New York, July 9, 2026 – A late-session rally in chip and memory stocks propelled U.S. equities higher on Thursday, broadening the AI-driven advance beyond mega-cap names like Nvidia. The S&P 500 gained 0.84%, the Nasdaq Composite rose 1.26%, and the Dow Jones Industrial Average added 0.40%, according to late trade data from Reuters. The rally came despite fresh geopolitical tensions between the U.S. and Iran, as investors refocused on the artificial intelligence supply chain.
The move was notable for its breadth: gains were led by memory makers, chip equipment suppliers, and smaller growth stocks, not just the usual mega-cap leaders. This suggested investors were rotating into what Baird investment strategy analyst Ross Mayfield called the 'picks and shovels' plays tied to AI—companies that supply the infrastructure for data-center spending. 'This is still very much an AI bull market,' Mayfield told Reuters, though he cautioned that broader gains depend on oil prices and interest rates staying in check.
Micron Technology (NASDAQ: MU) jumped 5.2% after announcing plans to increase its U.S. investment to over $250 billion by 2035. The memory maker said the funds would help it produce 40% of its DRAM chips domestically. CEO Sanjay Mehrotra described data and memory as 'foundational' for the economy. Micron also noted that its New York project had reached a key concrete-pour milestone more than 25% ahead of schedule, signaling strong execution.
The Philadelphia Semiconductor Index soared 4.6%, while the S&P 500 tech sector added 1.91%. Other chip names also rallied: Advanced Micro Devices (NASDAQ: AMD) rose 5.36%, On Semiconductor (NASDAQ: ON) gained 4.91%, and Applied Materials (NASDAQ: AMAT) climbed 3.06%. Nvidia (NASDAQ: NVDA) itself slipped 0.04%, underscoring that the move was broader than the AI leader alone.
Meta Platforms (NASDAQ: META) also contributed to the tech narrative, as investors digested its plan to produce its own AI chip by September, working with Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM). The move is seen as an effort to reduce reliance on Nvidia and AMD, further highlighting the competitive dynamics in the AI chip space.
Macroeconomic data did little to shake the market. Initial jobless claims fell by 2,000 to 215,000 for the week ended July 4, close to forecasts. Pantheon Macroeconomics' Samuel Tombs called the claims data 'low and stable.' Federal Reserve minutes from the June meeting, released Wednesday, showed policymakers held rates at 3.50%-3.75% and reiterated that inflation remains above the 2% target. New York Fed President John Williams offered no clear signal for the July 28-29 meeting, sticking to the Fed's 'data-dependent' stance. He noted that market expectations for lower oil prices in the next six to twelve months seemed a 'reasonable baseline.'
Oil prices declined, with Brent crude settling down 2.2% at $76.30 a barrel and U.S. crude falling 2.0% to $72.08. However, refined product markets remain tight, with U.S. refining margins hitting records. The crack spread rose to $64.58 a barrel on July 8. 'There’s just not enough refining capacity left globally,' said Neil Crosby at Sparta Commodities, warning that the shortage could keep pressure on consumers and the Fed even if crude prices ease.
Looking ahead, earnings season looms. Wall Street expects S&P 500 profits to jump 24% year-over-year, with tech leading the charge. The S&P 500 trades at nearly 20 times forward earnings, down from 21 a month ago. Thursday’s action showed that investors are willing to pay up for AI power, memory, and chips—but not everything got a lift. Consumer staples lagged, with PepsiCo (NASDAQ: PEP) down 3.56% and Costco Wholesale (NASDAQ: COST) off 4.15%, reflecting weak retail sales data.
The message from the market is clear: the AI bull run is alive, but it’s becoming more selective. Broader gains may depend on oil and rates staying cooperative, and the next few weeks of earnings will test whether the rally has legs beyond the semiconductor sector.
