Nasdaq Composite Jumps 0.9% as Semiconductors Stage a Comeback

The Nasdaq Composite rallied 0.9% Thursday as semiconductors surged on geopolitical relief and fresh capital deployment. President Trump's comments signaling potential Iran negotiations eased oil price fears, sparking a sharp rotation into hardware names.

Micron led the chip sector with a 7.5% jump after announcing a $3 billion domestic manufacturing investment. The move extends the semiconductor buildout theme that has driven episodic rallies in the space throughout the tariff and supply chain uncertainty of recent months.

The rally came with clear rotation costs. Alphabet fell as investors pulled back from software and hyperscaler names in favor of hardware exposure. The shift suggests traders are pricing in capital intensity and physical infrastructure plays over cloud-layer stocks in the near term.

Honeywell dropped another 9.2%, extending losses following its recent spinoff. The continued slide reflects ongoing post-restructuring pressure as the market reprices the separated entities.