Nasdaq Surges 1.3% to 26,206.89 as Chip Stocks Rally Offsets US-Iran Tensions; Dow, S&P 500 Close Higher

Mumbai, July 10: US stock markets closed higher on Thursday, with the tech-heavy Nasdaq Composite leading the gains as a powerful rally in semiconductor stocks eclipsed escalating geopolitical tensions between the United States and Iran. The Nasdaq surged 336.24 points, or 1.30%, to settle at 26,206.89. The benchmark S&P 500 advanced 60.93 points, or 0.81%, to 7,543.64, while the Dow Jones Industrial Average added 139.02 points, or 0.27%, to close at 52,487.41. 

The rally was underpinned by renewed investor enthusiasm for artificial intelligence-related semiconductor stocks, with the Philadelphia Semiconductor Index surging over 3%. The iShares Semiconductor ETF (SOXX) climbed 3.5%, while the Roundhill Memory ETF (DRAM) finished up 3.7%.  

Gains came despite the US launching fresh airstrikes on 90 Iranian targets and Tehran retaliating with attacks on US-linked sites in Gulf countries, threatening to prolong the Middle East conflict. The Magnificent Seven ETF (MAGS) fell 0.6%, indicating a distinct pivot away from hyperscalers toward pure-play semiconductor names. 

Micron’s $250 Billion US Investment Plan Powers Chip Stock Surge 

The semiconductor sector’s advance was spearheaded by Micron Technology, which jumped 4.52% to $991.64 after announcing a landmark expansion of its US investment plans. The memory chip maker said it will invest more than $250 billion in the United States through 2035, increasing its prior commitment by $50 billion as demand for memory chips surges amid the AI boom. 

The expanded investment centres on a major semiconductor campus in New York, along with expansions in Idaho and Virginia, with projects expected to create over 90,000 jobs. Additionally, Micron plans to spend $3 billion to strengthen the US semiconductor supply chain, including $500 million to support GlobalWafers’ silicon wafer facility in Texas, alongside a 10-year supply agreement. The company has already secured $22 billion in memory chip supply across data centre, consumer and automotive markets. 

Lam Research and AMD Lead Broad-Based Chip Rally 

The chip rally extended across the sector, with Lam Research climbing 6.03%, while Advanced Micro Devices surged 5.67% and Intel gained 2.09%. Arm Holdings jumped 9.20%, Marvell Technology rose 4.99%, and Qualcomm advanced 2.44%. Sandisk popped 7.59% and Western Digital gained 5.04%, reflecting strong demand for memory and storage components. 

Applied Materials surged 9.58%, while Lumentum Holdings rallied 11.13% amid strength in optical communications stocks. The broad-based advance lifted the information technology sector by 1.65%, making it the best-performing sector among the S&P 500’s 11 industry groups. 

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Meta Platforms Gains 4.7% Despite AI Chip Production Plans 

Among mega-cap technology stocks, Meta Platforms rose 4.70% to lead the Magnificent Seven. The gain came despite reports that the company plans to begin manufacturing its in-house AI chip, “Iris,” from September as part of a broader push to expand computing capacity. Meta aims to reach 14 gigawatts of computing power next year, doubling its infrastructure as it accelerates AI development across its platforms. 

Tesla advanced 3.17%, Amazon gained 1.40%, and Apple rose 0.88%. Microsoft edged up 0.27%. However, Nvidia declined 0.66%, while Alphabet Class A shares fell 0.84%. The mixed performance among mega-cap stocks reflected selective investor positioning ahead of the earnings season, with semiconductor names drawing the bulk of inflows. 

Dow Jones Mixed as Goldman Sachs Surges but IBM and Salesforce Slump 

Within the Dow Jones, gains were driven by financial and technology names. Goldman Sachs surged 2.56% and American Express jumped 3.07%, while Cisco Systems climbed 3.94% as part of the broader tech rally. Caterpillar rose 1.39% and Home Depot added 0.75%. However, IBM fell 2.23%, Salesforce dropped 2.45%, and McDonald’s declined 0.63%, highlighting the mixed nature of the blue-chip index’s advance. Procter & Gamble fell 1.04%, and Chevron declined 1.09%, weighing on the defensive and energy segments. 

S&P 500 Sector Performance: Tech Leads as Staples and Energy Lag 

Within the broader S&P 500, technology and financials outperformed. Oracle gained 2.65%, Dell Technologies jumped 4.22%, and Sandisk surged 7.56%. JPMorgan rose 1.47%, Bank of America added 1.63%, and BlackRock climbed 2.96%. On the defensive side, consumer staples weighed heavily, with Procter & Gamble falling 1.04%, Philip Morris dropping 3.15%, and Costco declining 4.21%. Energy majors Exxon Mobil and Chevron declined 2.60% and 1.09%, respectively, despite geopolitical tensions, as oil prices retreated. 

Costco Shares Fall 4.21% Despite Strong June Sales 

Costco Wholesale dropped 4.21% to $912.97 as investors focused on valuation and slowing sales growth. The warehouse club reported June net sales of $29.24 billion, a 10.6% increase year-over-year, but comparable sales growth cooled to 8.8% from May’s 12.5%. US same-store sales rose 10.6%, while Canada and other international markets posted gains of 3.7% and 4.7%, respectively. 

The stock has fallen about 17% from its mid-May record high, reflecting heightened scrutiny of richly valued consumer stocks. The S&P 500 Consumer Staples Sector declined 1.4%, making it one of the worst-performing sectors alongside Communication Services and Energy. 

Also Read: US Stock market timings  

PepsiCo Falls 3.25% as High Gas Prices Hit Snack Demand 

PepsiCo declined 3.25% despite reporting second-quarter results that topped Wall Street estimates. The snack and beverage giant reported adjusted earnings of $2.20 per share on revenue of $24.18 billion, up 6% year-over-year. 

However, the company flagged that higher gas prices weighed more than expected on consumer spending, particularly hurting its North American snack business. Revenue in the segment fell 2% despite price cuts of up to 15% aimed at reviving demand. International segments posted double-digit sales growth, but weakness in North America raised concerns about consumer spending resilience. 

AstraZeneca Tumbles 5.70% as Heart Drug Trial Fails 

AstraZeneca shares plunged 5.70% to $178.49 after the pharmaceutical company announced that Wainua, a drug in development for a certain kind of heart disease, failed to meet its targets in a Phase 3 clinical trial. The company said adding the drug to the current treatment plan “did not provide a statistically significant benefit on the composite outcome of cardiovascular mortality and recurrent CV events”. 

The decline erased the stock’s year-to-date gains, highlighting the high-stakes nature of pharmaceutical development. Full trial results are expected to be shared in August. 

Top Gainers and Losers: nLIGHT Surges 27.32% While Ionis Plunges 23.90% 

Among the day’s top performers, nLIGHT surged 27.32% to $74.71 on strong volume, reflecting a broader rally in optical and laser technology stocks. BridgeBio Pharma jumped 15.12% and 10x Genomics gained 15.03%. Bitdeer Technologies rose 14.09% amid a recovery in crypto-related names, while Aehr Test Systems advanced 12.26%. 

On the losing side, Ionis Pharmaceuticals plunged 23.90% to $64.27 after reporting clinical trial setbacks. Granite Construction fell 12.50%, while MDA Space dropped 8.48%. Intellia Therapeutics declined 8.31%, and AstraZeneca featured prominently among the top losers. 

Also Read: Nasdaq Surges 2.07% to 25,820 as Dow Breaches 52,000 for First Time on US-Iran Ceasefire and AI Stock Rebound

SK Hynix Prepares Record $26.5 Billion Nasdaq Debut 

Investor attention on Thursday was also focused on SK Hynix’s upcoming Nasdaq debut, with the South Korean memory chip giant set to begin trading on Friday. The company is offering American Depositary Receipts at a guided price of $149 per ADR, about 3.1% above its Seoul closing price, with the deal potentially raising roughly $26.5 billion. 

The offering is reportedly at least seven times oversubscribed, drawing strong institutional demand. The listing could become the largest US IPO by a foreign company, surpassing Alibaba’s debut. SK Hynix plans to use the proceeds to scale up its AI infrastructure expansion efforts. 

Oil Prices Slide as Trump Signals Iran Open to Negotiation 

Crude oil futures declined on Thursday, providing additional support to equities, after President Donald Trump said Iran had called to make a deal. West Texas Intermediate crude fell 2.3% to $71.85 per barrel, while global benchmark Brent crude dropped 2.5% to $76.10. 

The pullback in oil prices came despite the US and Iran exchanging fresh military strikes. The US launched airstrikes on 90 Iranian targets, while Iran retaliated with missile and drone attacks toward US-linked sites in Gulf countries, most of which were intercepted.  

Mediators from Qatar and Pakistan are reportedly working to bring the two sides back to the negotiating table. Transits through the Strait of Hormuz fell back toward zero, though analysts noted that global markets have adapted to supply disruptions. 

Jobless Claims Fall to 215,000, Signaling Labour Market Stability 

On the macroeconomic front, initial jobless claims declined by 2,000 to 215,000 for the week ended July 4, indicating labour market stability despite slower job growth in June. Economists had expected claims of 218,000. Continuing claims rose by 8,000 to 1.814 million. 

Federal Reserve minutes released on Wednesday reinforced expectations for stable employment conditions, though policymakers flagged risks from geopolitical uncertainty. Under new Chair Kevin Warsh, the Fed kept interest rates unchanged at its June meeting at 3.5% to 3.75%, but minutes showed a few policymakers saw a case for raising borrowing costs. Traders are pricing in at least one 25-basis-point rate hike by the end of the year. 

Existing Home Sales Unexpectedly Decline as Affordability Bites 

Existing home sales unexpectedly declined in June, falling 2.4% month-on-month to a seasonally adjusted annual rate of 4.09 million, against expectations for a modest increase to 4.2 million. The median sales price climbed 1.8% year-on-year to a record $440,600, extending a three-year streak of annual gains. NAR chief economist Lawrence Yun attributed the monthly fluctuations to mortgage rate volatility, noting buyers likely locked in rates in April or May when 30-year mortgages climbed from around 6% to 6.5%. 

The average US 30-year mortgage rate currently stands at 6.49%, increasing borrowing costs and weighing on housing demand. Higher bond yields driven by inflation concerns and geopolitical tensions have kept rates elevated, sidelining potential buyers. 

Corporate Updates: MARA and Cerebras Surge on Expansion Plans 

MARA Holdings soared over 12% after acquiring more than 1,200 acres of land in Matagorda County, Texas, from HIF USA. The site is expected to more than double the company’s power capacity to about 4.8 gigawatts, advancing its strategy for high-performance compute and bitcoin workloads. Cerebras Systems jumped 7% after touting an expansion of European AI infrastructure, with its first European data centre capacity coming online by year-end. 

Paramount Skydance shares fell 6% amid reports that several US states are planning to file an anti-trust lawsuit over its acquisition of Warner Bros. Discovery. Salesforce was downgraded by KeyBanc to sector weight, with analysts citing difficulty finding evidence of future upside despite low valuation. Citi lowered Netflix’s price target to $100 from $115, citing tepid viewership and investor enthusiasm for semiconductors. 

AI Inflationary Impact Challenges Disinflationary Thesis 

Adding to the market narrative, Deutsche Bank economists noted that software and accessories inflation has soared by roughly 60% in 2026 following a steep decline in the latter half of 2025. This data challenges the prevailing thesis that AI will prove a significant disinflationary force, as surging demand for electricity and metal components pushes up prices across the economy. 

Apollo Global Management chief economist Torsten Sløk warned that a slower AI payoff could trigger a Magnificent Seven sell-off that would take the rest of the market with it, potentially tipping the economy into recession and the S&P 500 into a correction. 

30-Year Treasury Yield Tops 5% as Long-End Repricing Begins 

The 30-year US Treasury yield closed at 5.05%, down marginally but remaining above the 5% threshold. PGIM’s Gregory Peters said the recent move marks the start of a broader repricing of long-term rates, with 5.5% seen as an attractive level. The latest $22 billion Treasury auction cleared at the highest yield since 2007, signalling strong demand but also higher borrowing costs. 

Peters said rising debt issuance, including from AI-linked sectors and the US government, will continue to push long-end yields upward. PGIM has shifted to expecting interest-rate hikes this year, ahead of current market pricing. 

The rally in semiconductor stocks, led by Micron’s expanded investment plans, provided a powerful counterweight to geopolitical headwinds from US-Iran tensions. Stable jobless claims data reinforced labour market resilience, while declining oil prices eased inflation concerns. The upcoming SK Hynix Nasdaq debut and the start of the earnings season, with technology firms expected to drive profit growth, remain key focal points for market participants monitoring the sustainability of the AI-driven rally and the trajectory of Federal Reserve policy. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 
• https://www.dowjones.com/