The stock market today closed firmly higher on Thursday, with the Nasdaq Composite leading the rally as investors piled into artificial intelligence stocks, semiconductor shares, and select growth names. While geopolitical tensions between the U.S. and Iran remained in focus, markets found support as oil and natural gas prices pulled back sharply, easing concerns about a broader inflation shock.
The Nasdaq gained 1.3% to close at 26,206, continuing its strong 2026 run and finishing just 3.6% below its all-time high of 27,190. The tech-heavy index is now up 12.7% year to date, underlining the market’s ongoing appetite for AI stocks, chipmakers, and large-cap technology leaders.
Meanwhile, the Russell 2000 jumped 1.2%, outperforming the Dow Jones Industrial Average and the broader NYSE Composite, as investors rotated back into growth-oriented names after recent weakness.
Nasdaq Leads Market Rally as Chip and AI Stocks Take Charge
The biggest theme in the market was clear: semiconductor and AI-related stocks were back in favor.
The VanEck Semiconductor ETF (SMH) rose 2.5%, closing above its rising 50-day moving average for the second straight session — a bullish sign for the chip sector. Investors aggressively bought into names tied to memory chips, AI data centers, custom semiconductors, and enterprise infrastructure.
Among the top performers:
- Micron Technology (MU) jumped sharply as memory-chip stocks rebounded.
- Sandisk (SNDK) rallied strongly and moved back toward its 50-day line.
- Arm Holdings (ARM) surged nearly 11%, showing renewed momentum after battling resistance near its 50-day average.
- Applied Materials (AMAT) climbed close to 10% in early trade.
- Broadcom (AVGO) also advanced, continuing to build a new bullish base.
This renewed strength in semiconductor stocks shows that investor confidence in the AI trade remains intact, especially as demand for data center chips, memory products, and custom AI infrastructure continues to grow.
SpaceX Stock Rebounds After Three Straight Losing Sessions
One of the most closely watched names in the market was Space Exploration Technologies (SPCX), widely referred to as SpaceX in trading circles. The stock rebounded 3% on Thursday, ending a three-day losing streak and hitting an intraday high of 153.49.
Although the stock remains well below its high of 225.64, Thursday’s bounce was a welcome sign for bulls. Since its Nasdaq debut at $135 per share on June 12, the stock is still up about 13%, despite recent volatility.
Why Investors Are Watching SpaceX Closely
SpaceX remains one of the market’s most intriguing growth stories because of its exposure to both space technology and satellite internet services.
According to analyst estimates cited in the original market coverage, the company is expected to post $6.9 billion in second-quarter sales. Full-year revenue is projected to jump 110% to $39.2 billion, although the company is still expected to report a net loss of 38 cents per share for the year.
At the center of the business is Starlink, the company’s satellite-based internet service, which is currently its biggest revenue driver. Investors are betting that if Starlink continues to scale globally, it could become a major long-term growth engine.
Even after Thursday’s rebound, SPCX remained down 6% for the week, showing that the stock is still in a volatile post-IPO phase.
IBD 50 Stocks Show Strong Momentum in Semiconductors and AI Infrastructure
Within growth-stock leadership groups, several IBD 50 stocks posted standout gains, especially in the semiconductor equipment and AI infrastructure space.
ASML Extends Strength
ASML climbed more than 3%, reclaiming its key 21-day exponential moving average. The stock rose as high as 1,858.73, extending gains from a cup-with-handle breakout at 1,531.98.
ASML remains one of the most important companies in the global chip supply chain because it makes the advanced EUV lithography systems used to manufacture cutting-edge semiconductors. As AI demand pushes chipmakers to expand production, ASML continues to be viewed as a critical long-term winner.
Astera Labs and Ouster Rebound
Other strong movers included:
- Astera Labs (ALAB), which surged nearly 9%
- Ouster (OUST), up around 9%
- Lam Research (LRCX)
- Guardant Health (GH)
Astera Labs remains a key AI infrastructure name because of its interconnect solutions for artificial intelligence data centers. After briefly dipping below its 21-day line earlier in the week, the stock snapped back strongly, a sign that institutional demand may still be intact.
Ouster also bounced back after a brutal five-day slide, as traders stepped back into speculative growth names tied to self-driving technology and lidar systems.
Top Industry Groups: Telecom Equipment, Semiconductors, Hardware Stocks Lead
Looking across the market, some of the strongest industry groups on Thursday included:
- Telecom equipment stocks
- Semiconductor equipment companies
- Computer hardware and peripherals
- Electronic parts and miscellaneous electronics makers
These sectors posted gains of 4% or more, showing broad strength beyond just a handful of mega-cap names.
The move suggests that the rally was not limited to one or two stocks — instead, it reflected a wider appetite for technology, AI, and growth sectors.
Oil and Natural Gas Drop, Giving Stocks More Breathing Room
Another major reason stocks rallied was the sharp pullback in energy prices.
- Crude oil futures fell nearly 2% to around $72.25 a barrel
- Natural gas futures tumbled almost 6% to roughly $3.03 per million BTUs
This decline in energy prices came despite ongoing tensions involving the United States and Iran. Earlier market fears centered around the possibility of a supply shock or disruption to shipping routes near the Strait of Hormuz, one of the world’s most critical oil transit points.
However, when oil prices moved lower instead of higher, investors took it as a relief signal. Lower energy prices can reduce pressure on inflation, which in turn supports hopes that interest rates will not rise further.
That helped growth stocks, especially in the Nasdaq, which tend to perform better when inflation fears cool.
Mixed Performance Among Megacap Tech Stocks
While the Nasdaq had a strong session overall, performance among the biggest tech names was mixed.
Winners
- Dell Technologies (DELL) surged more than 5% and hit a three-week high.
- Nvidia (NVDA) posted modest gains before the open.
- Broadcom (AVGO) also moved higher.
Dell has been one of the stronger hardware names in recent months, benefiting from demand related to AI servers, enterprise computing, and data center equipment.
Losers
- Alphabet (GOOGL) fell more than 2%
- Meta Platforms (META) dropped over 3%
- Workday (WDAY) also sold off sharply
- Microsoft (MSFT) lost ground amid renewed weakness in software stocks
- Salesforce (CRM) tumbled around 5%
This split shows that money is still flowing selectively within the tech sector. Right now, investors appear to favor AI infrastructure, semiconductors, and hardware-related names over software stocks.
Other Stocks in Focus: PepsiCo, Costco, Alnylam and Caterpillar
Thursday’s session also featured several notable moves outside the AI and chip space.
PepsiCo Slips After Mixed Earnings
PepsiCo (PEP) fell nearly 2% in premarket trading after reporting mixed quarterly results. While the company topped revenue expectations, it missed earnings estimates and warned that its North America business was softer than expected.
Costco Drops to a Multi-Month Low
Costco Wholesale (COST) struggled badly, falling close to 4% and hitting a near six-month low. The weakness stood in sharp contrast to the strength seen in technology and chip stocks.
Alnylam and Caterpillar Gain
- Alnylam Pharmaceuticals (ALNY) soared nearly 15%
- Caterpillar (CAT) rose more than 3%
These moves show that while AI and semiconductor stocks dominated the headlines, stock-specific momentum remained strong in select healthcare and industrial names as well.
Jobless Claims Hold Steady, Supporting Market Sentiment
On the economic front, the Labor Department reported that initial jobless claims held steady at 215,000, below expectations for a rise to 219,000.
That data helped reinforce the view that the labor market remains relatively stable. Investors are still balancing two competing narratives:
- A slowing economy could eventually pressure corporate earnings.
- A stable labor market may reduce the urgency for aggressive Federal Reserve action.
Markets also looked ahead to existing home sales data, which was expected to come in near 4.2 million for June.
What Drove the Stock Market Today?
To sum up, Thursday’s market rally was driven by a combination of factors:
1. Strength in AI and Semiconductor Stocks
Investors aggressively bought chipmakers, memory stocks, and AI infrastructure names such as Micron, Sandisk, Arm, and Applied Materials.
2. Falling Energy Prices
The drop in crude oil and natural gas helped ease inflation fears and gave growth stocks room to run.
3. Stable Economic Data
Jobless claims came in better than expected, helping calm fears of a sudden economic deterioration.
4. Selective Buying in Growth Stocks
Despite weakness in software and some megacap names, investors continued to favor high-growth sectors, particularly those tied to artificial intelligence, data centers, and semiconductors.
Stock Market Outlook: Can Nasdaq Retest Its All-Time High?
With the Nasdaq now sitting just 3.6% below its record high, investors will be watching closely to see whether this rebound has enough strength to continue.
The next major test for the market will likely come from:
- upcoming corporate earnings
- inflation and labor market data
- further developments in the U.S.-Iran conflict
- continued momentum in AI and chip stocks
If semiconductor leaders and AI infrastructure plays keep attracting institutional buying, the Nasdaq could remain the market’s leadership index in the weeks ahead.
For now, Thursday’s session was another reminder that even in a volatile macro environment, Wall Street still rewards strong growth stories — especially those tied to AI, semiconductors, and next-generation technology.