Chip Stocks Carry Markets Higher as Iran Tensions Simmer — July 9, 2026

The U.S. conducted another round of airstrikes on Iran overnight — 90 additional targets, with the fragile ceasefire still very much in question. Wall Street noticed, then moved on. What actually moved Thursday’s session was a powerful surge in chip stocks that pulled all four major indices higher.

Semiconductors Take the Wheel

Memory and AI hardware names were the clear leaders of the day. SanDisk jumped 7.6%, Marvell Technology gained 5%, and Micron climbed 4.5%. The moves reflected a broader re-rating of companies tied to AI infrastructure, after several weeks of selling had pushed valuations further from their moving averages than many traders felt comfortable with.

Why it matters for you: Semiconductor stocks have a way of setting the mood for the entire tech sector. When chips run, growth portfolios tend to follow. A single day doesn’t change the trend, but it’s worth watching whether this bounce has legs heading into next week.

Index Snapshot: All Four Green

The Nasdaq led with a gain of 1.3% — about 336 points — to close at 26,206.89. The S&P 500 rose 0.81% to 7,543.64. The Dow Jones Industrial Average recovered from Tuesday’s drop of more than 1%, adding 0.27% (roughly 140 points) to 52,487.41. The Russell 2000 small-cap index also joined the rally, up 1.22% to 2,992.54.

For the week, the Nasdaq is up about 1.4% and the S&P 500 has gained approximately 0.8%. The Dow is the outlier, still down around 0.8% on the week heading into Friday.

Why it matters for you: A broad-based advance — where large caps, small caps, tech, and blue chips all rise together — tends to be healthier than a narrowly led one. Thursday’s action fit that description.

Mag 7 Mostly Participated

Five of the seven so-called “Magnificent 7” mega-cap tech stocks finished in positive territory. Meta gained 4.7% and Tesla rose 3.2%, standing out as the session’s big movers among that cohort. Not every name in the group participated equally, but the broad participation added weight to the day’s gains.

Why it matters for you: The Mag 7 collectively carry enormous weight in index funds, particularly S&P 500 and Nasdaq trackers. When several move together in one direction, they drag passively managed funds along for the ride — for better or worse.

Earnings Season Is Around the Corner

The official start of Q2 earnings season is roughly a week away, when the big banks begin reporting. But Delta Air Lines steps up to the plate on Friday as an early test case. The airline stock has climbed nearly 30% so far in 2026, and investors will be watching to see whether the company’s results justify that run.

Analysts tracking the S&P 500 broadly expect second-quarter earnings growth of around 24% compared to the same period last year, alongside revenue growth of about 11.3%. Those are high expectations — and the market’s reaction to early reporters often sets the tone for the rest of the season.

Why it matters for you: Strong expectations are a double-edged sword. Companies that meet the bar may see muted reactions; those that miss could get punished quickly. Keep an eye on how the first few reporters are received, not just whether the numbers are technically good.

Geopolitics: Background Noise for Now

Despite fresh U.S. military action targeting Iran — the latest in an ongoing campaign — markets treated the news as background noise on Thursday. That pattern has repeated itself several times in recent weeks: a sharp war-driven swing one day followed by a rebound the next. How long that dynamic holds depends heavily on whether the conflict escalates in a way that disrupts oil supply or triggers wider regional instability.

Why it matters for you: Markets are not predicting an outcome — they’re pricing in what’s known today. A ceasefire collapse or a significant supply shock could quickly shift the calculus.

What to Watch

• Delta Air Lines (DAL) reports earnings Friday morning — an early signal for Q2 earnings season
• SK Hynix, the South Korean memory chip maker, is scheduled to debut on the Nasdaq on Friday
• The Dow needs a positive Friday close to preserve its recent weekly winning streak
• Watch for any ceasefire developments with Iran that could move energy and defense-related stocks
• Big bank earnings begin next week, kicking off the official Q2 reporting season

Bottom Line

Thursday was a chip-stock day. The Nasdaq led, the Russell followed, and geopolitical headlines mostly got set aside. The bigger story shaping up is the earnings season that begins in earnest next week — and whether corporate results can live up to the market’s lofty expectations heading into summer.

This article is for general information and education only. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Markets carry risk — do your own research or consult a licensed advisor before investing. MoneyPilotAI may earn affiliate commissions from tools we mention; see our affiliate disclosure.