The tech-heavy index clawed back early-July losses as Micron, Nvidia and Broadcom led a semiconductor rebound, while softer oil prices and expected SpaceX-related index flows supported sentiment.
The Nasdaq Composite rose about 1.1%-1.2% on July 9, reversing losses that had weighed on the tech-heavy benchmark since the start of the month. The S&P 500 gained roughly 0.8%, while the Dow added about 0.3%-0.4%. The recovery followed two sharp setbacks earlier in July, when the Nasdaq fell 0.66% on July 1 to close at 26,040.03 and then dropped another 1.16% on July 7 to 25,818.69 as concern over AI chip performance intensified. Semiconductor shares, which had led the earlier decline, drove the rebound instead. Micron Technology, which had fallen more than 10% in a single session during the selloff, joined Nvidia and Broadcom in the recovery, alongside Samsung and SK Hynix, two key memory chip suppliers tied to the AI infrastructure buildout. The move came after the semiconductor sector had gained more than 80% in the first half of 2026 before stalling in early July as traders took profits. Broader market sentiment was also helped by falling oil prices, which eased pressure from tensions between the US and Iran. Support for the Nasdaq also came from the upcoming inclusion of SpaceX in the Nasdaq-100, set for July 7 under new rules intended to accommodate mega-IPOs (large public listings). That change is expected to trigger passive fund flows, because index funds tracking the Nasdaq-100 would need to buy SpaceX shares to mirror the benchmark.