Memory chip makers Sandisk and Micron Technology surged, while Broadcom and Meta Platforms also gained.
Strong forecasts in recent weeks from companies including Microsoft and Amazon have reduced investors’ concerns about massive spending on AI data centers.
“The AI earnings-driven tech boom continues,” said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York. “It’s an earnings boom, not a bubble.”
According to preliminary data, the S&P 500 gained 51.23 points, or 0.66%, to end at 7,799.73 points, while the Nasdaq Composite gained 215.02 points, or 0.81%, to 26,803.51. The Dow Jones Industrial Average rose 70.91 points, or 0.13%, to 53,833.87.
The S&P 500 is up about 14% in 2026, while the Nasdaq has gained about 15%.
Cisco Systems dropped after the networking equipment maker’s upbeat revenue forecast did not satisfy investors with high expectations. Iran and the United States remain at loggerheads over efforts to agree on a permanent end to the Iran war, according to a senior Iranian source, while traffic through the vital Strait of Hormuz remained severely curtailed. Fresh data showed U.S. producer prices were unchanged in July as goods prices fell and the cost of services increased marginally, while the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable jobs market.Traders are pricing in a 63% chance that the Fed will keep interest rates unchanged at its meeting next month, according to CME’s FedWatch tool.
Brent crude oil futures closed about 2% lower at $87.07 a barrel. Netflix climbed after billionaire investor Bill Ackman unveiled a new holding in the streaming company as part of Pershing Square’s biggest portfolio overhaul in years. Tapestry shares plunged after the Coach owner forecast muted annual revenue growth. Dell Technologies and HP both gained after quarterly results from China’s Lenovo beat expectations.
