Investors are pivoting from mainstream tech giants to AI infrastructure opportunities as of July 20, 2026. This trend impacts major funds including the SPDR S&P 500 ETF Trust (SPY). Recent analyses suggest the ETF is currently overvalued, with one report indicating the market price sits 11% above its calculated intrinsic value.
This shift follows a market downturn at the end of the previous week. A sell-off in AI-related chip stocks led to broader losses, causing the S&P 500 to fall 1%. Pre-market activity on July 20 showed SPY futures trading slightly higher, though broader S&P 500 futures pointed lower as investors weighed cooling inflation against mixed growth data.
Market analysts are now flagging warning signs for the S&P 500. Some indicators suggest risks not seen since the dot-com bubble.