U.S. stock markets showed mixed performance on Monday, July 6, 2026, as the technology-heavy Nasdaq Composite led the way with a 1.07% gain, while the Dow Jones Industrial Average slipped 0.27%. The S&P 500 added 0.51% in late morning trading, reflecting a market that continues to be driven by artificial intelligence-related deals and semiconductor strength.
Key Index Movements
The Nasdaq Composite climbed 275.19 points to close at 26,107.86, powered by a 4.2% surge in the Philadelphia semiconductor index (SOX), which snapped a two-session losing streak. The S&P 500 rose 38.06 points to 7,521.30, while the Dow fell 141.72 points to 52,758.35. Market breadth was thin early on, with advancers leading decliners by a narrow margin on both the NYSE and Nasdaq, but no new 52-week highs were recorded on the major indices.
AI and Semiconductor Deals Drive Gains
Broadcom (NASDAQ:AVGO) shares jumped 5.7% after the company secured an extension of its chip supply agreement with Apple (NASDAQ:AAPL) through 2031. The deal provides Broadcom with a long-term annuity, according to Daniel Newman, CEO of Futurum Group. Apple accounts for roughly 20% of Broadcom's annual revenue, analysts noted. The news boosted the S&P 500's information technology sector, which led the day's gains.
TeraWulf (NASDAQ:WULF) also saw a significant boost, rising after announcing a 20-year lease with Anthropic at its Justified Data campus in Hawesville, Kentucky. The lease covers approximately 401 megawatts of critical IT load, with power expected to begin coming online in the second half of 2027 and full ramp-up by early 2028. CEO Paul Prager described the deal as a “long-duration revenue stream,” locking in an estimated $19 billion in contracted revenue.
Hedge Fund Activity and Market Context
Monday’s rally stood out against a backdrop of recent hedge fund selling. Goldman Sachs (NYSE:GS) reported that hedge funds had been net sellers of tech hardware stocks for four consecutive weeks through July 3, during which the SOX index fell 4.2%. Funds were buying index and ETF products while reducing single-stock holdings. The shift in sentiment suggests that some crowded trades may have been cleared out, according to Nathan Peterson of the Schwab Center for Financial Research.
Economic Data and Fed Outlook
Stocks found additional support from economic data. The Institute for Supply Management’s non-manufacturing PMI for June came in at 54.0, matching consensus forecasts and indicating continued growth in the services sector, albeit at a slightly slower pace. Combined with last week’s softer jobs numbers, traders have scaled back expectations for a Federal Reserve rate hike at the July 29 meeting. CME FedWatch data showed a 24% probability of a 25-basis-point hike, down from about 30% a week earlier.
The Federal Reserve is set to release the minutes from its first meeting under Chair Kevin Warsh on Wednesday. Steve Englander of Standard Chartered suggested the minutes may be “less informative” regarding policy views.
Earnings Season Ahead
Investors are now turning their attention to the upcoming earnings season. FactSet projects S&P 500 earnings growth of 23.3% year-over-year for the second quarter. Delta Air Lines (NYSE:DAL) and PepsiCo (NASDAQ:PEP) are among the companies reporting later this week. David Morrison of Trade Nation noted that this earnings season is crucial, and a touch of positive news could reignite the rally in the Magnificent 7 stocks.
Microsoft (NASDAQ:MSFT) slipped 1.8% after announcing it would cut about 4,800 jobs, or roughly 2.1% of its global workforce. The move did little to dampen overall market enthusiasm, as AI-related names continued to dominate trading.
