The stock market notched a winning week as technology stocks and semiconductor companies led gains, with the S&P 500 closing 0.42% higher at 7,575.39 on Friday to cap its fourth consecutive week of advances.
The Nasdaq Composite, home to many tech-heavy companies, closed 0.29% higher at 26,281.61, while the Dow Jones Industrial Average added 0.3% for the day. The week’s gains came despite renewed U.S.-Iran tensions that rattled markets earlier in the period.
Semiconductor stocks were the standout performers throughout the week, with the VanEck Semiconductor ETF (SMH) climbing 2.5% on Thursday alone. Micron Technology surged more than 7% after announcing a $3 billion strategic investment to strengthen the U.S. semiconductor supply-chain ecosystem, according to CNBC. SanDisk shares popped 7.6% as part of the broader chip sector rally.
The semiconductor strength reflected investor enthusiasm around artificial intelligence infrastructure demand. Chip stocks have become a dominant force in the market, with semiconductor companies now representing a record portion of the S&P 500’s composition. The sector benefited from expectations for continued AI-driven demand for computing power and memory chips.
South Korean memory chipmaker SK Hynix made its highly anticipated U.S. debut on Friday, with shares rising in early trading. The IPO was reportedly more than seven times oversubscribed, signaling strong investor appetite for semiconductor exposure at a time when memory chip demand remains elevated due to AI applications.
Oil prices declined during the week, which helped offset concerns from renewed military tensions in the Middle East. Crude futures fell as President Donald Trump signaled potential negotiations with Iran, easing some of the geopolitical risk premium that had weighed on equities earlier in the period.
The winning week extended a positive streak for equities as investors rotated back into technology and semiconductor stocks after a period of volatility in early July. The rotation reflected confidence that the artificial intelligence trade remains intact despite recent concerns about valuation levels and competition in the sector.
Sources
- CNBC — S&P 500 and Nasdaq closing prices, semiconductor rally details, Micron investment announcement
- Barron’s — S&P 500 weekly performance confirmation
- Reuters — SK Hynix U.S. debut and oversubscription details
- Investopedia — Weekly market performance summary
