The stock market has continued its 2026 rally this week, with the NASDAQ continuing to outpace the Dow. This comes as investors have rotated back into technology stocks after a sharp relief rally tied to the dropping oil prices and easing Middle East tension as the United States and Iran reach a deal. This current stock market move is powered by a mix of macro relief, earnings support, and a narrow set of market leaders. Mostly, semiconductor stocks have been the drivers of the rally as they rose to new all-time highs, emerging as one of the winners of the current AI craze.
NASDAQ Leads Stock Market Gains, The Dow Follows
According to FRED data from the Federal Reserve Bank of St. Louis, the S&P 500 closed at 7,500.58 on June 18, 2026. The rally spread as the Nasdaq Composite finished at 26,517.93, while the Dow Jones Industrial Average stood at 51,492.55 on June 17, 2026. Reuters had previously reported that U.S. equities had rallied on June 15, 2026, after the United States and Iran reached a preliminary agreement to end the conflict and reopen the Strait of Hormuz, easing inflation fears as oil prices fell.
The rally was further propelled by the fact that there is now cheaper energy, with expectations that the Federal Reserve may avoid further tightening in the near term. In addition, there has been a lot of positive sentiment surrounding the AI boom, pushed even further by the SpaceX IPO at over $1 trillion.
While the stock market rally has been broad, the NASDAQ has been the clearest beneficiary of the latest rebound due to its heavy leanings on growth and technology stocks. The Reuters report had said that the NASDAQ had jumped 3.07% on June 15 after the Iran news. Then on June 18, the Nasdaq Composite gained an additional 1.9% to reach 26,517.93, with technology and semiconductor stocks being at the top of the list.
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What’s Driving The Rapid Rise?
Earlier in the week, Wealthier Today reported that oil prices had seen a notable decline. Following the US-Iran deal that eased tensions surrounding the Strait of Hormuz, oil prices saw a daily decline of 4.7%. The most interesting thing about this decline is that it triggered a fall to levels not seen in the last three months. As expected, this had a ripple effect across the stock market, and technology stocks took the helm of the rally.
Another report mapped out the trajectory of semiconductor stocks across the market, suggesting a new direction when it comes to leveraging the AI bull market. The data showed that stocks like Nvidia’s NVDA and Taiwan Semiconductor’s TSM both rose to new all-time highs. Intel’s stock was one of the best performers, with a 10.6% surge triggered by Donald Trump’s announcement of an Apple and Intel collaboration on chip design.
As demand for exposure to the AI industry continues to rise, it is expected that semiconductor companies will see the most interest. The semiconductor market cap already saw a 99% increase, and this growth could continue in the near term. As for the AI stocks, investors continue to watch closely how this market will evolve amid the calls that it is a possible bubble that will soon burst.