Phoenix 24
Chipmakers drive gains across major US indexes.
NEW YORK, UNITED STATES — July 2026. Wall Street closed higher on Monday as renewed demand for technology shares lifted the Nasdaq Composite and pushed the S&P 500 deeper into positive territory for the year. The S&P 500 gained 55.10 points, or 0.74 percent, to finish at 7,538.34. The Nasdaq advanced 288.49 points, equivalent to 1.12 percent, and closed at 26,121.16. The Dow Jones Industrial Average posted a more moderate increase of 159.68 points, or 0.29 percent, ending the session at 53,053.59.
The latest results extended the strong performance recorded by major US equity markets during 2026. The S&P 500 has gained approximately 10 percent since the beginning of the year, while the Nasdaq has advanced close to 12 percent. Investors returned to technology companies after two consecutive sessions of weakness among semiconductor stocks. The buying suggested that enthusiasm surrounding artificial intelligence infrastructure and advanced computing remains an important source of support for the market.
Broadcom emerged as one of the principal drivers of the technology rebound after announcing an expanded agreement with Apple. The companies extended their collaboration through 2031 to develop and supply a range of customized chips. The announcement reinforced expectations that demand for specialized processors will continue increasing as major technology corporations expand artificial intelligence, cloud computing and connected-device operations. Semiconductor shares benefited from the prospect of long-term contracts and sustained investment across the industry.
Interest in artificial intelligence chips also supported attention surrounding South Korean manufacturer SK Hynix and its expected debut on the US stock market. Investors increasingly view companies connected to memory, data centers and high-performance processors as potential leaders during the upcoming corporate earnings season. Expectations are building that artificial intelligence spending will contribute significantly to second-quarter revenue and profit growth. The technology sector’s strength helped offset weakness in several individual companies and more cautious trading elsewhere in the market.
Microsoft shares moved lower after the company announced plans to eliminate approximately 4,800 positions, representing around 2.1 percent of its global workforce. The reductions form part of a broader restructuring affecting its commercial operations and Xbox gaming division. Investors assessed the layoffs alongside Microsoft’s substantial spending on artificial intelligence infrastructure, automation and cloud services. The decline illustrated how workforce reductions do not always produce an immediate positive market reaction when they raise concerns about growth, costs or the performance of specific business divisions.
Economic data provided a relatively stable backdrop for the session. The Institute for Supply Management reported that its nonmanufacturing purchasing managers index declined slightly to 54.0 in June, matching market expectations. A reading above 50 indicates expansion, suggesting that the US services sector continued growing despite persistent uncertainty surrounding inflation, interest rates and consumer demand. The result gave investors few reasons to substantially change their expectations for the broader economy.
Oil prices remained almost unchanged after OPEC+ approved another increase in production quotas. Saudi Arabia, Russia and five other members agreed to add 188,000 barrels per day beginning in August, continuing the gradual reversal of voluntary cuts introduced in 2023. Brent crude declined 0.18 percent to $71.99 per barrel, while West Texas Intermediate fell 0.20 percent to $68.55. Analysts said the production decision had been widely anticipated, limiting its immediate impact on energy markets.
The oil market is also responding to the gradual reopening of the Strait of Hormuz and declining tensions in the Middle East. Commercial vessel traffic through the strategic maritime corridor has increased, although activity remains below the levels recorded before the conflict. Crude prices, which exceeded $100 during the most intense phase of the regional confrontation, have returned to prewar levels. Concerns about excessive supply continue to pressure the outlook, while attacks against Russian energy infrastructure could still generate short-term price increases.
Investors are now preparing for a new corporate earnings cycle that will provide clearer evidence about economic activity and business profitability. Delta Air Lines and PepsiCo are among the first major US companies scheduled to report second-quarter results. Their financial statements could offer important information about travel demand, consumer spending, operating costs and pricing power. Technology companies will later face pressure to demonstrate that the extraordinary investment surrounding artificial intelligence is producing measurable commercial returns.
Monday’s rally showed that technology remains Wall Street’s strongest engine, even as investors confront changing energy markets, corporate restructuring and uncertain economic conditions. The Nasdaq’s leadership reflected continuing confidence in semiconductor and artificial intelligence companies, while the smaller Dow advance revealed a more selective market. Upcoming earnings reports will determine whether the optimism can extend beyond the technology sector. For now, investors remain willing to support growth companies capable of connecting innovation with credible long-term revenue.
Technology continues to shape the direction of global markets.