Semiconductor Surge Propels Nasdaq as Intel Earnings Spark Tech Rally

The Nasdaq Composite climbed 1.21% to 24,734.24 by midday Thursday, driven by a powerful rally in semiconductor stocks. The S&P 500 followed suit, rising 0.51% to 7,144.39, while the Dow Jones Industrial Average dipped 0.37% to 49,127.05 as cyclical and financial sectors lagged. The primary catalyst was a blowout quarterly report from Intel, which saw its shares surge 23.75% following strong earnings and optimistic forward guidance. This momentum spilled over into the broader chip sector, with Advanced Micro Devices (AMD) rallying 15.15% and other firms, including Qualcomm and Wolfspeed, posting double-digit gains. The PHLX Semiconductor Index, which tracks leading chipmakers, has now risen for 17 consecutive trading days and has gained over 50% in the last six months, reflecting sustained investor optimism regarding artificial intelligence fundamentals. Despite the tech strength, geopolitical risks persist. Restricted traffic through the Strait of Hormuz has kept oil prices elevated, contributing to the Dow's underperformance. Additionally, Bank of England Deputy Governor Sarah Breeden warned that investors may be underestimating risks associated with high AI valuations, private credit issues, and potential macroeconomic shocks as indices continue to hit all-time highs.