US Closing Bell | Tech surge lifts Nasdaq 2.6% as semis sizzle on Micron-led rally

US Closing Bell08-05 04:02

Market

August 5, U.S. stocks closed sharply higher, powered by a broad rebound in big-cap technology and chip names after upbeat industry forecasts. The Dow Jones Industrial Average rose 1.71%, the S&P 500 climbed 1.79%, and the tech-heavy Nasdaq Composite jumped 2.59%. A bullish outlook from memory-chip giant Micron ignited fresh enthusiasm for semiconductors and artificial-intelligence plays, helping investors shrug off lingering concerns about higher-for-longer rates.

Semiconductor and AI names dominated the session’s leaderboard. Palantir Technologies surged 29.45% after posting stronger-than-expected government contract wins, while Applied Optoelectronics spiked 19.44% on robust fiber-optic demand. Leveraged ETF Direxion Daily Semiconductors Bull (SOXL) rallied 19.87% in sympathy. Marvell Technology gained 12.81% and Intel jumped 10.92% following Micron Technology’s 7.62% pop on upbeat pricing guidance. Advanced Micro Devices advanced 7.00% as investors awaited its AI chip launch, and Broadcom added 6.61% on reports of new AI accelerator orders. Nvidia rose 2.54% to another record close amid persistent enthusiasm for its data-center GPUs. On the downside, Amazon.com fell 2.32% after a cautious consumer-spending outlook trimmed excitement about its latest earnings beat.

Outside the megacap spotlight, overseas-listed chipmakers and other thematic plays kept up the momentum. Taiwan Semiconductor Manufacturing climbed 2.72% to a record, United Microelectronics leapt 10.38% after raising full-year revenue targets, and Silicon Motion Technology gained 6.75% on takeover speculation. Kingsoft Cloud added 9.92% as Chinese AI-related stocks rallied, while optical-component maker Lumentum jumped 8.92% on takeover chatter. Inverse fund Direxion Semiconductors Bear (SOXS) tumbled 20.25% amid the sector’s surge.

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