AI Rally Resumes as Chipmakers Rebound Sharply – US Market Wrap

A strong rebound in major semiconductor stocks lifted US equities as investors returned to the artificial intelligence trade, betting the theme that has driven the bull market still has further to run.

After a sharp pullback, a widely followed semiconductor index posted its biggest gain since April 2025, helping the Nasdaq 100 climb 3.4%. Microsoft surged 16%, adding roughly $450 billion in market value in the largest single-day increase ever recorded for a company. After the closing bell, Amazon rose on stronger-than-expected earnings, while Apple traded lower.

Economic data pointed to continued resilience in the US economy, with solid consumer spending and business investment suggesting underlying strength even as second-quarter growth moderated. Long-term Treasury yields continued to rise a day after the Federal Reserve left interest rates unchanged amid elevated inflation, while the dollar weakened. The Japanese yen briefly surged following intervention by Japanese authorities and the Bank of Japan.