Dow rises 110 points as chip stocks power Wall Street to strong first-half finish

• The VanEck Semiconductor ETF (SMH) rose 3% on the day and gained over 81% in the first half of 2026, reflecting continued investor optimism around AI infrastructure spending.
• The second quarter showed exceptional strength with the S&P 500 up 14% and the Nasdaq surging 20%, marking the largest quarterly gains since Q2 2020 for both indices.
• Traders are pricing in at least one Federal Reserve rate hike before the end of 2026, while strategists expect market leadership to broaden beyond tech into cyclical sectors like energy and financials.

Market Summary: Wall Street Closes Strong First Half with Chip Rally

Key Market Performance

US equities delivered robust gains on June 30, 2026, closing a historically strong first half. The Dow Jones rose 116.17 points (+0.22%) to 52,298.91, while the S&P 500 gained 0.75% to 7,498.38 and the Nasdaq Composite surged 1.45% to 26,194.76.

First-Half and Q2 Results

The first half of 2026 marked exceptional performance across major indices:

• Dow: +8% (strongest since 2021)
• S&P 500: +8%
• Nasdaq: +11%
• Russell 2000: +21% (best start since 1991)

Second quarter results were even stronger, with the S&P 500 up ~14% and Nasdaq surging ~20%—the largest quarterly gains since Q2 2020.

Semiconductor Leadership

Technology, particularly semiconductors, powered the rally. Intel and other chip stocks jumped approximately 7%, while the VanEck Semiconductor ETF (SMH) rose 3% on the day and posted an extraordinary 81% gain for the half. This reflects sustained investor enthusiasm for AI infrastructure spending.

Market Outlook

Despite navigating volatility from Iran conflict concerns and AI spending sustainability questions, sentiment improved through Q2. Bank of America strategists anticipate leadership broadening beyond technology into cyclical sectors like energy and financials in the second half.

Investors now await second-quarter earnings results while monitoring Federal Reserve policy, with traders pricing at least one rate hike before year-end 2026. The combination of strong earnings momentum and easing geopolitical tensions continues supporting equity markets.