US stocks stacked a second straight strong session on Tuesday, and this time the story was all about chips and one explosive standout. The tech-heavy Nasdaq jumped around 2.6% to a fresh high, the S&P 500 rose about 1.8%, the Dow added 1.7%, and the small-cap Russell 2000 climbed roughly 2%. Advancers comfortably outnumbered decliners, but the real action was concentrated in semiconductors and in a single name that stole the day.
Palantir steals the show with a 29% moonshot
The headline belonged to Palantir (PLTR), which rocketed about 29% to roughly $163. A move of that magnitude only comes from a blockbuster earnings reaction, and it instantly reset the conversation around the AI-software darling. It is also a vivid reminder of just how much volatility comes packaged with a stock like this: the same name that can surge 29% in a day is the one trading at one of the most extreme valuations in the market. We laid out that double-edged reality in our Palantir hidden risks breakdown, and today put the upside side of that volatility on full display.
Chips rip across the board
The broader engine of the rally was semiconductors, which surged almost as a group. Intel (INTC) jumped about 11% to reclaim $100, Micron (MU) climbed roughly 8%, Qualcomm (QCOM) rose over 7%, AMD (AMD) added 7% to above $518, and Broadcom (AVGO) gained nearly 7%. Dell (DELL), a big beneficiary of AI server demand, leapt almost 9%.
It was the kind of broad chip melt-up that lifts entire semiconductor funds, and it fits the theme we broke down in our SOXX semiconductor ETF deep dive: when the AI-chip trade runs, it tends to run all at once.
Beyond tech, industrial bellwether Caterpillar (CAT) rose about 6%, a sign the strength was not purely a technology story.
The laggards: retail, healthcare and energy
Not everyone joined in. Consumer names lagged, with Nike (NKE) down about 3% and Amazon (AMZN) slipping over 2%. Healthcare was soft, led by UnitedHealth (UNH) down nearly 2%, and energy pulled back as Chevron (CVX) fell around 1.5%. Ford (F) also declined about 1%. The rotation was clear: money flowed into semiconductors and high-growth tech, and out of defensive and value corners.
What This Means for Investors
Two straight days of gains, a Nasdaq at new highs, and a semiconductor sector ripping higher: the bulls are firmly in control heading into the middle of the week. Palantir's 29% moonshot grabbed the headlines, but the more important signal was the breadth of the chip rally, which suggests the AI-hardware trade still has plenty of enthusiasm behind it. The one note of caution, as always after back-to-back surges, is that momentum this strong can reverse quickly, and the same volatility that sent Palantir up 29% works in both directions. You can track the full list of movers and screen for your own setups with our stock screener.
This article is for informational purposes only and is not financial advice. Always do your own research before investing. Previous market recap: Stock Market Today (August 3, 2026)
