Market Overview

On Thursday, U.S. equity markets posted gains as the S&P 500 rose 0.6% to 7,530.88 points, the Nasdaq Composite added 0.8% to 26,087.92 points, and the Dow Jones Industrial Average climbed 0.4% to 52,545.92 points. The rally was anchored by a resurgence in semiconductor equities, which helped offset heightened geopolitical tension.

Semiconductor Momentum

After a four‑day decline of nearly 14%, the Philadelphia Semiconductor Index rebounded more than 5% on Wednesday and Thursday. Leading the upside were Arm Ltd, which surged 10.92%, SanDisk, up 9.09%, and Lam Research, up 7.25%. Other notable gainers included Micron Technology (+7.16%) and Intel’s memory unit (noted as IONS) plunging 23.69% earlier in the session.

Corporate Developments

  • Meta Platforms disclosed an internal memo indicating that it will commence production of a custom AI chip in September and intends to double its computing capacity to 14 GW by the following year.
  • SK Hynix Inc, South Korea’s second‑largest memory maker, announced a U.S. listing priced at $149 per share, representing a 3.1% premium to its Korean‑listed closing price. The offering is reported to be more than seven times oversubscribed and is expected to raise north of $26 billion, eclipsing the $25.6 billion Saudi Aramco IPO of 2019 and trailing only SpaceX’s $85.7 billion offering.
  • Micron Technology raised its planned U.S. investment to exceed $250 billion through 2035 and pledged up to $3 billion to bolster the domestic semiconductor supply chain. Micron’s share price closed up 6.5%.
  • Starbucks Corp is developing in‑house AI‑driven software that could replace third‑party applications from Microsoft and IBM, according to an internal presentation. The iShares Expanded Tech‑Software Sector ETF rose 1.2% following the news.
  • PepsiCo Inc reported second‑quarter results that beat revenue expectations, though adjusted earnings fell slightly short of analyst estimates. The stock slipped more than 3% in after‑hours trading.
  • AstraZeneca plc and its partner Ionis Pharmaceuticals announced that their Wainua drug failed in a late‑stage trial for a rare heart disease, sending AstraZeneca shares down 5.1% and Ionis shares down nearly 24%.

Geopolitical and Commodity Impact

President Donald Trump told reporters aboard Air Force One that Iran had contacted Washington expressing a desire to negotiate a deal, though he expressed doubt about Iran’s willingness to honor any agreement. The comments coincided with a roughly 2% decline in crude oil prices, after Brent futures had surged more than 5% the previous day and briefly breached $80 per barrel—the highest level since June 22.

Analyst Commentary

Oliver Pursche, senior vice‑president at Wealthspire Advisors, noted that investors remain focused on AI‑related spending as the second‑quarter earnings season approaches, but warned that renewed inflationary pressures from rising oil prices, a more cautious consumer outlook, and lingering labor‑market fragility could eventually reshape growth expectations. He described the current market as rational, driven by AI‑related spending that has so far offset geopolitical headwinds.

Additional Market Moves

Other notable movers included Starbucks (+3.25%), United Microelectronics (MU) up 7.16%, and ARM Holdings (+10.92%). Conversely, IBM fell 2.78% and PepsiCo declined over 3% after earnings.