(July 10) : A resurgence in giant chipmakers powered a rebound on Wall Street, with stocks also rising amid a decline in oil prices as traders looked past fresh hostilities between the US and Iran.
The Nasdaq 100 added 1.7%. A gauge of semiconductor firms climbed 4.5%. Micron Technology Inc. plans to increase spending on new plants in the US to $250 billion to help meet demand fueled by the artificial-intelligence boom. SK Hynix Inc.’s US listing was said to be more than seven times oversubscribed, underscoring strong appetite for the South Korean chipmaker.
A wild ride for tech stocks in recent weeks has left investors looking for fresh validation of the AI trade. While semiconductor shares just wrapped up their best quarter on record, there have been growing doubts over rising competition, potential overcapacity and the payoff from massive investments.
Those questions have intensified at a time when geopolitical risks resurface, with the US and Iran trading airstrikes. But markets treated the attacks as another round of managed escalation based on the premise that the economy can absorb the shock, noted Elias Haddad at Brown Brothers Harriman & Co.
“Investors are much more focused on the upcoming earnings season than they are on the geopolitical front,” said Matt Maley at Miller Tabak.
Amid ongoing debate about the economy, inflation, rates and geopolitics, the market’s direction over the next month may come down to earnings, according to Anthony Saglimbene at Ameriprise.
See also: Oil holds gain as traders weigh hormuz flows after ship attack
“Companies will need to do more than just beat estimates for their stock prices to keep climbing,” he said. “They will need to show that margins are holding at high levels, that guidance remains firm and probably even better than analysts currently project, and that tech-led profit growth still has enough breadth to support the market’s valuation.”
At Edward Jones, Brock Weimer says earnings growth is expected to remain robust in 2026, and there are limited signs that companies are meaningfully slowing AI-related spending.
AI is likely to remain a key driver of markets during the second half of 2026, but the narrative is evolving, according to Jeff Buchbinder at LPL Financial. This transition may create a more selective environment, he noted.
See also: Asia stocks set for choppy open on tech volatility
“Recent volatility in semiconductor stocks suggests this transition is underway,” Buchbinder said. “Investors should focus less on who is spending the most and more on who is generating measurable returns from those investments.”
uploaded by Isabelle Francis
