Nasdaq Gains 0.34% as Chip Stocks Rally, Dow and S&P Edge Higher Amid US-Iran Tensions

Mumbai, July 9: The Nasdaq Composite advanced at the opening bell on Thursday, propelled by a broad-based surge in semiconductor shares, while the Dow Jones Industrial Average and S&P 500 also registered modest gains as investors weighed renewed military hostilities between the United States and Iran against signs of possible diplomatic engagement.

The tech-heavy index added 87.08 points, or 0.34%, to trade at 25,957.73 shortly after 10:00 a.m. Eastern Time, recovering from Wednesday’s volatile session that saw the Dow tumble amid geopolitical jitters.

Meanwhile, the S&P 500 climbed 17.92 points, or 0.24%, to 7,500.63, and the Dow industrials rose 70.48 points, or 0.13%, to 52,418.87, as traders digested fresh airstrikes on Iranian targets and President Donald Trump’s remarks that Tehran had called to negotiate a deal.

Chip Stocks Surge 5% as Semiconductor ETF Leads Market Rebound, Micron and Sandisk Jump Over 7%

The driving force behind Thursday’s tech-led recovery was the semiconductor sector, with the iShares Semiconductor ETF (SOXX) climbing nearly 5% in early trading, while the VanEck Semiconductor ETF (SMH) advanced 4%. Among the standout performers, Micron Technology (MU) surged more than 8%, adding to Wednesday’s 1.1% gain, and Sandisk (SNDK) rallied over 8%, pushing further above its 50-day moving average.

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Other chipmakers followed suit: Applied Materials (AMAT) jumped 9.25%, Lam Research (LRCX) gained 9.18%, and KLA Corporation (KLAC) rose 10.33%, reflecting strong demand for memory and equipment stocks.

The broader Nasdaq-100 heatmap showed a clear divide, with technology and communication services names advancing while consumer defensive and healthcare stocks lagged, underscoring investors’ preference for growth-oriented AI-exposed equities even as geopolitical risks simmered.

Oil Prices Stabilise Near $73 as Trump Signals Iran Seeks Deal After US Strikes on 90 Targets

Crude oil futures eased from Wednesday’s sharp rally after President Trump told reporters that Iran had called “a little while ago” to seek a deal, though he expressed scepticism about Tehran’s trustworthiness. West Texas Intermediate crude dipped to around $73.10 per barrel, while Brent crude traded near $78, as markets interpreted the remarks as a potential off-ramp from escalating conflict.

The pullback in oil helped calm inflation fears and supported equity indices, though the situation remained fluid: U.S. Central Command confirmed additional strikes on 90 Iranian military targets overnight in response to Tehran’s attacks on commercial shipping in the Strait of Hormuz, and Iran retaliated by striking targets in Kuwait and Bahrain. Despite the ongoing hostilities, investors focused on the prospect of diplomatic resolution, with analysts noting that any prolonged disruption to Middle East energy flows could still reignite price pressures, but for now, the stabilisation in crude provided a tailwind for risk assets.

US Jobless Claims Fall to 215,000, Beating Estimates as Labour Market Shows Resilience

On the macroeconomic front, the Labor Department reported that initial jobless claims for the week ended July 4 declined by 2,000 to a seasonally adjusted 215,000, below economists’ consensus estimate of 218,000 and the lowest total since late May. The four-week moving average also fell to 218,750 from 222,500 the previous week, indicating that the earlier spike in claims, attributed to seasonal distortions from school holidays, has subsided.

Continuing claims, which track the unemployed population still receiving benefits, rose slightly by 8,000 to 1.814 million, but the increase was also seen as seasonal. Federal Reserve minutes released on Wednesday reinforced the view of a “slow hire, slow fire” labour market, with policymakers expecting stable employment conditions despite geopolitical uncertainty.

The data provided further evidence that the US economy remains on solid footing, reducing immediate pressure on the Federal Reserve to cut rates while keeping a potential hike later this year on the table.

PepsiCo Misses Earnings Estimates as North American Consumers Tighten Budgets; Shares Slide 4.6%

PepsiCo (PEP) reported mixed second-quarter results that disappointed Wall Street, sending its shares down 4.6% in early trading. The snack and beverage giant posted adjusted earnings of $2.20 per share, falling short of the $2.21 consensus forecast from analysts polled by LSEG, while revenue of $24.18 billion topped expectations of $23.95 billion, representing a 6% year-over-year increase.

However, the earnings miss was driven by softer-than-anticipated performance in North America, where consumers tightened spending on snacks and sodas amid rising inflationary pressures. Chairman and CEO Ramon Laguarta noted that “results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening.”

International segments posted double-digit sales growth, but the North American beverages unit grew only 7% while snack foods declined 2%, even after the company cut prices on key brands by roughly 15% in February. The company now expects a more gradual improvement in domestic trends for the remainder of the year, weighing on investor sentiment.

AstraZeneca Plunges 8% as Heart Drug Fails Late-Stage Trial, Erasing Year-to-Date Gains

AstraZeneca (AZN) suffered its sharpest decline in months, tumbling over 8% after the pharmaceutical giant announced that its investigational heart disease drug, Wainua, failed to meet the primary endpoint in a Phase 3 clinical trial. The company said that adding Wainua to the current standard of care “did not provide a statistically significant benefit on the composite outcome of cardiovascular mortality and recurrent CV events,” dealing a blow to the drug’s development programme.

The failure sent the stock down to $175.90, a drop of $13.38, and pushed the shares into negative territory for the year, erasing earlier gains. AstraZeneca stated that full trial results will be presented in August, and analysts will be closely watching for any implications for the company’s broader cardiovascular pipeline. The news contrasted with the overall market strength and highlighted the binary nature of biopharmaceutical catalysts.

SK Hynix US Offering Oversubscribed 7 Times Ahead of Nasdaq Debut, IPO Demand Soars

Investor appetite for AI-related semiconductor stocks remained voracious as SK Hynix, the South Korean memory chip giant, prepares for its highly anticipated US trading debut on Friday.

The company’s offering of approximately 178 million American depositary receipts (ADRs) is reportedly oversubscribed by more than seven times, according to a person familiar with the matter, underscoring robust institutional demand. The ADRs, each representing one-tenth of a common share, are set to be priced later on Thursday, with a reference price of 242,500 won per ADR based on the July 3 closing price in Seoul.

The listing, valued at roughly $28 billion, would mark the world’s second-largest share sale after SpaceX’s record $85.7 billion IPO last month. SK Hynix’s Seoul-listed shares closed up 5.3% at 2,186,000 won on Thursday, reflecting continued bullish sentiment as the company ramps up production to meet surging demand for high-bandwidth memory used in AI applications.

Levi Strauss Falls 5.5% Despite Earnings Beat as Full-Year Guidance Disappoints

Levi Strauss (LEVI) saw its shares decline more than 5% even after the apparel maker reported better-than-expected second-quarter results. Adjusted earnings came in at 28 cents per share, topping the 24-cent consensus, while revenue also exceeded estimates.

However, the company’s full-year profit forecast and current-quarter guidance fell short of analysts’ expectations, triggering a sell-off. CEO Michelle Gass maintained that “demand remains healthy” and highlighted strength across key consumer segments, but investors focused on the cautious outlook amid rising input costs and uncertain consumer spending patterns.

The stock, which traded around $24.43, had been flat for the year, and the disappointing guidance raised questions about the company’s ability to sustain momentum in a challenging retail environment.

Salesforce Drops 4.5% on KeyBanc Downgrade; Meta and Microsoft Also Decline Among Mega-Caps

Among the Magnificent Seven stocks, Salesforce (CRM) tumbled 4.5% after KeyBanc downgraded the software giant to “sector weight” from “overweight,” citing difficulty in finding evidence of future upside based on channel checks and disclosed numbers. The downgrade added to pressure on software names, with Microsoft (MSFT) falling 1.8% and Meta Platforms (META) shedding 1.7% in early trading.

Meanwhile, Nvidia (NVDA) bucked the trend, rising 1% after advancing 3.7% on Wednesday, while Tesla (TSLA) edged up 0.25%. The mixed performance among mega-caps reflected a rotation within the technology sector, with hardware and semiconductor names outperforming software and advertising-focused peers.

Investors continued to assess the implications of the AI investment boom, with Apollo Global’s chief economist Torsten Sløk warning that a slower-than-expected payoff from hyperscaler capital expenditure could trigger broader market corrections.

Market Breadth: Technology Leads Sector Gains, Consumer Staples and Healthcare Weigh on Indices

Across the S&P 500, the information technology sector advanced 1.5%, leading the 11 industry groups, while consumer discretionary and financials also posted gains. In contrast, consumer staples fell sharply, dragged down by PepsiCo’s decline and a 5% drop in Coca-Cola (KO), while healthcare names like AstraZeneca and Amgen (AMGN) weighed on the sector.

The Dow’s heatmap showed Caterpillar (CAT) rising over 3% as the top gainer, followed by Goldman Sachs (GS) up 2.9%, while Salesforce and Microsoft were the biggest laggards. The Nasdaq-100 heatmap reflected similar dynamics, with chipmakers occupying the top spots and defensive stocks lagging.

Trading volume remained below average, with the Nasdaq seeing 1.52 billion shares exchanged by mid-morning, compared to the three-month average of 9.93 billion, suggesting some investor caution ahead of key earnings reports from Delta Air Lines (DAL) and Taiwan Semiconductor Manufacturing (TSM) later this week.

Nasdaq, S&P 500 and Dow All Open Higher as Investors Balance Geopolitical Risk and AI Optimism

In summary, the three major US indexes opened higher on Thursday, with the Nasdaq leading the charge on the back of semiconductor strength, while the Dow and S&P 500 posted more modest gains.

The stabilisation of oil prices, better-than-expected jobless claims, and optimism around SK Hynix’s upcoming listing all contributed to a risk-on tone, even as fresh US-Iran military exchanges kept geopolitical risk elevated. Investors also monitored developments in the autonomous vehicle space, with the National Highway Traffic Safety Administration signalling it may drop steering-wheel requirements for driverless cars, a potential boost for Tesla and other players. As the session progressed, market participants looked ahead to existing home sales data and further corporate earnings, while remaining vigilant to any escalation in Middle East hostilities that could upend the fragile recovery.

Nasdaq Composite: Key Levels and Volume Snapshot

The Nasdaq Composite, which tracks more than 3,000 stocks, traded within a day range of 25,880.17 to 26,063.75, with a previous close of 25,870.65 and an opening print of 25,918.31. The index remains well above its 52-week low of 20,492.63 but below the peak of 27,190.21, reflecting the volatile but upward trajectory of tech shares over the past year.

The average daily volume for the Nasdaq stands at approximately 9.93 billion shares, though Thursday’s early volume was significantly lighter, indicating some hesitation among traders.

The S&P 500 saw a day range of 7,483.29 to 7,519.49, while the Dow traded between 52,249.44 and 52,445.80, all within striking distance of their respective 52-week highs, underscoring the resilience of US equities despite headwinds from geopolitics and shifting rate expectations.

Market participants should track US-Iran diplomatic developments, oil price movements and Federal Reserve policy signals. Strong labour data supports spending but may delay rate cuts. Semiconductor growth remains key, though high valuations need monitoring. Diversification across sectors and regions, along with upcoming earnings results, may help manage risks.

Source

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