U.S. Three Major Stock Indices Close Higher, Arm Rises Over 9%

On July 9, 2024, U.S. stock markets closed higher, with the Dow Jones Industrial Average rising 0.27%, the Nasdaq Composite gaining 1.3%, and the S&P 500 increasing 0.81%. Major technology stocks mostly advanced: Arm Holdings surged over 9%, Meta Platforms rose over 4%, Tesla gained over 3%, and SpaceX and Intel each added over 2%. Amazon, Apple, and Microsoft posted modest gains, while Google, Nvidia, and Netflix edged lower. Chinese ADRs were mixed: iQiyi jumped over 8%, Alibaba, Tiger Brokers, Futu Holdings, and Pinduoduo rose over 1%, while Miniso, NIO, and XPeng fell over 2%, and Li Auto and Bilibili declined over 1%. The broad rally reflects continued investor optimism around tech earnings and AI-related growth, though sector rotation and valuation concerns persist.

Global Impact

Economically, the rally reinforces the AI-driven equity narrative, channeling capital into U.S. tech and away from value and international markets. This widens the valuation gap between U.S. and ex-U.S. equities, potentially triggering further rotation into U.S. assets.