Chip Rally Lifts the Week

By: Gerry Sparrow

Stocks largely advanced over a V-shaped week as the AI trade, led by chip stocks, pushed the S&P 500 and Nasdaq averages higher amid renewed conflict.

The Standard & Poor’s 500 Index rose 1.23 percent, while the Nasdaq Composite Index advanced 1.74 percent. The Dow Jones Industrial Average declined 0.50 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 1.42 percent.1,2

Tech-Led Rise Past Geopolitical Concerns

Stocks rose to start the week, with the Dow hitting another record close and the Nasdaq climbing more than 1 percent as investors shook off valuation concerns that plagued AI stocks over the past few weeks.3

The Dow hit a new intraday high on Tuesday before its two-day slide, along with the S&P 500 and Nasdaq, through the week’s lows midday Wednesday. That said, the Nasdaq eked out a slight gain on Wednesday after chip stocks recovered.4,5

After hitting its midweek bottom, stocks climbed through the end of the week. Chip stocks led the rally, pushing higher amid continued Middle East conflict, even as reports emerged that mediators were trying to get the U.S. and Iran back to the negotiating table. A handful of big tech names led the broad market’s rise to finish the week strong, with the S&P 500 and Nasdaq each gaining more than 1 percent on Friday.6,7

Source: YCharts.com, July 11, 2026. Weekly performance is measured from Monday, July 6, to Friday, July 10. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.

A ‘Family Fight’, Vexed by Inflation

Minutes from the Fed’s June meeting were released on Wednesday and revealed a Fed divided and unsure of how to proceed without more inflation data.

Fed officials offered opposing arguments at the meeting about whether to raise or lower interest rates. Fed Chair Warsh called the debate a “family fight” and gave little forward guidance on where the next decision was leaning, adding they would continue to assess “incoming information” on inflation.8

This Week: Key Economic Data

Monday: Treasury Balance.

Tuesday: NFIB Small Business Optimism Index. Consumer Price Index (CPI). Fed Chair Kevin Warsh presents Monetary Policy Report to Congress. Chicago Fed President Austan Goolsbee speaks.

Wednesday: Producer Price Index (PPI). Personal Consumption. New York Fed President John Williams speaks. Fed Beige Book.

Thursday: Retail Sales. Weekly Jobless Claims. Manufacturing & Trade: Inventories & Sales. NAHB Housing Market Index. Pending Home Sales. Dallas Fed President Lorie Logan speaks.

Friday: Housing Starts. Import Prices. Industrial Production. Capacity Utilization. University of Michigan Survey Results. 

Source: Investors Business Daily – Econoday economic calendar; July 10, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

PHOTO CREDIT: https://www.shutterstock.com/g/AddMeshCube

VIA SHUTTERSTOCK

FOOTNOTES AND SOURCES

1. WSJ.com, July 10, 2026
2. Investing.com, July 10, 2026
3. WSJ.com, July 6, 2026
4. CNBC.com, July 7, 2026
5. CNBC.com, July 8, 2026
6. CNBC.com, July 9, 2026
7. CNBC.com, July 10, 2026
8. CNBC.com, July 8, 2026 

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