The week was marked by heightened geopolitical tensions and continued volatility in semiconductor trading. Wall Street kicked things off on a strong note, with the Dow Jones Industrial Average (DJI) reclaiming 53,000 and notching another record close as chip stocks rebounded. That optimism quickly faded, however, as a sharp semiconductor selloff, rising crude, and President Donald Trump's claiming the ceasefire with Iran was over. The Dow logged its worst single-day percentage loss since June 10 on Wednesday, while the Federal Reserve's June meeting minutes showed policymakers remain divided on interest rates.
Stocks bounced back Thursday as chips recovered, with the Nasdaq Composite Index (IXIC) adding triple digits and the small-cap Russell 2000 Index (RUT) posting its best day since June. At this point, the market is eyeing mixed weekly results after reports emerged that Qatar and Pakistan are working to bring the U.S. and Iran back to the negotiating table.
AI, Quantum, and More in Focus
Semi stocks dominated, with strength in names such as Lam Research (LRCX) and Applied Materials (AMAT) helping fuel Monday's rally. Elsewhere, Alibaba (BABA) picked up steam as investors rotated into Chinese tech, while Meta Platforms (META) slipped as AI spending concerns surfaced.
Crypto-adjacent name Circle Internet Group (CRCL) surged after securing final bank charter approval, while Terawulf (WULF) jumped after landing a major data center deal tied to Anthropic. Meanwhile, D-Wave Quantum (QBTS) approached a historically bullish trendline. Friday, investors monitored the U.S. trading debut of South Korean chipmaker SK Hynix (SKHY).
Beyond Big Tech
Not all of this week's action centered on artificial intelligence. Cruise operator Carnival (CCL) struggled as higher crude prices renewed pressure on travel stocks, while Rivian Automotive (RIVN) came under pressure after announcing a share offering. Elsewhere, bullish analyst attention lifted First Solar (FSLR) and T-Mobile US (TMUS).
Earnings Season on Deck
While a handful of earnings reports including Delta Air Lines (DAL) and PepsiCo (PEP) started to trickle in this week, several bank names are set to kick off next week's run. Some names include JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), and BlackRock (BLK). Investors will also digest June consumer price index (CPI) and producer price index (PPI) data, retail sales, and consumer sentiment readings for additional clues on the economy and the Federal Reserve's next move.
In the meantime, take a look at why the current sentiment backdrop continues to favor bulls, plus how small caps took the crown for the first half of 2026 trading.
