On Thursday, July 9, 2026, global stock markets saw a significant uplift, primarily driven by a rally in chip manufacturing companies. The Nasdaq notably ended sharply higher, gaining 1.30% to 26,206.89 points, the S&P 500 climbed 0.81% to 7,543.66 points, and the Dow Jones Industrial Average rose 0.27% to 52,487.41 points. This positive market movement occurred despite ongoing concerns about renewed military actions in the Middle East between the US and Iran, which had previously caused oil prices to jump.
Key drivers of the chip sector's performance included Micron Technology, which jumped 4.5% after announcing plans to invest over $250 billion in the US through 2035, aiming to capitalize on the soaring demand for memory chips for artificial intelligence. Applied Materials saw a 3.2% increase, and Sandisk surged 7.6%. Furthermore, reports indicated that China might grant domestic AI firms limited access to Nvidia's H200 chips, and SK Hynix's forthcoming $28 billion US share listing was significantly oversubscribed, with plans to price its American Depositary Receipts at $149, raising approximately $26.5 billion. The PHLX chip index surged 3.06% for the second consecutive session, and Meta Platforms also rose following news of its plans to manufacture AI chips.
Despite the geopolitical tensions, oil prices retreated, with US crude closing down 2.3% at $71.83 a barrel and Brent falling 2.5% to $76.05 per barrel. The normalization of oil prices helped ease inflation worries, which analysts like Ross Mayfield of Baird noted were critical for broadening the bull market beyond AI-centric stocks. In economic news, initial claims for state unemployment benefits decreased by 2,000 to a seasonally adjusted 215,000 for the week ended July 4, suggesting stability in the US labor market. However, home sales unexpectedly dipped 2.4%, and house prices hit a record high due to tight inventory, posing affordability challenges.
The Federal Reserve's stance on interest rates remained a point of focus. While the Fed kept rates unchanged at its June meeting under new Chair Kevin Warsh, minutes revealed some policymakers advocated for a rate hike. Traders are now pricing in a likely 25-basis-point rate hike by the Fed's December meeting. Entering the quarterly reporting season, analysts expect S&P 500 earnings to increase 24% year-over-year, with technology companies projected to contribute significantly to this growth. The 10-year US Treasury yields ticked lower to 4.54% after reaching a seven-week high the previous day.
