US stocks experience sector rotation as funds move from chip stocks to SaaS stocks, with Adobe and SAP rising over 5%

Golden Finance July 28｜While the market was selling off chip stocks, funds rotated into SaaS concept stocks that had previously seen significant corrections. Workday rose over 7%, Autodesk, Adobe, SAP, and Intuit all gained over 5%, Salesforce, The Trade Desk, DocuSign, and ServiceNow all rose over 4%, Shopify increased by more than 3%, and Microsoft was up nearly 2%.

On the news side, a Morgan Stanley research report pointed out that the market's recent pessimism toward the software industry has been overdone. The bank maintains an attractive rating on the software sector and specifically named Microsoft, Palo Alto Networks, CrowdStrike, Cloudflare, Datadog, ServiceNow, Snowflake, and Shopify as the most highly confident overweight positions in the AI era.