Dow tops 53,000 for first time as Broadcom, AMD surge lifts Wall Street

US stocks rose across the board Monday, driven by a rebound in AI chip shares. The Dow Jones Industrial Average crossed the 53,000 mark for the first time, while the Nasdaq Composite climbed more than 1 percent on semiconductor strength.

At the New York Stock Exchange on Monday, the Dow Jones Industrial Average closed up 155.84 points, or 0.29 percent, at 53,055.91. The S&P 500 gained 54.19 points, or 0.72 percent, to finish at 7,537.43, while the tech-heavy Nasdaq Composite rose 288.49 points, or 1.12 percent, to close at 26,121.16.

Market momentum shifted back toward AI chip stocks. Bargain hunters moved into the sector after last week's profit-taking pressure, pushing the Philadelphia Semiconductor Index up 2.2%. The S&P 500's information technology sector also rose 1.3%, leading the broader index higher.

Broadcom jumped 3.7% after the company extended its custom chip development and supply partnership with Apple through 2031. The deal eased some concerns about slowing semiconductor demand, as Apple chose to maintain a long-term supply relationship with Broadcom even as it expands its own in-house chip development.

AMD and Teradyne also gained on raised price targets from Wall Street analysts. Goldman Sachs lifted its targets for both stocks, citing demand for AI servers and semiconductor equipment. AMD surged more than 6% while Teradyne added more than 2%.

Nvidia edged higher despite reports suggesting delays in its next-generation AI system development. Some research reports raised the possibility that the timeline for its next-generation AI rack architecture could slip, but Nvidia said its roadmap remained unchanged, keeping investor sentiment largely intact.

Upcoming events tied to major Korean chipmakers also emerged as a gauge of global AI semiconductor sentiment. Samsung Electronics was set to release its preliminary second-quarter earnings that day, while SK hynix is pursuing a Nasdaq listing for its American depositary receipts. The SK hynix ADR issuance is drawing attention as an example of a company broadening its global investor base by riding demand for AI memory chips.

The index gains did not reflect broad-based strength across the market, however. Within the S&P 500, declining stocks outnumbered advancing ones. Large-cap technology and semiconductor shares drove the indexes higher, while cyclical stocks and some consumer names lagged.

Economic data posed little burden to markets. The Institute for Supply Management's June services purchasing managers index came in at 54.0, down from 54.5 in May, but remained above the 50 threshold separating expansion from contraction. The employment sub-index rose to 51.2, returning to expansion territory for the first time in four months, while the prices sub-index eased to 67.7.

In the bond market, US Treasury yields edged down, supporting sentiment toward growth stocks. Investors are looking to the minutes of the June Federal Open Market Committee meeting, due Wednesday, for clues about the Federal Reserve's interest rate path.

The second-quarter earnings season also kicks off in earnest this week, with results expected from major companies including Delta Air Lines and PepsiCo. Market attention will focus on how much of the surge in AI investment is translating into actual corporate profits. With AI chip stocks rebounding, earnings results and the FOMC minutes this week are seen as a near-term inflection point — investors will need confirmation that the rally is backed by fundamentals.

The NYSE and Nasdaq both held opening bell ceremonies Monday to coincide with the launch of "Trump Accounts" at the White House. President Donald Trump rang the opening bells of both exchanges remotely from the Oval Office, with the moment broadcast live on screens at the NYSE and Nasdaq trading floors.