US stocks rose on July 7 (local time), with the Dow Jones Industrial Average crossing the 53,000 mark for the first time on a closing basis, driven by a rebound in artificial intelligence-related technology stocks. The Dow closed at 53,055.91, up 0.29% from the previous trading day, while the S&P 500 rose 0.72% to 7,537.43 and the Nasdaq Composite jumped 1.12% to 26,121.16. The rally was fueled by renewed optimism that the AI investment cycle, which had powered this year's market gains, would regain momentum, triggering a rebound in semiconductor stocks after two consecutive days of decline. Technology stocks led the advance in the first trading session following the US Independence Day holiday, with the technology sector ETF XLK surging 2.98% and the semiconductor ETF SMH climbing 2.3%.
NVIDIA Clarifies Product Roadmap Unchanged Amid Asia Market Concerns
Investor sentiment recovered as AI-related companies issued a series of positive announcements. NVIDIA addressed concerns raised in Asian markets regarding delays in AI server launches, stating that "the product roadmap remains unchanged." Broadcom announced an extension of its partnership agreement with Apple through 2031. SK Hynix initiated formal procedures for a US listing valued at approximately $29 billion. The market is closely watching Samsung Electronics' earnings announcement scheduled for release, viewing it as an important variable for gauging AI memory demand.
Semiconductor stocks attracted bargain-hunting buyers after profit-taking had driven weakness the previous week. The semiconductor ETF SMH rebounded 2.3% after declining for two consecutive weeks, though it had already recorded gains exceeding 80% in the first half of the year. Western Digital surged 7.1%, while Teradyne, Marvell Technology, and Oracle each rose approximately 2%.
Microsoft Announces 4,800 Layoffs, Dell Rises on Trump Promotion
Microsoft announced layoffs affecting 4,800 employees, representing 2.1% of its total workforce, with the stock declining 1% following the announcement. Dell Technologies rose 4.4% after US President Donald Trump publicly promoted the company's computers during a market opening ceremony broadcast from the White House.
June Service Sector Data Shows Expansion with Moderating Growth Pace
Economic indicators supported investor sentiment. Following weaker-than-expected employment data released the previous week, the June service sector index released showed the economy maintained an expansion trajectory while growth pace moderated somewhat. With cost pressures easing and corporate hiring increasing, market participants assessed that the probability of additional interest rate hikes by the Federal Reserve had diminished.
BlackRock Investment Institute analyzed that the core issue in the AI bubble debate is not current valuations but whether companies can maintain high profit growth rates going forward. The analysis stated that if AI drives productivity and economic growth to sustain current high corporate profits, then current elevated stock prices can be justified. UBS projected that investors this week would seek confirmation that technology stock volatility is calming and that major cloud providers' AI investment plans remain intact, forecasting that market confidence would strengthen further if the AI infrastructure investment stance is maintained.
FAQ
What milestone did the Dow Jones Industrial Average reach on July 7?
The Dow Jones Industrial Average crossed the 53,000 mark for the first time on a closing basis on July 7 (local time), finishing at 53,055.91, up 0.29% from the previous trading day.
What did NVIDIA announce regarding its product roadmap?
NVIDIA stated that "the product roadmap remains unchanged" in response to concerns raised in Asian markets about potential delays in AI server launches.
Which companies announced significant corporate actions on July 7?
Broadcom announced an extension of its partnership agreement with Apple through 2031, SK Hynix initiated formal procedures for a US listing valued at approximately $29 billion, and Microsoft announced layoffs affecting 4,800 employees (2.1% of its workforce).
