NEW YORK, July 9, 2026, 18:02 EDT — Wall Street staged a recovery on Thursday, driven by a surge in semiconductor stocks as Micron Technology (NASDAQ:MU) announced a massive $250 billion investment in US facilities by 2035. The move reignited investor enthusiasm for AI-driven memory demand, despite ongoing geopolitical tensions and volatile oil prices.
The Nasdaq Composite rose 1.30% to 26,206.89, while the S&P 500 gained 0.81% to 7,543.66. The Dow Jones Industrial Average lagged, adding just 0.27% to close at 52,487.41. The Philadelphia Semiconductor Index jumped 3.06%, marking its second consecutive session of gains, and has surged over 5% across Wednesday and Thursday.
Micron's investment plan, which exceeds its previous $200 billion commitment, includes a new semiconductor campus in New York, expansions in Idaho and Virginia, and $3 billion for the US chip supply chain. Shares of Micron rose 4.5% on the day. Other chip-related stocks also rallied: Applied Materials (NASDAQ:AMAT) gained 3.2%, and Sandisk (NASDAQ:SNDK) jumped 7.6%.
The rally was notably narrow, with the Dow still down over the two-session period. Trading volume remained light at about 64% of the 20-day average, down from 77% on Wednesday, according to exchange data. “Very much an AI bull market,” said Ross Mayfield, investment strategy analyst at Baird, though he cautioned that wider gains may depend on tame oil and interest rates.
Oil prices retreated on Thursday, providing some relief to equity markets. Brent crude fell $1.72, or 2.2%, to $76.30 a barrel, while US West Texas Intermediate lost $1.44, or 2.0%, to $72.08. The pullback came despite renewed US-Iran strikes and reports of a slower-than-expected reopening of the Strait of Hormuz, which normally carries about 20% of global oil. Goldman Sachs estimated Persian Gulf oil flows at 70-73% of normal after tanker incidents.
In a separate development, Meta Platforms (NASDAQ:META) announced plans to produce its own AI chip starting in September, aiming to cut reliance on Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). According to an internal memo seen by Reuters, Meta is partnering with Broadcom (NASDAQ:AVGO) and intends to increase its computing capacity to 14 gigawatts next year. “You can’t become an AI titan if you are dependent on another company for chips,” said Mike Gualtieri, a Forrester vice president and principal analyst.
Bond markets stabilized, with the 10-year Treasury yield falling to 4.547% after hitting a seven-week high on Wednesday. Traders now price in an 87% chance that the Federal Reserve will hike rates by year-end, according to Reuters. First-time jobless claims slipped by 2,000 to 215,000 for the week ended July 4, reinforcing the case for growth stocks.
Consumer stocks flashed a caution sign. PepsiCo (NASDAQ:PEP) dropped 3.3% despite beating revenue estimates, and Costco Wholesale (NASDAQ:COST) lost 4.2% to hit a six-month low after reporting slower June same-store sales. Seven of the 11 S&P 500 sectors gained, led by technology, but the advance was concentrated in a few big names.
Looking ahead, market direction will hinge on Middle East developments, oil price movements, and the sustainability of the chip rally. “Duration is the key here,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “The longer the conflict stretches, the easier it gets for inflation and earnings to turn into real trouble.”
