Tech Stocks Notch New Highs As Chipmakers Power The Rally: What's Driving Markets Wednesday?

Tech stocks climbed to new highs early Wednesday, with the Nasdaq 100 briefly touching 22,329 points after the opening bell, surpassing its previous peak from February 19.

Yet, by midday trading, the rally lost steam, with major indices giving back early gains. By 12:30 p.m. ET, the Nasdaq 100 was trading at 22,234, up 0.2% on the day. Other large-cap benchmarks hovered near the flatline, while the Russell 2000 fell 0.7%, reflecting weakness in small-cap names.

At a NATO meeting in the Netherlands, President Donald Trump said that a ceasefire between Israel and Iran remains in place and that the United States will continue exerting pressure on Tehran. He clarified that while sanctions remain, Iran is currently allowed to sell oil to China.

Trump also renewed his call for NATO allies to raise their defense spending to 5% of GDP, more than double the current 2% guideline, arguing that Europe must carry a larger share of the military burden.

In day two of his testimony before Congress, Federal Reserve Chair Jerome Powell said that evolving trade conditions could influence monetary policy decisions, suggesting that future trade agreements might create room for interest rate cuts—though no timing was provided.

Advanced Micro Devices Inc. AMD led chipmaker gains, rising 3.1% and reaching its highest level since early December 2024. The stock is tracking toward its strongest monthly performance since May 2023.

The broader chip sector is also rallying. The iShares Semiconductor ETF SOXX is up 15% month-to-date, on track for its best monthly return since November 2023.

Bond markets were steady, with the 10-year Treasury yield holding at 4.31%, showing little reaction to Powell's testimony or geopolitical headlines.

In commodities, oil prices rebounded 2% to $66 per barrel, after falling more than 12% over the previous two sessions. In industry news, Shell plc SHEL is reportedly in early-stage talks to acquire rival BP plc BP, though no formal offer has been made yet.

Gold was unchanged at $3,328 per ounce, while silver gained 0.5% to $36.

In crypto markets, Bitcoin BTC/USD advanced 1.2%, trading just above $107,000.

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Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF VOO flattened at $559.54.
• The SPDR Dow Jones Industrial Average DIA inched 0.2% lower to $429.91.
• The tech-heavy Invesco QQQ Trust Series QQQ edged 0.2% up to $540.48.
• The iShares Russell 2000 ETF IWM fell 0.7% to $212.93.
• The Technology Select Sector SPDR Fund XLK outperformed, up 0.6%; the Real Estate Select Sector SPDR Fund XLRE lagged, down 1.2%.

Wednesday’s Stock Movers

• FedEx Corp. FDX fell 2% despite beating earnings estimates as the outlook was less optimistic than expected.
• Other stocks reacting to earnings included Paychex Inc. PAYX, down 9%, and General Mills Inc. GIS, down 3.7%.
• Tesla Inc. TSLA tumbled 4.5% after new car sales recorded a 27% year-over-year decline in Europe.
• Micron Technology Inc. MU, the 2025’s top-performing chipmaker company as of late June, will report earnings after the close.

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