Nasdaq Composite Rises 0.2% to 25,870.65 as Dow Plunges 576 Points on Trump's Iran Deal Collapse 

Mumbai, July 9: The US stock market ended Wednesday’s session on a mixed note, with the technology-heavy Nasdaq Composite (^IXIC) bucking the broader downward trend to close at 25,870.65, up 51.96 points (+0.20%), even as escalating geopolitical tensions between the United States and Iran sent shockwaves through global financial markets.  

The Dow Jones Industrial Average (^DJI) tumbled 576.76 points (-1.09%) to settle at 52,348.39, while the S&P 500 (^GSPC) declined 21.14 points (-0.28%) to finish at 7,482.71, as investors grappled with President Donald Trump’s declaration that the US-Iran ceasefire was “over” and threats of further military strikes. 

Trump Declares US-Iran Truce ‘Over,’ Threatens Further Strikes on Iran 

Markets turned volatile after Donald Trump declared that the US-Iran memorandum signed last month was effectively over, signalling the possibility of further military action against Iran. Speaking at the NATO summit in Ankara, Trump said the US had carried out major strikes and warned that additional action could follow if tensions continued to escalate. 

Also Read: How to Invest in the US Stocks from India? 

The remarks came after the US launched strikes on more than 80 Iranian military targets in response to attacks on commercial vessels near the Strait of Hormuz. The escalation intensified concerns over a wider regional conflict and potential disruptions to global energy supplies. Mark Rutte supported the US response, stating the strikes were necessary following Iran’s alleged violation of the ceasefire. 

Broadcom, JD.com and Target Lead Gainers Across Major Indices; Intuit, ServiceNow and Sherwin-Williams Decline 

Technology and semiconductor stocks led gains across the major US indices. Broadcom and JD.com topped the Nasdaq with gains of 4.37% each, followed by Nvidia (+3.69%), NetEase (+3.10%), Texas Instruments (+2.62%), and Lam Research (+2.24%). In the S&P 500, Target rallied 4.30%, while Occidental Petroleum and CME Group also finished higher. Within the Dow Jones, Chevron led gainers with a 1.72% rise, followed by Walmart, Cisco Systems, Verizon, and Coca-Cola. 

On the downside, Intuit fell 3.14%, PayPal declined 2.96%, while Charter Communications, Alphabet, and Intel also closed lower on the Nasdaq. In the S&P 500, ServiceNow dropped 3.66%, followed by Sherwin-Williams, Estée Lauder, Home Depot, and Intuit. The Dow Jones was weighed down by Sherwin-Williams (-3.52%), Home Depot (-3.23%), Boeing (-2.35%), American Express (-2.33%), and Merck & Co. (-2.23%), reflecting weakness in industrial, consumer, and financial stocks. 

Energy Stocks Rally as Oil Majors Gain, While Consumer and Industrial Sectors Tumble 

Energy stocks stood out as the market’s strongest performers after crude oil prices surged on concerns over supply disruptions in the Middle East. Higher oil prices lifted producers and refiners, with Chevron gaining 1.11%, ConocoPhillips rising around 2%, and Marathon Petroleum advancing 5%. However, the strength in energy shares was not enough to offset widespread losses across the broader market. 

Consumer discretionary stocks remained under pressure as investors assessed the potential impact of rising fuel costs on household spending and corporate margins. Home Depot declined 2.61%, while McDonald’s slipped 1.40%, reflecting concerns that sustained inflation could weaken consumer demand. 

Industrial companies also posted notable declines. Boeing fell 2.90%, RTX Corporation lost 2.96%, and Honeywell International dropped 2.08% as investors rotated away from economically sensitive sectors. The materials sector was among the session’s weakest performers, falling nearly 3% during trading and heading for its sharpest decline since April 2025. Packaging giants Smurfit WestRock and Amcor fell more than 7% and 6%, respectively, amid the broader sell-off. 

Chip Stocks Rebound After Recent Selloff as Broadcom Surges on Apple Deal 

Semiconductor stocks rebounded after coming under pressure in the previous session, helping the Nasdaq Composite outperform the broader market. The VanEck Semiconductor ETF (SMH) rose nearly 2%, although it remains around 12% below its recent high, reflecting continued volatility in the sector. 

Broadcom Inc (AVGO) led the recovery, surging 4.82% after announcing a more than $30 billion chip supply agreement with Apple. The deal extends the companies’ partnership through 2031 and covers the supply of custom chips for multiple generations of Apple products. Broadcom also unveiled plans to invest $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado, a move expected to support domestic production of more than 15 billion chips. Apple (AAPL) shares gained 0.87% following the announcement. 

The rally extended across the broader semiconductor space. Applied Materials (AMAT) climbed 2.89%, Texas Instruments (TXN) advanced 2.73%, and Lam Research (LRCX) gained 2.15%. Nvidia (NVDA) also moved higher, rising 3.69% as investors continued to view the AI leader as one of the sector’s strongest long-term growth stories. Despite losing nearly $1 trillion in market value over the past two months, Nvidia now trades at roughly 18 times forward earnings, below the S&P 500’s forward multiple of 21, representing its most attractive valuation since early 2019. Meanwhile, Intel (INTC) slipped 0.19%, while Advanced Micro Devices (AMD) edged up 0.28%. 

Magnificent Seven Stocks Show Mixed Performance as Tesla Extends Losses 

Performance among the Magnificent Seven remained mixed, highlighting investors’ selective preference for AI and semiconductor-related names over the broader mega-cap technology sector. Nvidia and Apple were the only members of the group to finish the session in positive territory, supported by continued demand for AI-related stocks and optimism surrounding Broadcom’s agreement with Apple. 

Tesla (TSLA) extended its recent weakness, declining 2.23% after falling around 4% in the previous session. Meta Platforms (META) lost 1.99%, while Alphabet’s Class A (GOOGL) and Class C (GOOG) shares declined 1.39% and 1.33%, respectively. Amazon.com (AMZN) slipped 0.96%, Microsoft (MSFT) fell 1.47%, and Netflix (NFLX) retreated 0.74%. 

Despite weakness across most mega-cap technology names, continued strength in semiconductor stocks helped the Nasdaq finish in positive territory, underscoring investors’ preference for AI-linked companies even as broader market sentiment weakened. 

Airline and Cruise Stocks Sink as Oil Price Surge Threatens Profitability 

Airline and cruise operator stocks remained under pressure as surging crude oil prices heightened concerns over higher operating costs and softer consumer demand. Fuel remains one of the largest expenses for airlines, and investors moved quickly to price in the potential impact of sustained increases in energy prices. 

American Airlines Group (AAL) fell nearly 4%, while United Airlines Holdings (UAL) lost around 2.5%. Delta Air Lines (DAL), Southwest Airlines (LUV) and JetBlue Airways (JBLU) each declined about 2%. 

Cruise operators also weakened, with Carnival Corporation (CCL), Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) all falling more than 2%. Online travel companies were similarly affected, as Booking Holdings (BKNG) dropped 4.21% and Airbnb (ABNB) declined 3.93%, reflecting broader concerns that higher fuel costs and geopolitical uncertainty could weigh on travel demand and corporate profitability. 

 Moderna Slumps 7.48% as Momentum Fades Following June’s 48% Surge 

Moderna Inc (MRNA) was among the S&P 500’s worst-performing stocks, declining 7.48% to $74.63 after a strong rally that saw the stock surge 48% in June and reach its highest level since August 2024 earlier this week. The pullback was largely attributed to profit booking as investors rotated into technology stocks following recent market developments. Despite the recent gains, analysts remain cautious about the company’s near-term outlook.  

BofA Securities, which maintains an Underweight rating on the stock, said Moderna’s recent rally had pushed shares beyond their implied value ahead of upcoming clinical data readouts. The brokerage also expects a muted second quarter, in line with the company’s earlier revenue guidance, and highlighted risks surrounding data for Moderna’s personalised skin cancer vaccine. Morgan Stanley reiterated its Equal Weight rating and raised its price target to $39 from $33, but noted that the revised target still implies significant downside from the stock’s current trading levels. 

SpaceX Stock Closes Below IPO Price at $148 After Nasdaq 100 Inclusion 

SpaceX (SPCX) ended Wednesday’s session at $148, closing below its $150 IPO price for a second consecutive day despite joining the Nasdaq 100 earlier this week. The inclusion came less than a month after the aerospace and defence company made its market debut on 12 June, benefiting from revised Nasdaq rules that allow newly listed companies to qualify for index inclusion more quickly. 

The company’s record $85.7 billion initial public offering was boosted after underwriters exercised the overallotment option, with 555.6 million shares ultimately priced at $135 each. Following its debut, the stock rallied to a record closing high of $201.80 on 16 June before retreating as investors locked in profits. 

Despite the recent pullback, analysts remain constructive on the stock’s long-term prospects. Morgan Stanley initiated coverage with an Overweight rating and a $300 price target, while Bernstein, RBC, and UBS assigned bullish ratings with targets ranging from $210 to $239. Analysts continue to cite SpaceX’s leadership in reusable launch technology, the growth potential of its Starlink satellite internet business, and future opportunities in artificial intelligence and defence technologies as key long-term growth drivers. 

Small-Cap Stocks: Penguin Jumps 25% as Polibeli Slides 25% 

Small- and mid-cap stocks witnessed sharp volatility, with Penguin Solutions soaring 25.13%, while TeraWulf, Par Pacific Holdings, Kingsoft Cloud, Ultra Clean Holdings, and Alibaba gained between 9% and 13%. On the downside, Polibeli Group plunged 25.37%, followed by steep declines in Alignment Healthcare (-16.72%), Maase (-15.48%), IQM Quantum Computers (-11.02%), and Synchrony Financial (-9.61%), reflecting broad swings across the small-cap segment. 

Meta Announces $9 Billion Canadian Data Centre as AI Expansion Accelerates 

Meta Platforms announced plans to build its first Canadian data centre in Alberta, a 1-gigawatt facility worth around $9 billion. The project, expected to take two to three years to complete, will become Meta’s 33rd data centre globally and is part of the company’s aggressive expansion of its AI infrastructure. The development is expected to create more than 3,000 construction jobs at its peak while supporting local infrastructure and community initiatives. 

The announcement comes as Meta explores a cloud computing business that could commercialise excess AI computing capacity. However, investors remain cautious over the company’s projected capital expenditure of up to $145 billion this year and the lack of a clear AI monetisation strategy beyond advertising. Reflecting these concerns, Meta’s stock has declined around 9% year-to-date, underperforming the Nasdaq’s 11% gain over the same period. 

Oil Prices Climb Above $78 as Treasury Yields Rise and Fed Rate Hike Bets Increase 

Financial markets continued to reprice the economic implications of the Middle East conflict, with crude oil prices, Treasury yields and interest-rate expectations all moving higher during Wednesday’s session. 

Brent crude surged 5.43% to settle at $78.19 per barrel, briefly trading above the $80 mark during the session, while West Texas Intermediate (WTI) advanced 4.37% to $73.52 per barrel. The rally followed the US Treasury’s decision to revoke Iran’s oil export licence, reviving concerns over supply disruptions through the Strait of Hormuz, a shipping route that handles roughly 20% of global oil supplies. 

Higher energy prices quickly filtered through financial markets. The 10-year US Treasury yield climbed to 4.57%, while the 30-year Treasury yield rose to 5.07%, its highest level since late May, as investors priced in the possibility that persistent energy-driven inflation could keep monetary policy restrictive for longer. 

Expectations for further Federal Reserve tightening also strengthened. Data from the Chicago Mercantile Exchange showed the probability of a December rate hike rising to 85%, compared with around 80% the previous day, while expectations for an October increase also edged higher. Supporting the shift in market expectations, minutes from the Fed’s June meeting revealed that policymakers remain divided over the appropriate path for interest rates, with several members continuing to express concern about upside inflation risks despite improving labour market conditions. 

The mixed close highlights diverging sector responses to geopolitical shocks, with energy stocks benefiting from higher crude prices while consumer discretionary and industrial sectors face margin pressures. Surging Treasury yields and rising rate hike expectations suggest markets are pricing in a more hawkish Fed stance, with key levels to monitor including the 10-year yield’s trajectory above 4.45% and whether Brent crude sustains above $80 per barrel. The Fed’s June minutes indicate policy divergence, reinforcing the importance of upcoming economic data, particularly next week’s CPI report, for determining the rate path. 

 Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/