Nasdaq Surges 1.12% to 26,121 as AI-Led Tech Rally Powers Dow to Record Close Above 53,000

Mumbai, July 7: US stock markets concluded the first trading session of the holiday-shortened week with robust gains, driven by a sharp rebound in artificial intelligence and semiconductor stocks. The tech-heavy Nasdaq Composite led the advance, while the Dow Jones Industrial Average achieved a historic milestone, closing above the 53,000 level for the first time.

The S&P 500 also extended its winning streak, buoyed by broad-based participation across technology, industrials, and financial sectors. Investors now turn their attention to the Federal Reserve meeting minutes and the upcoming second-quarter earnings season for further direction.

Nasdaq Jumps 1.12% to 26,121.16 as Chip Stocks Recover from Pullback

The Nasdaq Composite (^IXIC) surged by 288.49 points, or 1.12%, to settle at 26,121.16, after trading in a daily range of 25,963.44 to 26,209.76. Trading volume for the session stood at 6.85 billion shares, moderating from the three-month average of 10.02 billion. The index’s previous close was 25,832.67, while the opening price was 25,999.61.

The 52-week range for the Nasdaq stands between 20,323.02 and 27,190.21. The index’s advance was fuelled by renewed investor confidence in the artificial intelligence trade, following a brief period of profit-taking in semiconductor names during the previous week.

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The Roundhill Memory ETF (DRAM) jumped 8%, recovering from a 9% drop in the prior session, while the iShares Semiconductor ETF (SOXX) gained nearly 3%, signalling a strong recovery in the sector.

S&P 500 Advances 0.72% to 7,537.43 as Rally Broadens Beyond Mega-Caps

The S&P 500 (^GSPC) rose by 54.19 points, or 0.72%, closing at 7,537.43, with intraday movements between 7,500.97 and 7,551.31. The previous close stood at 7,483.24, and the index opened at 7,506.96. Volume for the benchmark totalled 3.00 billion shares, compared to the average volume of 5.59 billion. The 52-week range for the S&P 500 is 6,201.00 to 7,620.90.

Unlike recent sessions dominated by a handful of mega-cap technology companies, Monday’s rally saw gains spread across industrial, healthcare, and financial stocks, indicating healthier market breadth.

The State Street Technology Select Sector ETF (XLK) added nearly 2%, led by a 7% climb in Western Digital and a 2.8% rise in Teradyne. The index is now within 1% of its record high, supported by positive economic signals and expectations of a measured Federal Reserve policy stance.

Dow Jones Hits Record Close Above 53,000 for First Time, Led by Financials and Industrials

The Dow Jones Industrial Average (^DJI) climbed 155.84 points, or 0.29%, to a record closing high of 53,055.91, after touching an intraday peak of 53,060.10. The index opened at 52,828.45, compared to the previous close of 52,900.07.

Trading volume on the blue-chip index totalled 467.4 million shares, with the 52-week range between 43,340.68 and 53,060.10. Gains were spearheaded by Goldman Sachs (GS), which surged 3.29%, and Boeing (BA), which rallied 3.54%. IBM added 3.42%, while Caterpillar (CAT) rose 0.60%.

However, consumer and healthcare stocks weighed on the index, with Nike (NKE) falling 3.77%, Home Depot (HD) declining 2.93%, and UnitedHealth (UNH) dropping 1.73%. The Dow’s record close above 53,000 marked a significant psychological milestone for the blue-chip index.

Top Nasdaq Gainers: AMD Surges 9.88%, Qualcomm Gains 6.07% on AI Demand

The Nasdaq Composite witnessed strong performances across semiconductor and technology stocks. Advanced Micro Devices (AMD) led the charge with a 9.88% surge, followed by Qualcomm (QCOM) which jumped 6.07%. ASML Holding rose 5.59%, while Intel (INTC) gained 5.53% and Broadcom (AVGO) added 5.40%.

Western Digital (WDC) advanced 7.17%, and Analog Devices (ADI) climbed 4.28%. Tesla (TSLA) rallied 6.70%, while Alphabet (GOOGL) added 1.84% and Meta (META) gained 2.99%. Arista Networks (ANET) surged 8.31% among other notable gainers.

The semiconductor rebound was driven by sustained AI infrastructure spending and positive developments from key suppliers, including Nvidia’s denial of delays in its next-generation server systems.

Top Nasdaq Losers: Intuit Drops 3.45%, Starbucks Declines 3.27% on Sector Rotation

On the losing side, Intuit (INTU) dropped 3.45%, while Starbucks (SBUX) declined 3.27%. Charter Communications (CHTR) fell 3.06%, and PayPal (PYPL) lost 2.88%. Mondelez International (MDLZ) declined 2.84%, while Netflix (NFLX) fell 2.07%. Microsoft (MSFT) declined 0.93% after announcing 4,800 job cuts, and Datadog (DDOG) fell 1.92%. Other decliners included Adobe (ADBE) down 0.75% and Autodesk (ADSK) which remained flat.

The weakness in consumer-facing and streaming stocks reflected sector rotation, as investors shifted capital toward semiconductor and AI infrastructure names ahead of the earnings season.

Top S&P 500 Gainers: AMD Leads with 9.88% Surge, Broadcom and Qualcomm Follow

The S&P 500’s top performers were dominated by semiconductor companies. Advanced Micro Devices (AMD) led with a 9.88% gain, followed by Qualcomm (QCOM) which rose 6.07% and Intel (INTC) gaining 5.53%. Broadcom (AVGO) added 5.40%, while Analog Devices (ADI) climbed 4.28%. ON Semiconductor (ON) gained over 5%, and Microchip Technology (MCHP) rose more than 5% as well.

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Arista Networks (ANET) surged 8.24%, while Dell (DELL) jumped 4.19% after President Trump endorsed the company’s computers. IBM added 3.42%, and Goldman Sachs (GS) rose 3.29%.

The broad-based rally reflected renewed investor conviction in AI-driven growth, with analysts maintaining bullish outlooks on semiconductor demand despite recent volatility.

Top S&P 500 Losers: Danaher Drops 3.98%, Nike Declines 3.88% as Consumer Stocks Weaken

The S&P 500’s worst performers were concentrated in consumer discretionary and healthcare sectors. Danaher (DHR) fell 3.98%, while Nike (NKE) declined 3.88%. Lowe’s Companies (LOW) dropped 3.62%, and Intuit (INTU) fell 3.45%. Target (TGT) declined 3.29%, and Mondelez International (MDLZ) lost 2.84%. Starbucks (SBUX) fell 2.07%, and Home Depot (HD) declined 2.05%.

Other decliners included Procter & Gamble (PG) down 2.27%, Visa (V) losing 2.82%, and UnitedHealth (UNH) falling 1.73%. The weakness in consumer staples and retail stocks reflected profit-taking after recent gains, as investors rotated into technology and cyclical sectors.

Top Dow Gainers: Intel Rises 5.38%, Goldman Sachs Surges 3.29% as Industrials Shine

The Dow Jones Industrial Average’s top performers were led by Intel (INTC), which gained 5.38%. Caterpillar (CAT) rose 2.56%, while Goldman Sachs (GS) surged 3.29%. IBM added 2.13%, and Boeing (BA) rose 1.83%. JPMorgan Chase (JPM) gained 1.45%, and American Express (AXP) added 1.11%.

Chevron (CVX) declined 0.63%, while Honeywell (HON) rose 0.57%. The gains in financial and industrial stocks reflected optimism about the US economic outlook, with falling oil prices and easing geopolitical tensions providing additional support.

Top Dow Losers: Nike Falls 3.77%, Home Depot Declines 2.93% on Consumer Spending Concerns

The Dow’s worst performers were led by Nike (NKE), which fell 3.77%. Home Depot (HD) declined 2.93%, while Visa (V) dropped 2.82%. Procter & Gamble (PG) fell 2.27%, and McDonald’s (MCD) declined 2.26%. UnitedHealth (UNH) dropped 1.73%, and Merck (MRK) fell 2.14%.

Amgen (AMGN) declined 2.06%, and Walmart (WMT) lost 1.06%. The weakness in consumer-facing stocks reflected concerns about spending patterns amid rising inflation and interest rate uncertainty. The divergence between technology and consumer stocks highlighted the ongoing sector rotation as investors positioned for the second-quarter earnings season.

Microsoft Drops 0.93% After Announcing 4,800 Job Cuts Amid AI Cost Pressures

Microsoft (MSFT) bucked the broader tech rally, declining 0.93% to close at 386.74 after the company announced plans to eliminate approximately 4,800 jobs, or 2.1% of its workforce. The restructuring will primarily impact its Xbox gaming division, with about 3,200 roles to be cut through fiscal year 2027, including 1,600 immediate layoffs. The move is part of Microsoft’s broader efficiency drive amid rising artificial intelligence infrastructure costs.

While the company continues to invest heavily in AI and cloud computing, the job cuts signal margin pressures, particularly as Azure growth faces rising chip expenses and weaker demand for gaming hardware. The stock has fallen nearly 23% in the first half of 2026, marking its worst first-half performance since 2022.

Dell Surges 4.19% After Trump Endorses Company’s Computers from White House

Dell Technologies (DELL) jumped 4.19% after President Donald Trump promoted the company’s computers during a White House ceremony marking the launch of Trump Accounts. “Go out and buy a Dell computer,” Trump said at the event, where Dell founder Michael Dell and his wife, Susan, pledged more than $6 billion to the children’s investment program. The endorsement provided a significant boost to Dell shares, which have gained over 40% this year. The company’s stock traded at $411.80 at the close, reflecting continued investor confidence in the hardware maker’s AI infrastructure positioning.

TeraWulf Jumps 4.86% on $19 Billion AI Data Centre Lease with Anthropic

TeraWulf (WULF) surged 4.86% after the digital infrastructure firm signed a 20-year lease with AI company Anthropic for a purpose-built AI data centre campus at the Justified Data site in Hawesville, Kentucky. The contract is valued at approximately $19 billion in revenue over its initial term.

The facility will support about 400 megawatts of capacity, with first power delivery expected in the second half of 2027. The deal validates TeraWulf’s strategic pivot from bitcoin mining to providing high-performance computing infrastructure, and the stock has more than doubled in value this year, rising over 100% year-to-date.

Solstice Advanced Materials Sinks 15% on $14.5 Billion Element Solutions Acquisition

Solstice Advanced Materials (SOLS) plunged 15% after the company announced it had agreed to acquire Element Solutions (ESI) for $14.5 billion including debt. The cash-and-stock deal is expected to close in the first half of 2027, with Element shareholders owning approximately 44% of the combined company.

Despite the sharp pullback, Solstice shares remain up about 40% this year. Element Solutions shares slipped 2.5% but are up 70% in 2026. The acquisition is aimed at expanding Solstice’s exposure to high-growth electronics and AI infrastructure markets.

Micron Signs Long-Term Supply Agreement with Ford for Vehicle Chips

Micron Technology (MU) signed a long-term customer agreement with Ford Motor (F) to supply advanced memory and storage chips for next-generation vehicles. The deal is part of Micron’s efforts to expand capacity to support US critical infrastructure, including further build-out of its fabrication facility in Manassas, Virginia.

Micron shares traded up 0.94%, while Ford gained roughly 2%. The partnership underscores the growing importance of advanced memory and storage as vehicles become more intelligent and data-intensive, with AI integrating more deeply into the auto manufacturing space.

SK Hynix $28 Billion US IPO to Test AI Rally as Chipmaker Prepares Nasdaq Listing

SK Hynix, the world’s second-largest memory chipmaker, plans to raise approximately $28 billion through a US IPO of American depositary shares on Nasdaq. The offering size was slightly reduced following a recent share price dip, signalling some caution around stretched AI valuations. The chipmaker, a key supplier of high-bandwidth memory used in AI systems, has seen its stock surge about 260% this year, pushing its valuation past $1 trillion. The listing will also test whether investor appetite for AI infrastructure stocks can sustain after a sharp rally. Proceeds will fund expansion in advanced chipmaking capacity and equipment as SK Hynix looks to strengthen its position in the AI supply chain.

The upcoming Federal Reserve minutes and the start of the second-quarter earnings season will be the primary focal points for markets. Services PMI data indicated steady expansion with easing price pressures, while oil prices declined on OPEC+ output increases. The tech sector’s rebound, led by semiconductors, suggests renewed investor conviction in AI infrastructure spending, although Microsoft’s job cuts highlight cost pressures. Treasury yields and the dollar remain stable, with gold gaining as a safe-haven asset. Macroeconomic data and corporate results will determine whether the current rally can sustain momentum.