Stock Market Today: Nasdaq, S&P 500 Rise as AI Optimism Returns, Dow Slips Ahead of Key Fed Minutes
U.S. stocks were mixed on Monday as investors returned from the holiday weekend, with tech shares leading the way. The Nasdaq Composite rose roughly 1.1%, while the S&P 500 gained about 0.6%. The Dow Jones Industrial Average, meanwhile, slipped slightly after closing at another record high before the holiday break.
Refreshed optimism in AI stocks helped drive gains after signs of resilient semiconductor demand emerged from Asia. Investors also looked ahead to a pivotal week featuring the release of minutes from the Federal Reserve's latest policy meeting, which could provide fresh insight into the central bank's outlook for interest rates following June's softer-than-expected jobs report.
Market Movers:
- TeraWulf (WULF) +15%: Shares soared after the company signed a 20-year lease with Anthropic for its Justified Data campus in Kentucky, a deal expected to generate approximately $19 billion in contracted revenue. TeraWulf also agreed to sell its stake in the Abernathy Joint Venture, unlocking roughly $450 million to help fund future AI infrastructure projects.
- United Microelectronics (UMC) +8%: Shares climbed after the foundry reported June revenue increased 22.9% year over year, while first-half revenue rose 11.3%. The results reinforced expectations that semiconductor demand remains healthy despite recent volatility across the chip sector.
- Riot Platforms (RIOT) +8%: Crypto mining stocks rallied after Bitcoin climbed above $63,000 for the first time in two weeks. Improving market sentiment, easing inflation expectations, and lighter holiday trading volumes helped lift digital asset prices, boosting several crypto-related names.
- Tesla (TSLA) +3%: Tesla gained after expanding its Robotaxi service into Miami, marking another step in its autonomous ride-hailing strategy. The rollout builds on last month's Austin launch and signals the company's continued push beyond traditional electric vehicle manufacturing.
- ZIM Integrated Shipping (ZIM) -7%: Shares fell after comments from Israeli Prime Minister Benjamin Netanyahu created uncertainty surrounding the company's proposed merger with Hapag-Lloyd. ZIM reiterated that regulatory reviews remain ongoing and that no changes have been made to the transaction timeline or merger terms.
AI Trade Regains Momentum
Technology stocks bounced back after Foxconn reported stronger-than-expected quarterly sales, providing another indication that demand for AI hardware remains robust. The update eased some of the concerns that surfaced in late June over elevated AI infrastructure spending and weakening chip demand. Attention now turns to Samsung Electronics' earnings, where investors are expecting a dramatic year-over-year increase in profit driven by strong demand for memory chips used in artificial intelligence applications. The results could provide another important gauge of the health of the AI investment cycle.
Markets Shift Focus to the Federal Reserve
Last week's weaker June jobs report has tempered expectations for additional Federal Reserve rate hikes in the near term, though policymakers continue to stress that inflation remains above target. Investors will closely examine minutes from the Fed's latest meeting on Wednesday for clues about how officials are balancing cooling labor market conditions against persistent price pressures. The release could shape expectations for the remainder of the summer, particularly as markets continue debating whether another rate hike later this year remains likely.
Oil Prices Stabilize as Middle East Remains in Focus
Oil prices traded little changed after OPEC+ agreed to increase production targets while shipping continued to normalize through the Strait of Hormuz. The combination has helped ease inflation concerns that intensified earlier this year during heightened tensions between the United States and Iran. Even so, geopolitical risks remain firmly on investors' radar. Analysts continue to view the durability of the U.S.-Iran peace framework as one of the biggest factors influencing energy markets, inflation expectations, and broader investor sentiment heading into the second half of the year.
Looking Ahead
Investors now turn their attention to Wednesday's release of the Federal Reserve meeting minutes, which could offer greater clarity on the outlook for interest rates after June's softer employment report. Markets will also continue monitoring incoming economic data for signs that inflation is cooling without significantly weakening economic growth. Meanwhile, the AI trade faces another important test as semiconductor earnings season approaches. Strong results from major chipmakers could reinforce confidence that artificial intelligence spending remains intact, while developments in the Middle East and energy markets will continue to shape inflation expectations and broader market sentiment.
