Nasdaq 100 surges 1.5% as chip stocks lead AI rally
Wall Street rallied on Monday, led by a surge in semiconductor stocks that lifted the Nasdaq 100 by 1.5% and the S&P 500 by 0.7%. Investors rotated out of defensive sectors like consumer staples and health care into AI-related technology names, with specific strength in memory chips ahead of updates from Samsung and SK Hynix. The Russell 2000 continued to outperform major indices, gaining 0.9%.
*this image is generated using AI for illustrative purposes only.
A powerful rebound in semiconductor stocks lifted Wall Street on Monday, driving the tech-heavy Nasdaq 100 sharply higher as investors rotated out of defensive sectors in a broad risk-on move. The session was driven by a surge in memory chips, with the market betting that the artificial-intelligence trade powering the bull run still has room to grow ahead of Samsung's quarterly sales updates and SK Hynix's planned U.S. listing this Friday. The enthusiasm was concentrated, as money drained out of consumer staples, health care, and utilities, leaving the Dow Jones Industrial Average narrowly in the red despite briefly tagging a record above 53,000.
Market Performance and Sector Rotation
The S&P 500 rose 0.7% to 7,537.05, while the Dow Jones Industrial Average dipped 0.1% to 52,864. The Nasdaq 100 jumped 1.5% to 29,753, leading the major indices as semiconductor stocks did the heavy lifting. The small-cap Russell 2000 rose 0.9% to 3,022.81, extending its status as 2026's strongest major index. Sector performance was bifurcated; the Technology Select Sector SPDR Fund (XLK) led all sectors, up 2.5%, while defensive groups lagged significantly. The Consumer Staples Select Sector SPDR Fund (XLP) tumbled 1.9%, and the Health Care Select Sector SPDR Fund (XLV) fell 1.5%.
Semiconductor and AI Leaders
The VanEck Semiconductor ETF (SMH) jumped 3.6%, pacing the industry gains. Within the Magnificent Seven, Tesla Inc. (NASDAQ: TSLA) surged 5.9%, Broadcom Inc. (NASDAQ: AVGO) gained 3.8%, and NVIDIA Corp. (NASDAQ: NVDA) added 0.9%, while Microsoft Corp. (NASDAQ: MSFT) bucked the trend, falling 1.3%. Specific chip movers included Micron Technology Inc. (NASDAQ: MU), up 3.4%, and Western Digital Corp. (NASDAQ: WDC), which climbed 7.6% on memory-pricing tailwinds. Advanced Micro Devices Inc. (NASDAQ: AMD) jumped 9.3%, and QUALCOMM Inc. (NASDAQ: QCOM) added 6.9%. AI-infrastructure names Arista Networks Inc. (NYSE: ANET) and Vertiv Holdings Co (NYSE: VRT) rose 8.3% and 7.7%, respectively.
| Index | Last | % Change | YTD |
|---|---|---|---|
| S&P 500 | 7,537.05 | +0.7% | +10.1% |
| Dow Jones | 52,864 | -0.1% | +10.0% |
| Nasdaq 100 | 29,753 | +1.5% | +13.5% |
| Russell 2000 | 3,022.81 | +0.9% | +20.5% |
Top Movers and Deal News
IREN Ltd (NASDAQ: IREN) was the Russell 1000's top gainer, rising almost 15% as its pivot to AI data centers drew buyers. Peer TeraWulf Inc. (NASDAQ: WULF) rose 12.62% on the same theme. Credo Technology Group Holding Ltd (NASDAQ: CRDO) climbed 13.2% after BofA Securities lifted its price target to $340 from $252. Astera Labs Inc. (NASDAQ: ALAB) rose 9.9%. On the downside, Solstice Advanced Materials Inc. (NASDAQ: SOLS) plunged 14.2% after announcing a deal to acquire Element Solutions Inc. (NYSE: ESI) for roughly $14.5 billion. O'Reilly Automotive Inc. (NASDAQ: ORLY) slid 6.7% to a 52-week low on deal chatter, while AutoZone Inc. (NYSE: AZO) fell 5.5%.
Will the upcoming earnings reports from Samsung and SK Hynix validate the current optimism surrounding memory chip pricing?
Is the sharp rotation out of defensive sectors a temporary shift or the start of a sustained risk-on trend?
Can the Russell 2000 maintain its outperformance as the strongest major index of 2026 amid rising tech valuations?
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