Dow rises 139 points as chip stocks rally despite renewed US-Iran strikes

• Micron Technology climbed 4.5% after announcing plans to invest $250 billion in US memory chip production through 2035 to meet AI demand
• Meta shares rose following Reuters reports the company will begin manufacturing its in-house AI chip in September, boosting Applied Materials and SanDisk
• S&P 500 companies are expected to report 24% average year-over-year earnings growth for Q2, with technology firms driving a significant portion of the increase

Market Summary: Dow Rises on Chip Rally Amid Geopolitical Tensions

Market Performance:

U.S. equities closed higher Thursday despite renewed U.S.-Iran military strikes. The Dow Jones gained 139.02 points (+0.27%) to 52,487.41, while the Nasdaq jumped 1.30% to 26,206.89 and the S&P 500 rose 0.81% to 7,543.65.

Semiconductor Sector Leadership:

Chip stocks drove market gains, with the Philadelphia Semiconductor Index extending its rally. Micron Technology (MU) surged 4.5% after announcing plans to invest $250+ billion through 2035 in U.S. memory chip production to meet AI-driven demand. SanDisk climbed 7.6%, while Applied Materials and other semiconductor names posted strong gains. Meta's stock advanced following Reuters reports that the company will begin manufacturing its in-house AI chip in September.

Earnings Outlook:

Second-quarter earnings season begins with analysts projecting 24% average year-over-year earnings growth for S&P 500 companies, according to LSEG I/B/E/S. Technology companies are expected to contribute significantly to this growth.

Geopolitical Developments:

Markets navigated renewed U.S.-Iran tensions after strikes on commercial shipping near the Strait of Hormuz. However, crude oil prices declined following President Trump's indication that Iran sought negotiations, with Qatar and Pakistan reportedly facilitating talks.

Monetary Policy:

Federal Reserve June meeting minutes revealed some officials considered raising rates before ultimately holding steady. Initial jobless claims data showed labor market stability. Traders are pricing in a likely 25-basis-point rate hike by December.

Global Markets:

European Stoxx 600 rose 0.8%. Asian markets were mixed: Japan's Nikkei +1.4%, South Korea's Kospi +0.62%, China's CSI 300 +2.5%, while Hong Kong's Hang Seng fell 0.5%.