Nasdaq Opens Above 26,100, Dow Breaches 53,000 as AI Chip Stocks Rebound From Rout; Oil Prices Extend Decline

Mumbai, July 6: US stock markets opened the new trading week on a strong note, with the tech-heavy Nasdaq Composite climbing 0.92% to 26,069.72, while the Dow Jones Industrial Average surged past the 53,000 mark for the first time in history, touching an intraday high of 53,052.70. The S&P 500 advanced 0.42% to 7,514.67, as semiconductor stocks staged a robust recovery from Thursday’s sharp sell-off, driven by renewed investor confidence in artificial intelligence-linked companies.

The trading session, which followed Friday’s US Independence Day holiday, witnessed significant sector rotation as money flowed back into technology shares, particularly chipmakers that had experienced a brutal two-day rout late last week. President Donald Trump rang the opening bell for both the NYSE and Nasdaq from the Oval Office to commemorate the launch of “Trump Accounts,” tax-advantaged investment accounts for children under 18 with government-seeded funding.

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

The ceremony marked the first occasion of a jointly rung opening bell from the White House Oval Office. Trump Accounts, described by NYSE as “giving American families a new way to grow their children’s stake in the nation’s economic future,” provide $1,000 in government-funded seed money for babies born between 2025 and 2028.

Dow Jones Industrial Average Opens at Record High of 53,018.32 as 25 of 30 Components Advance

The Dow Jones Industrial Average (^DJI) opened 0.22% higher at 53,018.32 and touched an all-time intraday peak of 53,052.70 before marginally paring gains to trade at 52,751.27, down 148.80 points or 0.28% from the previous close of 52,900.07. The benchmark’s record-setting opening was supported by strong performances from industrial and financial stocks, with Caterpillar (CAT) rising 2.47%, Goldman Sachs (GS) advancing 2.31%, and IBM (IBM) climbing 2.14%. However, healthcare and consumer defensive stocks weighed on the index, with Amgen (AMGN) declining 3.51%, Procter & Gamble (PG) falling 2.41%, and Merck (MRK) dropping 2.48%.

The index’s 52-week range now stands at 43,340.68 to 53,052.70, with opening volume of 65,682,734 shares and an average daily volume of approximately 541 million shares. The Dow’s previous close stood at 52,900.07, with the index gaining nearly 2% last week.

Nasdaq Composite Gains 0.92% to 26,069.72 as AI-Linked Stocks Recover From Thursday Rout

The Nasdaq Composite (^IXIC) opened at 25,999.61 and quickly climbed to 26,099.57 before settling at 26,069.72, recording a gain of 237.05 points or 0.92% as of 10:03 AM EDT. The index’s day’s range was 25,963.44 to 26,099.57, with the 52-week range between 20,323.02 and 27,190.21. Opening volume stood at 1.64 billion shares, significantly below the average volume of 10.02 billion shares, reflecting cautious participation following the long holiday weekend.

Advanced Micro Devices (AMD) surged 8.41% to lead the chipmaker recovery, while Western Digital (WDC) jumped 9.00% and Seagate Technology (STX) advanced 6.02%. CrowdStrike (CRWD) gained 6.38%, and Qualcomm (QCOM) rose 5.86%, as investors rotated back into semiconductor names following Thursday’s sharp declines. The iShares Semiconductor ETF (SOXX) was up 3.5% in early trading after a 6% decline in the previous session.

However, some mega-cap tech names showed weakness, with Microsoft (MSFT) declining 1.33%, Netflix (NFLX) falling 2.02%, and Adobe (ADBE) dropping 1.44%. The Nasdaq 100 heatmap displayed a mixed picture, with technology and communication services sectors showing divergent performance.

S&P 500 Opens 0.42% Higher at 7,514.67 as Seven of 11 Sectors Trade in Green

The S&P 500 (^GSPC) opened at 7,506.96 and climbed to an intraday high of 7,522.42 before settling at 7,514.67, adding 31.43 points or 0.42% as of 10:03 AM EDT. The benchmark’s day’s range was 7,500.97 to 7,522.42, with the 52-week range spanning 6,201.00 to 7,620.90. Opening volume stood at 372.2 million shares, well below the average volume of 5.59 billion shares.

Seven of the 11 S&P 500 sectors traded in positive territory, led by communication services and financials, while information technology and utilities lagged. The VanEck Semiconductor ETF (SMH) shed 3.2% last week, marking its second consecutive weekly decline, but showed signs of recovery in Monday’s opening session.

Tech stocks rose broadly, with the State Street Technology Select Sector SPDR ETF (XLK) climbing more than 1% in early trading. Western Digital led gains with an 8% climb, while Teradyne (TER) jumped 6% and Marvell Technology (MRVL) gained more than 3%. Oracle (ORCL) advanced over 2%, contributing to the benchmark’s positive opening.

AI Chip Stocks Stage Comeback: AMD Jumps 8.41%, Western Digital Surges 9% as Investors Return to Semiconductors

Chipmakers led the market’s recovery, with the Philadelphia Semiconductor Index showing strong gains after Thursday’s near 12% decline over two sessions. Advanced Micro Devices (AMD) surged 8.41% to $546, while Western Digital (WDC) climbed 9.00% and Seagate Technology (STX) advanced 6.02%. Micron Technology (MU) rose 2.20% to $1,007.80 after earlier touching a high of $1,007.80, though it pared some gains from its opening peak.

Broadcom (AVGO) gained 5.50%, Arm Holdings (ARM) advanced 5.22%, and KLA Corporation (KLAC) rose 3.49%. The recovery came after a tumultuous week for AI-linked giants, with shares of MU, AMD, Sandisk, and others under pressure as investors booked profits following a record-breaking rally.

The Roundhill Memory ETF (DRAM) was up 7% following a 9% decline in the previous session, indicating strong buying interest in memory chip stocks. The recovery in semiconductor names was supported by Hon Hai’s (Foxconn) better-than-expected quarterly sales, reported on Sunday, which signalled sustained AI demand.

Oil Prices Extend Decline Below $72 as OPEC+ Agrees to 188,000 bpd Output Increase

Brent crude futures fell 1.4% to $71.10 per barrel, while West Texas Intermediate (WTI) crude slipped 1.2% to $67.89 per barrel, as OPEC+ members agreed to another modest production increase for next month. Seven nations led by Saudi Arabia and Russia agreed to raise output by 188,000 barrels per day, rolling back curbs made a few years ago.

The move came as traffic through the Strait of Hormuz picked up further over the weekend, following the peace accord between the US and Iran. According to a Bloomberg survey, OPEC’s crude oil production surged last month as Persian Gulf producers restored exports through the strategic waterway.

Oil and gas shipping along a US-protected corridor showed signs of recovering Sunday, after a batch of vessels had performed unexplained U-turns and detours in the vital energy corridor. The easing of supply concerns supported risk sentiment in equity markets, with lower energy prices expected to reduce inflationary pressures.

SpaceX to Join Nasdaq-100 on Tuesday as Stock Rebounds 5.72% in Premarket Trading

SpaceX (SPCX) shares rose 5.72% in premarket trading, as the newly public space, connectivity, and AI firm is set to join the Nasdaq-100 index ahead of the opening bell Tuesday. The stock, which finished last week at $162, has been volatile in its first weeks of trading, down more than 20% from the highs reached in its first days on the market.

Current options pricing suggests traders anticipate SpaceX stock to swing up to 8% in either direction by the end of the week, with a move of that size potentially pushing the stock as high as $175 or seeing it fall as low as $148. Banks have started to launch coverage of the company, with analysts from Wedbush assigning the stock an “outperform” rating and a $190 price target.

The addition to the Nasdaq-100 is generally seen as positive for stocks, since funds that track the index have to buy shares. Several money managers have recently created or plan to launch their own Nasdaq 100-tracking funds, piggybacking on the popular “QQQ.”

Samsung Electronics Expected to Report 18-Fold Profit Jump on Tuesday Amid AI Memory Demand

Samsung Electronics, the world’s largest memory chipmaker, is projected to report preliminary operating profit of 84.3 trillion won ($55.1 billion) for the quarter ended June, according to an average of analysts’ estimates compiled by Bloomberg. This would mark an 18-fold jump from a year ago and dwarf the company’s profit for all of 2025.

The results, scheduled for Tuesday, are expected to provide further insight into demand for artificial intelligence-related memory chips. Revenue is forecast to surge 127% to a record 169 trillion won, driven by booming demand for AI memory chips, although hefty bonus payouts could weigh on overall earnings.

The earnings report will be followed later this week by SK Hynix Inc’s $29 billion US listing on the Nasdaq, with the company scheduled to sell 17.79 million new shares in the depository receipt listing. The final price of the New York listing is due to be set on Thursday, ahead of the stock starting trade on Friday.

TeraWulf Shares Jump 16% on 20-Year Anthropic Data Centre Deal Worth $19 Billion Revenue

TeraWulf (WULF) shares jumped more than 16% in premarket trading, after Anthropic signed a 20-year deal to use its Kentucky data centre. The data centre can support about 400 megawatts with its first power delivery expected in the second half of 2027, located roughly an hour southwest of Louisville.

The deal is expected to generate over $19 billion in revenue over the initial term, marking a significant milestone for the sustainable bitcoin mining company focused on using zero-carbon energy sources. TeraWulf shares traded at $23.73 as of 10:06 AM EDT, up 12.04% on the day.

The agreement underscores the growing demand for data centre capacity to support artificial intelligence and cloud computing infrastructure, as technology companies continue to expand their computing capabilities.

Comcast, ASML, Applied Materials Among Stocks Making Premarket Moves on Analyst Upgrades

Comcast shares rose 0.5% after the company’s UK-based Sky announced it will buy rival ITV’s television business. While Comcast owns Sky for now, the company recently announced plans to spin off its media assets.

ASML Holding (ASML) was up 4% after Bernstein hiked its price target on the stock by more than 30% to $2,300, citing unprecedented expansion in both logic and DRAM capacity driven by artificial intelligence.

Lam Research (LRCX), Applied Materials (AMAT), and KLA Corporation (KLAC) were among the best performers on the S&P 500 premarket after Morgan Stanley analysts hiked their price targets on each of the stocks. Lam Research was at the top of the S&P, up more than 4%, while Applied Materials and KLA each jumped just under 4%.

Intel (INTC) rose 4.14%, and Nvidia (NVDA) gained 0.81%, as the broader semiconductor recovery lifted the entire sector. Teradyne (TER) advanced 6%, while Marvell Technology (MRVL) gained 4.00% in early trading.

10-Year Treasury Yield Rises to 4.48% as Markets Digest Weak Jobs Data and Fed Rate Expectations

The 10-year Treasury yield rose to 4.48%, up from Thursday’s close, while the 30-year Treasury yield (^TYX) stood at 4.9860%. The US dollar index, which tracks the value of the greenback against a basket of foreign currencies, was up 0.2% at 101.05.

June nonfarm payrolls came in at just 57,000 new jobs added, well below the Zacks Consensus Estimate of 117,000, with downward revisions to the prior two months. The weak hiring data could allow the Federal Reserve and its new chairman Kevin Warsh to “wait through the summer to get more clues,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Traders now see an 82% chance that the Federal Reserve will not raise the federal funds rate at its next meeting later this month, up from 71% a day earlier. The reassessment of rate expectations followed last Thursday’s weaker-than-expected nonfarm payrolls data, along with comments from Federal Reserve Chair Kevin Warsh that inflationary risks had eased.

Key Events This Week: FOMC Minutes, Samsung Earnings, SK Hynix IPO, and Delta Air Lines Results

The Federal Reserve’s meeting minutes, due Wednesday, will be closely watched by investors for fresh clues on policymakers’ thinking regarding interest rates and economic conditions. The minutes are likely to predate the recent increase in oil flows through the Strait of Hormuz, which has eased concerns over energy-driven inflation.

Samsung Electronics earnings on Tuesday will provide critical insight into the AI-driven semiconductor cycle, with the world’s largest memory chipmaker expected to report record profits. The results will be followed by SK Hynix’s $29 billion US listing on Nasdaq on Friday, one of the world’s largest new share sales.

Q2 earnings season begins this week, with consumer names such as PepsiCo, Levi’s, and Delta Air Lines scheduled to report. Delta’s earnings on Friday will be particularly watched for insights into consumer travel demand and the health of the US consumer.

The opening session reveals a market navigating sector rotation as AI chip stocks recover from Thursday’s rout. Investors should monitor Samsung Electronics earnings on Tuesday for confirmation of sustained AI memory demand. The Federal Reserve’s meeting minutes on Wednesday will provide crucial policy guidance. Oil prices declining below $72 and the 10-year Treasury yield at 4.48% indicate easing inflationary pressures, while the Dow breaching 53,000 signals strong market breadth.

Source

• https://www.nasdaq.com/

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

• https://www.dowjones.com/