Nasdaq composite leads rally as chip stocks surge, oil falls

The Nasdaq composite rose about 1.3% on Thursday, July 9, 2026, leading U.S. stocks higher as semiconductor shares surged and oil prices retreated. Micron Technology fueled the chip rally after unveiling a $250 billion U.S. investment plan, helping markets look past renewed U.S.-Iran military strikes.

Wall Street closed broadly higher even as geopolitical risk stayed in focus. Investors rotated back into AI-linked hardware after a volatile stretch for chip names, while falling crude eased fears that energy costs would reignite inflation.

Key Takeaways

• The Nasdaq composite gained 1.30% to 26,206.89, outpacing the S&P 500 and Dow on July 9, 2026.
• Micron Technology led chip stocks higher after announcing plans to invest more than $250 billion in the U.S. through 2035 for AI memory demand.
• Brent crude fell 2.2% to $76.30 and U.S. crude dropped 2.0% to $72.08, pulling back from prior session spikes.
• Renewed U.S.-Iran attacks kept traders cautious, but the PHLX semiconductor index still surged 4.6% for a second straight gain.
• Six of 11 S&P 500 sectors rose, with information technology leading at roughly 1.9%.

Why Did the Nasdaq Composite Outperform on Thursday?

The tech-heavy Nasdaq composite led the session because semiconductor and AI infrastructure stocks snapped back after recent weakness. The Philadelphia SE Semiconductor Index jumped 4.6%, its second consecutive positive day.

Micron Technology was the standout. Shares climbed after the company said it would invest more than $250 billion domestically through 2035 to meet surging demand for memory chips powering artificial intelligence. Applied Materials and Sandisk also posted sharp gains, spreading the rally beyond mega-cap names like Nvidia.

That rotation back into chips helped offset pressure elsewhere in tech. Some software names lagged amid analyst downgrades, but the hardware trade dominated sentiment heading into second-quarter earnings season.

How Did Oil Prices Affect the Market Rally?

Oil's pullback gave equities room to rise. Brent crude settled down 2.2% at $76.30 per barrel, while U.S. crude fell 2.0% to $72.08, reversing much of Wednesday's jump tied to Middle East conflict.

Lower energy costs matter because investors worry that sustained oil spikes could feed inflation and complicate Federal Reserve policy. Tehran said it struck U.S. military targets in Kuwait, Qatar, and Bahrain following American strikes on Iran, keeping the Strait of Hormuz risk on traders' radars.

According to Reuters, Ross Mayfield of Baird called it "still very much an AI bull market," but noted broader gains depend on oil prices and interest rates staying anchored amid the Middle East flare-up.

What Else Moved Markets Beyond Chip Stocks?

The S&P 500 closed up 0.81% at 7,543.66 and the Dow Jones Industrial Average added 0.27% to finish at 52,487.41. Financials also gained about 1.1%, while energy lagged as crude cooled.

Meta Platforms rose after reports that the company plans to manufacture its own AI chips starting in September, part of a broader push to control the hardware behind large-scale AI workloads. Stable weekly jobless claims offered another modest tailwind as earnings season kicked off.

For more on how AI hardware spending is reshaping markets, see our Future Tech & AI Wonders coverage. Analysts expect technology firms to drive aggregate S&P 500 profit growth this quarter, raising the bar for companies tied to the AI buildout.

Can the Chip Rally Hold With Geopolitical Risk Still Elevated?

Thursday's gains showed investors still treat AI semiconductors as a core bet, but the setup remains fragile. AI-related stocks have swung sharply in 2026 as traders debate whether valuations overshot fundamentals and whether massive chip investments will pay off.

Micron's multibillion-dollar U.S. expansion underscores how real the spending boom has become, yet conflict in the Middle East could quickly revive oil volatility. Earnings reports over the coming weeks will test whether revenue growth justifies current prices.

Markets recovered Wednesday's losses on July 9, but the balance between chip momentum and geopolitical headlines will likely define the next leg for the Nasdaq composite and the broader AI trade.