NEW YORK, July 9, 2026, 12:08 EDT
- Nasdaq was out front around midday with a jump in chip-equipment and memory stocks. NVIDIA and Microsoft both traded down.
- Micron’s larger U.S. investment plan turned traders’ attention to supply-chain names in AI, not just the main AI platform players.
- Oil, the Fed, and tight equity funding are still the main risks for the rally.
U.S. stocks gained late Thursday morning, with the Nasdaq ahead of the Dow. Buyers picked up chip-equipment and memory stocks, while top AI names traded weaker. Invesco QQQ Trust NASDAQ:QQQ climbed 1.5%. SPDR S&P 500 ETF Trust NYSEARCA:SPY was up 0.6%, and SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) rose 0.4%. NVIDIA NASDAQ:NVDA dropped 1.0% and Microsoft NASDAQ:MSFT lost 0.8%.
The move stood out because it wasn’t just big tech leading. The Philadelphia SE Semiconductor index jumped 5% early, according to Reuters, with Applied Materials NASDAQ:AMAT and Micron Technology NASDAQ:MU out front after Micron announced more U.S. spending linked to AI. More stocks rose than fell on both the NYSE and Nasdaq, suggesting the buying spread beyond just the key megacaps.
| Market proxy / stock | Late-morning move | What investors were buying or selling |
|---|---|---|
| Invesco QQQ Trust NASDAQ:QQQ | $722.00, +1.5% | Nasdaq-100 tracking, with strength in hardware AI names. |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $750.05, +0.6% | U.S. large-caps across sectors. |
| SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) | $524.61, +0.4% | Blue-chips, lagged behind Nasdaq. |
| Advanced Micro Devices NASDAQ:AMD | $555.15, +7.3% | Bought for AI chip exposure as alternative to NVIDIA. |
| Micron Technology NASDAQ:MU | $1,020.00, +7.5% | Bought for memory chips, key for AI demand. |
| Applied Materials NASDAQ:AMAT | $609.45, +6.8% | Chip equipment trade. |
| NVIDIA NASDAQ:NVDA | $201.98, -1.0% | Sold on rotation out of AI names and supplier risk. |
| PepsiCo NASDAQ:PEP | $137.67, -3.4% | Consumers dumped after warnings on costs, demand. |
Micron said it now plans to spend over $250 billion in the U.S. through 2035 and wants to make 40% of its DRAM chips domestically. DRAM, a fast memory component for servers and computers, is key for data centers. CEO Sanjay Mehrotra called data and memory “foundational to the modern economy” as the company hit a construction milestone at its Clay, New York fab, finishing more than a quarter ahead of schedule. Micron Technology
The trade shows investors are dividing up the AI sector. Meta Platforms NASDAQ:META plans to start making its own AI chip, called Iris, in September and wants to double its computing power to 14 gigawatts next year, according to a Reuters memo. The chip is designed to work alongside GPUs that Meta buys from NVIDIA and Advanced Micro Devices. Meta is collaborating with Broadcom NASDAQ:AVGO and Taiwan Semiconductor Manufacturing (TPE:2330) on the chip.
Michael Hewson, senior market analyst at iFOREX, said the S&P 500 and Nasdaq both logged “very strong first half” gains, but he cautioned that high revenue hopes mixed with renewed Middle East worries made for a “toxic combination.” On Thursday, the market picked its spots: investors stuck with suppliers with steady orders, but cut back on some platform stocks as spending climbed. Reuters
| Fresh data point | Latest reading | Market read |
|---|---|---|
| Initial jobless claims | 215,000, down 2,000 | Claims dip, labor market still steady, near-term recession talk dialed back. |
| Fed funds target range | 3.50%-3.75% | June minutes show some officials see rates higher by year-end; rate hike worries linger. |
| Brent crude | $77.91 a barrel, -0.1% | Oil faded a bit but still quick to move on U.S.-Iran and Hormuz news. |
| WTI crude | $73.14 a barrel, -0.5% | WTI down for the session, remains in the inflation mix. |
The macro backdrop stayed bumpy. Weekly U.S. jobless claims came in at 215,000, under the 218,000 forecast from economists polled by Reuters. Fed minutes for June showed the central bank kept rates on hold, dropped rate guidance, and some officials questioned if inflation might force even tighter policy. Jeffrey Roach, chief economist at LPL Financial, called the minutes “some ambiguity,” saying policy is closely linked to what happens in the Middle East. Reuters
Oil pulled back after Brent and WTI touched their highest since June 22 just a day before. Reuters said some war insurers told shippers to hold off on using the Strait of Hormuz following new attacks. “Very nervous market,” Saxo Bank’s Ole Hansen said. Aneeka Gupta at WisdomTree expects Brent likely stays between $75 and $85 this month. Reuters
Consumer stocks were less upbeat about the economy. PepsiCo flagged higher commodity costs ahead and reported a 2% drop in North American food sales, even though the company cut prices on brands like Lay’s and Doritos. EMarketer’s Suzy Davidkhanian said the issue was not building Pepsi’s brands, but “keeping them relevant.” Reuters
The main trouble could be deeper in market plumbing, not earnings. Equity repo — borrowing cash short term with stocks as collateral — is still tight after June’s funding spike, Reuters said. Morgan Stanley’s Martin Tobias thinks the risk of another spike hasn’t gone away. Independent trader Kevin Muir said leverage remains high and the market’s tilted for more gains; a jump in oil or a hawkish Fed could flip that into a fast selloff.
Right now, AI hardware stocks look like the safest bet for investors avoiding bigger macro concerns. The real focus this afternoon is on Micron, AMD, and Applied Materials and if they can keep lifting the Nasdaq with NVIDIA, Microsoft, and consumer stocks still lagging.
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