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
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
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
