** S&P 500 .SPX breaks two-week winning streak, falls 1.6% as rout in semiconductors eclipses solid bank earnings, cool inflation data .N

** Dow .DJI loses 0.9%, while tech-heavy Nasdaq Composite .IXIC sheds 2.9%

** Healthy rally or calm before the storm? Record-low correlations have traders watching

** And with the SPX treading water near records, traders await its next wave

** But under the hood, the Nasdaq is sputtering

** U.S. 10-Year Treasury yield US10YT=RR churns near 4.55%. Will it be a breakout or a fakeout?

** A majority of sectors are overcome: Technology and Communication Services gasp, while safe havens and Energy breathe easy

** Tech .SPLRCT crumbles 3.8%. IBM IBM.N suffers worst day since the 1987 crash after Q2 forecasts below analyst estimates, stock plunges 26% on week

Semiconductor index .SOX tumbles 10%, its steepest weekly drop since early Apr 2025, as AI rally fizzles out

Apple AAPL.O briefly dethrones Nvidia NVDA.O as world's most valuable company after chipmaker's shares slide

** Communication Services .SPLRCL drops 2.4%. Netflix NFLX.O dives as weaker Q3 forecast fuels growth concerns

** Financials .SPSY up 1%. PayPal PYPL.O jumps after report of over $53 bln buyout offer from Stripe, private equity firm Advent

JPMorgan JPM.N rises after record quarterly profit on surging dealmaking, stock trading, Bank of America BAC.N gains after Q2 profit beat on trading boost

Citigroup C.N slips as earnings beat overshadowed by worries over expenses, Wells Fargo WFC.N falls after unchanged forecast, slight NIM compression

Goldman Sachs GS.N vaults after earnings topper as market volatility boosts equities revenue to a record, and Morgan Stanley MS.N climbs after Q2 beat as IPOs fuel wealth management assets, investment banking

For the week, S&P 500 banks index .SPXBK lifts 0.5%, KBW regional banking index .KRX advances ~2%

** Energy .SPNY surges 5%. Group tracks rising oil prices as military escalation disrupts Hormuz shipments, and rises on renewed US-Iran hostilities, threat of Red Sea closure O/R

** Meanwhile, individual investors turn more optimistic — but not more aggressive. SpaceX SPCX.O descends below IPO price for first time since the rockets-to-AI firm's blockbuster debut over a month ago

** SPX performance YTD:

Energy	28.2%
Industrials	15.7%
Tech	15.0%
Real Estate	13.4%
Materials	9.7%
Staples	9.1%
SPX	8.9%
Utils	5.7%
Healthcare	4.0%
Financials	2.7%
Comm Svcs	2.1%
Discretionary	-2.0%