US equity markets opened higher on Thursday, driven by a sharp rotation into semiconductor equities.
The rally was fueled by unexpectedly strong export data from Taiwan, where orders rose nearly 60% in June, signaling resilient demand for AI infrastructure components.
While hardware names posted significant gains, the software sector faced headwinds.
Morgan Stanley downgraded several software companies, citing valuation concerns and shifting capital allocation preferences.
This divergence highlights a growing split within the technology complex, with investors favoring tangible capex beneficiaries over pure-play software names.
The move in semiconductors extends the momentum seen in recent sessions, where technology names have led broader market gains.