NEW YORK, July 9, 2026, 12:08 p.m. EDT – The Dow Jones Industrial Average (INDEXDJX:.DJI) climbed higher during midday trading on Thursday, with the bulk of its upward momentum coming from two heavyweight components: Cisco Systems (NASDAQ:CSCO) and Goldman Sachs Group (NYSE:GS). Unlike market-cap-weighted indices, the Dow is a price-weighted index, meaning stocks with higher share prices exert a greater influence on its movements.
As of 11 a.m. ET, the Dow had added approximately 141 points. Cisco contributed by rising $4.17, or 3.7%, while Goldman Sachs surged $32.66, or 3.2%. According to MarketWatch, each $1 change in a Dow component translates to roughly 5.94 points on the index. Consequently, Cisco and Goldman together accounted for about 219 Dow points—surpassing the index's net gain at that time. This highlights how a few high-priced stocks can disproportionately drive the price-weighted benchmark.
The broader market also posted gains, bouncing back from Wednesday's decline. The Dow closed up 167.18 points, or 0.32%, at 52,515.57. The S&P 500 (INDEXSP:.INX) rose 0.57%, and the Nasdaq Composite (INDEXNASDAQ:.IXIC) advanced 0.76%, buoyed by strength in technology and semiconductor stocks. The Philadelphia semiconductor index surged 5% early in the session, with Applied Materials (NASDAQ:AMAT) climbing 9.4% and Micron Technology (NASDAQ:MU) gaining 9% after announcing plans to invest over $250 billion in U.S. operations through 2035.
Other Market Movers and Sector Performance
Financial and healthcare stocks also supported the Dow. American Express (NYSE:AXP), JPMorgan Chase (NYSE:JPM), and UnitedHealth Group (NYSE:UNH) all posted gains. However, IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT) declined, with Reuters reporting that Starbucks (NASDAQ:SBUX) is leveraging AI tools to reduce its reliance on their services.
In commodities, West Texas Intermediate crude oil slipped 1.74% to $72.24 per barrel, while gold traded up 1.37% to $4,138.30, reflecting ongoing safe-haven demand amid geopolitical tensions. The U.S. military conducted new strikes against Iran to maintain access to the Strait of Hormuz, and Iran retaliated with attacks on U.S. assets in Kuwait and Bahrain, according to Reuters.
Labor Data and Federal Reserve Insights
Positive labor data provided additional support for equities. Initial jobless claims fell by 2,000 to 215,000 for the week ended July 4, below the 218,000 expected in a Reuters poll, suggesting layoffs remain contained. However, minutes from the Federal Reserve's June meeting, released Wednesday, indicated that some officials considered a rate hike last month, introducing uncertainty. LPL Financial chief economist Jeffrey Roach noted there was “some ambiguity in the minutes” as policymakers debated their options.
Market analysts remain cautious about the sustainability of the bounce. HSBC's chief multi-asset strategist, Max Kettner, warned that “the rates market is really following oil prices,” and a further spike in crude could reignite inflation fears and push bond yields higher. The Dow is still about 1% below Monday's level above 53,000, reflecting the volatile backdrop.
For the afternoon session, the key question is whether the Dow can broaden its gains beyond Cisco and Goldman. Stability in oil prices, declining yields, and continued strength in chip stocks could sustain momentum. Conversely, a reversal in crude or rising rates might turn this into a temporary, price-weighted bounce rather than a genuine rally in blue-chip stocks.
