Nasdaq 100: Semiconductor Stocks Rally in Pre-Market as Fed Uncertainty Lingers

• Chip stocks led gains with Micron up 3.4% and the VanEck Semiconductor ETF rising 1.8% in premarket, showing sustained momentum beyond a single-day event
• Fed policymakers unanimously voted to hold rates at 3.5%-3.75% but internal divisions emerged, with next week's CPI data expected to break the tie on future rate decisions
• Geopolitical volatility from U.S.-Iran tensions caused oil price swings, with Wells Fargo maintaining S&P 500 year-end target of 7,800-8,000 if Gulf tensions don't escalate further

Market Summary: Nasdaq Rises on Chip Rally Amid Fed Uncertainty

Key Market Movements

Thursday, July 9, 2026 (as of 11:14 GMT)

• Nasdaq futures climbed 151.50 points (+0.51%) to 29,620.00
• S&P 500 futures gained 9.25 points (+0.12%) to 7,538.00
• Dow futures fell 50 points (-0.10%) to 52,574.00
• VanEck Semiconductor ETF (SMH) up 1.8% in premarket

Primary Drivers

Semiconductor Sector Leadership: Chip stocks extended their rally with Micron surging 3.4% and Sandisk advancing 2.4%, providing continued support for Nasdaq strength. China's CSI 300 rallied 2.5% overnight, reinforcing global semiconductor momentum.

Fed Policy Uncertainty: Wednesday's FOMC minutes revealed deep divisions among policymakers despite a unanimous vote to hold rates at 3.5%-3.75%. Hawks favor rate hikes if inflation persists, while doves advocate patience. Next week's CPI report is now positioned as the critical data point that will guide Fed direction.

Geopolitical Volatility: U.S. strikes on Iranian military targets initially drove oil prices higher on supply concerns around the Strait of Hormuz. However, President Trump's subsequent comments about potential negotiations reversed gains, creating headline-driven whipsaw action. Wells Fargo warns that low global reserves mean further escalation would reinforce higher oil risk premiums.

Corporate Earnings: PepsiCo's Q2 results highlighted consumer pressure, with CEO Ramon Laguarta noting "tightening consumer budgets due to rising inflationary pressures" and weakening North American demand.

Market Outlook

Wells Fargo maintains an S&P 500 year-end target of 7,800-8,000, citing strong equity earnings momentum and AI sector strength, contingent on Gulf situation stability.