Dow Hits Record as Chip Rebound Lifts US Stocks on AI Optimism
The tl;dr
US stocks climbed in the first session after the July 4 holiday, with the Dow Jones Industrial Average closing at a record 53,055.91 as a rebound in chip stocks revived optimism about the AI trade. The S&P 500 rose 0.72% to 7,537.43 and the tech-heavy Nasdaq Composite led with a 1.12% gain to 26,121.16, helped by stronger-than-expected sales from Nvidia supplier Foxconn and by megacap names Alphabet, Apple, Meta and Tesla. Investors now look to Samsung Electronics' results on Tuesday, where the chipmaker is expected to report a roughly 18-fold jump in profit.
Markets in this story
30-day · delayedKey points
- The Dow Jones Industrial Average rose 155.84 points, or 0.29%, to a record close of 53,055.91, after also setting an intraday record during the session.
- The S&P 500 added 0.72% to 7,537.43 and the Nasdaq Composite climbed 1.12% to 26,121.16, the strongest of the three main indexes.
- Semiconductor and big-tech shares led the advance, shaking off a recent dip, after Nvidia supplier Foxconn reported stronger-than-expected quarterly sales, a sign of sustained AI demand.
- Chipmakers including AMD and Micron were in focus ahead of Samsung Electronics' quarterly results on Tuesday, where the company is expected to post a roughly 18-fold year-on-year rise in profit.
- Gold rose 1.20% to about $4,175 an ounce, while oil was little changed after OPEC+ agreed to raise its output targets for August.
By the numbers
US stocks opened the second half of the year on a strong note. In the first session after the July 4 Independence Day holiday, the Dow Jones Industrial Average closed at a record 53,055.91, up 155.84 points or 0.29%, after touching an intraday high earlier in the day. The broader S&P 500 rose 0.72% to 7,537.43, while the Nasdaq Composite led the main indexes with a 1.12% gain to 26,121.16.
The rally was powered by a rebound in semiconductors and the largest technology stocks, which shook off a recent dip. The catalyst was a stronger-than-expected quarterly sales report from Foxconn, a key Nvidia supplier, which investors read as a sign that demand for AI hardware is holding up. Megacap names Alphabet, Apple, Meta and Tesla all advanced, while chipmakers such as AMD and Micron drew attention ahead of a busy week of results from Asia’s memory-chip giants.
Attention now turns to Samsung Electronics, which reports on Tuesday and is expected to post a roughly 18-fold jump in profit from a year earlier, with SK Hynix also in focus. A strong read would reinforce the AI-demand story that lifted chips today; a disappointment could test it. Elsewhere, gold rose 1.20% to about $4,175 an ounce, and oil was little changed after OPEC+ agreed to raise output targets for August, keeping supply, rather than demand, at the center of the energy story.
Because a small group of megacap technology and chip stocks now drives the direction of the main US indexes, their rebound to fresh records shows the AI trade regaining leadership after a wobble, and with Samsung and SK Hynix reporting this week, the read on AI demand could quickly ripple through to Asian markets and the rest of the global tech supply chain.
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