AI-chip rebound lifts Nasdaq 1.3% and S&P 500 0.9%

U.S. stocks rallied on July 21, 2026, as Micron Technology, Nvidia and other semiconductor shares led a rebound in technology stocks.

The Nasdaq Composite gained 1.3% to close at 25,837.21, while the S&P 500 rose 0.9% to 7,509.20. The Dow Jones Industrial Average finished at 52,224.64.

The move reversed part of the prior week’s selloff in artificial-intelligence-related stocks and restored technology’s leadership in the broader market. Strength in chip shares matters because semiconductor companies are central to investor expectations surrounding AI infrastructure and technology-sector growth.

The rally also showed that demand for technology shares remained resilient despite rising oil prices and Treasury yields, two factors that can pressure corporate costs, equity valuations and investor risk appetite.

The index closes and semiconductor-led rebound are confirmed. What remains uncertain is whether the recovery in AI-related shares will persist, particularly if oil prices and Treasury yields continue to rise.