NEW YORK, July 9, 2026, 12:08 EDT – The Nasdaq Composite advanced at midday Thursday, propelled by a surge in chip-equipment and memory stocks, even as major AI platform names like NVIDIA and Microsoft traded lower. The market's rotation into supply-chain beneficiaries highlighted a nuanced shift in investor sentiment within the technology sector.
The Philadelphia SE Semiconductor Index jumped 5% early in the session, according to Reuters, with Applied Materials and Micron Technology leading the charge. Micron's announcement of a massive U.S. investment plan—over $250 billion through 2035—redirected attention to companies that provide the hardware and components essential for AI infrastructure, rather than just the software and platform giants.
Invesco QQQ Trust, which tracks the Nasdaq-100, climbed 1.5% to $722.00, while the SPDR S&P 500 ETF Trust rose 0.6% to $750.05. The SPDR Dow Jones Industrial Average ETF Trust lagged, gaining only 0.4% to $524.61. Notably, more stocks advanced than declined on both the NYSE and Nasdaq, indicating broad-based buying beyond the megacaps.
Micron Technology soared 7.5% to $1,020.00 after CEO Sanjay Mehrotra called data and memory “foundational to the modern economy.” The company aims to produce 40% of its DRAM chips domestically, with a construction milestone at its Clay, New York fab completed more than a quarter ahead of schedule. Applied Materials gained 6.8% to $609.45, and Advanced Micro Devices rose 7.3% to $555.15 as investors sought alternatives to NVIDIA for AI chip exposure.
In contrast, NVIDIA dropped 1.0% to $201.98, and Microsoft fell 0.8%, as traders rotated out of high-flying AI names amid concerns about rising spending and supplier risk. PepsiCo also declined 3.4% to $137.67 after warning of higher commodity costs and reporting a 2% drop in North American food sales despite price cuts on brands like Lay's and Doritos.
The macro backdrop remained uncertain. Weekly U.S. jobless claims came in at 215,000, below the 218,000 forecast, suggesting a steady labor market. However, Federal Reserve minutes from June showed some officials questioned whether inflation might force tighter policy, adding to rate hike worries. Oil prices pulled back slightly, with Brent crude at $77.91 a barrel and WTI at $73.14, but geopolitical risks—including tensions in the Middle East and the Strait of Hormuz—kept markets on edge.
Equity repo markets, which involve borrowing cash short-term using stocks as collateral, remained tight after a funding spike in June. Morgan Stanley’s Martin Tobias warned that the risk of another spike hasn’t dissipated. Independent trader Kevin Muir noted that while leverage remains high and the market is tilted for gains, a jump in oil or a hawkish Fed could trigger a rapid selloff.
For now, AI hardware stocks appear to be the safest bet for investors navigating broader macro concerns. The afternoon focus will be on whether Micron, AMD, and Applied Materials can sustain the Nasdaq’s momentum, while NVIDIA, Microsoft, and consumer stocks continue to lag.
