Key Takeaways:
Meta Platforms Inc. shares surged more than 8% over two sessions, extending a tech-led rally that pushed the Nasdaq Composite up 1.3% on Thursday.
The S&P 500 Information Technology Sector jumped 1.7% to lead the 11 industries tracked by the benchmark index, while the iShares Semiconductor ETF rose 3.5% and the Roundhill Memory ETF finished up 3.7%, exchange data show. The broader S&P 500 gained 0.8% and the Dow Jones Industrial Average added 0.3%.
Chipmakers including Micron Technology, Marvell Technology, Advanced Micro Devices, Sandisk and ARM Holdings each rose between 5% and 9%. Among the Magnificent Seven mega-cap tech stocks, Meta posted the largest gain, closing up 4.7% before adding another 4% in pre-market trading Friday.
The rally follows a volatile period for AI stocks. The PHLX Semiconductor Index nearly doubled in the first half of 2026 before giving back some gains in July. The 22 stocks in the S&P 500 that gained more than 100% in the first six months — most in the tech sector — were down an average of 16% in July before this week's rebound, according to Bespoke Investment Group.
Not all sectors participated in the advance. The S&P 500 Communication Services, Consumer Staples and Energy sectors were the three worst performers Thursday, down 1.4%, 1.4% and 1.1%, respectively. Paramount Skydance was the worst-performing individual stock in the S&P 500, falling 6%. Costco Wholesale Corp. fell more than 4% after reporting its slowest monthly sales growth since February, while PepsiCo declined 3% after posting mixed quarterly results.
The rotation into tech came as oil prices retreated, with West Texas Intermediate crude falling 2.3% to $71.85 a barrel and Brent crude down 2.5% to $76.10, easing inflation concerns that had weighed on growth stocks. The 10-year Treasury yield was at 4.55%, down from 4.58% the prior day, while the U.S. dollar index slipped fractionally to 100.96. Gold rose 1.2% to $4,130 an ounce.
For Meta, the two-day surge recoups a portion of the losses from earlier in July, when AI-related stocks sold off sharply after a blistering first-half run. The stock remains up about 6% since the start of the year. The broader tech rally comes as investors look ahead to the second-quarter earnings season, with results from major technology companies expected in the coming weeks.
Signs of sustained AI demand continue to emerge. SK Hynix, the South Korean memory chip giant, is offering about 178 million American depositary receipts in a U.S. listing expected Friday, with Bloomberg reporting the offering is at least seven times oversubscribed. Cerebras Systems shares jumped 7% after the company announced its first European data center capacity will come online by year-end.
This article is for informational purposes only and does not constitute investment advice.
