The Nasdaq rose sharply Thursday as gains in Micron Technology and other semiconductor stocks outweighed investor concerns over renewed U.S.-Iran attacks and inflation risks tied to the Middle East conflict.
By yourNEWS Media Newsroom
The Nasdaq Composite posted a strong gain Thursday as a rally in semiconductor shares, led by Micron Technology, lifted technology stocks and offset concerns that renewed U.S. and Iranian attacks could extend the Middle East conflict and add pressure to inflation.
The PHLX semiconductor index advanced for a second consecutive session, reflecting renewed investor interest in chipmakers tied to artificial intelligence demand.
Micron Technology rose after the company outlined plans to invest more than $250 billion in the United States through 2035. The investment is aimed at positioning the company to benefit from rising demand for memory chips used in artificial intelligence systems.
Applied Materials and Sandisk also gained as chip stocks broadly moved higher.
The rally came despite geopolitical concerns after Tehran said it struck U.S. military targets in Kuwait, Qatar and Bahrain following U.S. strikes against Iran on Wednesday.
AI-linked shares have experienced volatility in recent sessions as investors weighed whether the advance that helped push Wall Street to record levels in 2026 can continue.
“This is still very much an AI bull market. For a bit, it was starting to broaden out, but that’s contingent on oil prices and interest rates staying anchored, and with this flare-up in the Middle East, that calls that part of the bull market into question,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
Meta Platforms also rose after Reuters reported that the company plans to begin manufacturing AI chips in September.
According to preliminary data, the S&P 500 gained 59.12 points, or 0.79%, to close at 7,541.83. The Nasdaq Composite added 328.11 points, or 1.27%, to end at 26,198.76, while the Dow Jones Industrial Average rose 133.31 points, or 0.25%, to finish at 52,481.70.
Investors are also preparing for quarterly earnings season. Analysts, on average, expect S&P 500 earnings to rise 24% from a year earlier, with technology companies expected to account for much of the increase, according to LSEG I/B/E/S.
The S&P 500 is trading at about 20 times expected earnings, down from 21 times a month ago.
Economic data showed that the number of Americans filing claims for unemployment benefits fell last week, suggesting the labor market remained stable even after job growth slowed in June.
The Federal Reserve kept interest rates unchanged at its June meeting under new Chair Kevin Warsh. Minutes released Wednesday showed that several policymakers saw a case for raising borrowing costs before ultimately agreeing to leave rates steady.
Traders are pricing in a likely 25-basis-point rate hike by the Fed’s December meeting, according to CME’s FedWatch tool.
In individual stocks, PepsiCo fell even after the snacks and soda company beat second-quarter revenue estimates.
Costco Wholesale dropped to a six-month low after the retailer reported slowing comparable sales growth for June.
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