Technology Leads Wall Street Higher
The Nasdaq closed sharply higher on Thursday as a rally in semiconductor shares outweighed investor concerns over renewed attacks between the United States and Iran. The broader market also finished in positive territory, with chip stocks giving Wall Street its strongest support of the session.
Micron Sparks a Semiconductor Rally
Micron Technology rose 4.5% after outlining plans to invest more than 250 billion dollars in the United States through 2035. The company is positioning itself to benefit from rising demand for memory chips linked to the expansion of artificial intelligence.
Chip Index Gains for a Second Day
The PHLX chip index advanced 3.06%, marking its second consecutive session of gains. Applied Materials climbed 3.2%, while Sandisk surged 7.6%, extending the strength across the semiconductor sector.
Geopolitical Risk Remains in Focus
The market advance came despite renewed tension in the Middle East. Tehran said it had struck U.S. military targets in Kuwait, Qatar and Bahrain after U.S. attacks against Iran on Wednesday. The escalation kept investors focused on the risk that the conflict could continue to pressure oil prices and inflation.
AI Trade Still Drives Sentiment
Artificial intelligence-related stocks have been volatile in recent sessions as investors questioned whether the rally that pushed Wall Street to record levels in 2026 can continue. Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, said: “This is still very much an AI bull market.” He also warned that higher oil prices and interest rates could challenge the broader rally.
Meta Gains on AI Chip Plans
Meta Platforms also moved higher after reports that the company plans to begin manufacturing AI chips in September. The news added to investor interest in companies building infrastructure for artificial intelligence.
Major Indexes Close Higher
The S&P 500 rose 0.81% to end at 7,543.66 points. The Nasdaq gained 1.30% to close at 26,206.89 points, while the Dow Jones Industrial Average added 0.27% to finish at 52,487.41 points.
Technology and Consumer Discretionary Lead
Seven of the 11 S&P 500 sector indexes ended higher. Information technology led the advance with a gain of 1.65%, followed by consumer discretionary, which rose 1.46%.
S&P 500 Stays Close to Record High
After Thursday’s gains, the S&P 500 is up about 10% so far in 2026. The index remains less than 1% below its record closing high reached on June 2.
Earnings Season Becomes the Next Test
With quarterly results about to begin, analysts expect S&P 500 earnings to rise 24% year over year. Technology companies are expected to account for a large share of that increase. The S&P 500 is trading at about 20 times expected earnings, down from 21 times one month earlier.
Labor Market Shows Stability
New U.S. unemployment claims fell last week, suggesting that the labor market remains steady despite slower job growth in June. The data helped ease some concerns about a sharper deterioration in employment conditions.
Fed Rate Expectations Shift
The Federal Reserve kept interest rates unchanged at its June meeting under new Chair Kevin Warsh. Minutes released on Wednesday showed that some policymakers saw a case for raising borrowing costs before ultimately agreeing to hold steady.
Markets Price December Rate Hike
Traders are now pricing in a likely 25-basis-point rate hike by the Fed’s December meeting, according to CME’s FedWatch tool. The outlook reflects concern that inflation could remain elevated if energy prices keep rising.
PepsiCo and Costco Weigh on Retail Sentiment
PepsiCo fell 3.3% even after beating second-quarter revenue estimates. Costco Wholesale dropped 4.2% to a six-month low after reporting a slowdown in comparable sales for June.
Market Breadth and Trading Volume
Advancing stocks outnumbered declining ones in the S&P 500 by a ratio of 1.5 to one. Trading activity was relatively light, with 14.7 billion shares changing hands on U.S. exchanges, compared with an average of 22.9 billion shares over the previous 20 sessions.
