hike at Wednesday's decision under Chair Kevin Warsh and about 80% odds to a September move, after June inflation cooled to 3.5% from 4.2%.

Tuesday's Performance In Major U.S. Indices

According to market data:

• The Vanguard S&P 500 ETF Vanguard S&P 500 ETF (VOO) gained 0.3%.
• The SPDR Dow Jones Industrial Average ETF Trust SPDR Dow Jones Industrial Average ETF Trust (DIA) rallied 1.3%.
• The Invesco QQQ Trust Invesco QQQ Trust (QQQ) slid 0.6%.
• The iShares Russell 2000 ETF iShares Russell 2000 ETF (IWM) edged down 0.1%.

The AI Hardware Trade Unravels

The Consumer Staples Select Sector SPDR Fund Consumer Staples Select Sector SPDR Fund (XLP) led all sectors, up 2.2%, followed by the Materials Select Sector SPDR Fund Materials Select Sector SPDR Fund (XLB) at 2.2%, the Health Care Select Sector SPDR Fund Health Care Select Sector SPDR Fund (XLV) at 2.2% and the Communication Services Select Sector SPDR Fund Communication Services Select Sector SPDR Fund (XLC) at 2.0%.

The Energy Select Sector SPDR Fund Energy Select Sector SPDR Fund (XLE) was the worst performer, down 1.7% on crude's slide, just below the Technology Select Sector SPDR Fund Technology Select Sector SPDR Fund (XLK), off 1.6% and now down 10.0% in July.

Falling yields and hot home-price data lifted the iShares U.S. Home Construction ETF iShares U.S. Home Construction ETF (ITB) 2.8%, while cheaper fuel sent the U.S. Global Jets ETF U.S. Global Jets ETF (JETS) up 2.4% and the SPDR S&P Insurance ETF SPDR S&P Insurance ETF (KIE) added 2.5%.

On the losing side, the Invesco WilderHill Clean Energy ETF Invesco WilderHill Clean Energy ETF (PBW) dropped 3.6% – hit by a 12.5% slide in Bloom Energy Corp. Bloom Energy Corp. (BE) ahead of its report tonight.

The AI hardware complex was the session's bleeding edge.

Aside from Micron's 8.9% drop, Advanced Micro Devices Inc. Advanced Micro Devices Inc. (AMD) lost 6.7%, Intel Corp. Intel Corp. (INTC) fell 5.4%, and equipment makers Applied Materials Inc. Applied Materials Inc. (AMAT) and Lam Research Corp. Lam Research Corp. (LRCX) shed 7.9% and 8.2% ahead of Lam's Wednesday report.

Storage and optical names cratered in sympathy: Western Digital Corp. fell 9.3%, Coherent Corp. Coherent Corp. (COHR) dropped 12.0%, Lumentum Holdings Inc. Lumentum Holdings Inc. (LITE) lost 10.0% and Ciena Corp. Ciena Corp. (CIEN) slid 9.2%.

Dell Technologies Inc. Dell Technologies Inc. (DELL) gave up 10.3% and Super Micro Computer Inc. Super Micro Computer Inc. (SMCI) lost 4.9%, while the data-center build-out trade unwound through Vertiv Holdings Co Vertiv Holdings Co (VRT), down 6.7% before Wednesday's print, GE Vernova Inc. GE Vernova Inc. (GEV), off 4.6%, and Quanta Services Inc. Quanta Services Inc. (PWR), down 5.1% ahead of Thursday's results.

The other side of the rotation was just as violent: software and IT services ripped higher, with Workday Inc. Workday Inc. (WDAY) up 7.0%, Cognizant Technology Solutions Corp. Cognizant Technology Solutions Corp. (CTSH) up 7.5%, Accenture plc Accenture plc (ACN) up 7.0%, Autodesk Inc. Autodesk Inc. (ADSK) up 6.6%, Adobe Inc. Adobe Inc. (ADBE) up 6.1% and Salesforce Inc. Salesforce Inc. (CRM) up 4.9%.

Tuesday's Earnings Winners and Losers

Among earnings movers, Repligen Corp. Repligen Corp. (RGEN) topped the Russell 1000, soaring 15.6% after beating with adjusted EPS of 54 cents versus 45 cents expected on revenue up 12% to $204 million, raising full-year guidance and unveiling a roughly $1.5 billion cash-and-stock deal for BioLife.

IQVIA Holdings Inc. IQVIA Holdings Inc. (IQV) jumped 12.7% on a revenue beat of $4.37 billion, adjusted EPS of $3.15 and a full-year guidance hike backed by record clinical bookings.

TransUnion TransUnion (TRU) rallied 10.9% after adjusted EPS of $1.23 beat the $1.15 consensus on 15% revenue growth, with full-year guidance raised to $5.13 billion-$5.16 billion.

Armstrong World Industries Inc. Armstrong World Industries Inc. (AWI) added 10.8% after beating on EPS ($2.36 versus $2.25) and revenue while lifting its full-year sales outlook.

Boeing Co. Boeing Co. (BA) gained 4.9% following its quarterly report, with deliveries up 14% year over year, a $695 billion backlog and the FAA's July 23 restoration of its certification authority still fresh.

On the downside, Amkor Technology Inc. Amkor Technology Inc. (AMKR) collapsed 24.5% — the Russell 1000's worst — as a soft third-quarter revenue outlook of $2 billion-$2.1 billion overshadowed a record quarter in which EPS of 70 cents crushed the 47-cent consensus.

Sanmina Corp. Sanmina Corp. (SANM) plunged 18.9% despite beating fiscal third-quarter estimates with adjusted EPS of $3.31 versus $2.77, as the midpoint of its $3.3 billion-$3.6 billion revenue guide sat below the $3.5 billion consensus and the AI-hardware unwind amplified the damage.

Corning Inc. Corning Inc. (GLW) sank 15.7% even after core EPS of 78 cents beat by two cents on sales up 17% to $4.74 billion; a merely in-line third-quarter outlook triggered profit-taking in one of the year's hottest AI-optics names, despite CEO Wendell Weeks pointing to a coming phase of accelerating growth.

United Parcel Service Inc. United Parcel Service Inc. (UPS), meanwhile, slid 5.6% after its morning report failed to impress.

After the close, attention turns to Visa Inc. Visa Inc. (V), along with Ford Motor Co. Ford Motor Co. (F), Seagate Technology Holdings plc, KLA Corp. KLA Corp. (KLAC) and Teradyne Inc. Teradyne Inc. (TER).

Tuesday's Russell 1000 Top Gainers

Tuesday's Russell 1000 Top Losers