Nasdaq Composite Jumps 1.3% as Chip Rally Offsets Iran Tensions on July 9

The Nasdaq Composite surged 1.3% to 26,206.89 on July 9, driven by a powerful rally in semiconductor stocks despite renewed U.S.-Iran military strikes. Micron Technology led the advance with a 4.5% jump after announcing plans to invest more than $250 billion in the United States through 2035 to expand memory chip production. Oil prices fell as geopolitical tensions eased, supporting investor appetite for growth stocks tied to artificial intelligence.

Semiconductor stocks power the market higher

The Philadelphia Semiconductor Index surged 3.06% as investors bet on sustained AI demand. Micron Technology jumped 4.5% after announcing $250 billion in U.S. investment through 2035. Applied Materials climbed 3.2% and SanDisk rose 7.6%. Meta Platforms also gained after Reuters reported the company plans to manufacture its own AI chips starting in September.

Oil prices ease as Iran tensions cool

WTI crude fell to the low $72 per barrel range, down about 2% from the prior day, after President Trump said Iran was eager to negotiate. U.S. Central Command completed air strikes on Iran on July 8, targeting military sites to reduce Tehran’s ability to attack shipping in the Strait of Hormuz. The decline in oil prices reduced inflation concerns and allowed long-term U.S. interest rates to fall, supporting equity valuations.

Broader market gains despite geopolitical risks

The S&P 500 rose 0.81% to 7,543.65 and the Dow Jones Industrial Average added 139.02 points, or 0.27%, to 52,487.41. Analysts noted the market reaction to the escalation was muted, suggesting investors are focused on AI fundamentals over geopolitical noise. The VanEck Semiconductor ETF climbed 2.5%, reflecting strong conviction in the chip sector.

Meyka data shows mixed technicals for Nasdaq

Meyka grades the Nasdaq Composite a C+ with a 12-month forecast of $26,767, implying modest upside from current levels. The RSI sits at 53.39, suggesting neither overbought nor oversold conditions. However, the MACD histogram at 9.22 shows positive momentum, while the ADX at 23.85 indicates a weakening trend. For Micron, Meyka assigns an A grade with a $927 monthly forecast, well above the current $979 price, reflecting strong fundamentals despite near-term volatility.

Final Thoughts

The Nasdaq’s 1.3% surge reflects sustained AI optimism offsetting geopolitical risks. With Meyka grading Micron a strong buy and the chip sector benefiting from record memory demand, the data supports continued strength in semiconductor stocks if oil prices and interest rates remain anchored.

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