Dow 49.9K. The Dow Jones Industrial Average finally joined the Nasdaq Composite and S&P 500 in exiting correction territory, but it ended the day just short of a major milestone.

The Dow rose 612 points, or 1.2% after briefly crossing the symbolic 50,000 level.

The S&P 500 ended up 1.5% while the Nasdaq jumped 2%.

Stocks gained from a double-dose of chip-stock enthusiasm and hopes that the U.S. and Iran could finally reach some kind of agreement on an end to the war and a reopening of the Strait of Hormuz. Oil prices also tumbled.

Advanced Micro Devices was the latest big firm with ties to the artificial intelligence trade that saw shares surge on earnings. It gained 19% to close the day with a $687 billion market cap. Apple, which also has a fair amount of pull on the S&P 500 and Dow, gained 1.2% and hit its first closing high since Dec. 2.

Though the Dow failed to close above 50,000—something it hasn’t done since Feb. 11—it did finish 10% higher than its lowest point after entering a correction in March.

The index has struggled to keep up with the S&P 5oo and Nasdaq, which marked their 14th and 10th record closes of the year, respectively.

A big reason for the Dow’s underperformance is its lack of semiconductors. Though the Dow committee replaced Intel with Nvidia in 2024, it’s Intel that’s been a big winner so far this year.

The PHLX Semiconductor Index, or SOX, hit fresh highs again on Wednesday. More and more market observers are invoking the dot-com bubble when discussing the recent run.

“We have written ad nauseam about how extreme the move in semis has been—in many cases not seen since the dot-com bubble,” writes Jonathan Krinsky, BTIG’s chief market technician.

According to Krinsky, the top 10 Nasdaq 100 stocks were recently up 784% over the last year on average. Back in 1999, the top 10 were only up 559%. They were up 662% right around the March 24, 2000 peak.

“The issue in the dot-com bust of course was that fundamentals didn’t support the price, and the SOX ultimately lost 84% from 2000-2002,” Krinsky writes.

While fundamentals are better for highflying stocks these days, he is worried about a correction. For now, it’s party time. Or is it?

The Hot Stock: Super Micro Computer +24.5%
The Biggest Loser: CDW -20.3%

Best Sector: Industrials +2.6%
Worst Sector: Energy -4.1%

If every day has been a party for chip stocks, tomorrow could bring a hangover.

That’s if the reaction to Arm’s earnings report this evening is any indication.

My colleague Adam Levine reports that adjusted earnings of 60 cents a share beat expectations for 58 cents, while revenue of $1.49 billion topped the consensus estimate of $1.47 billion.

That’s good news, right? The stock initially surged in late trading, but it was down 6% at last check. What gives, Adam?

Well, for starters, the stock had jumped nearly 14% in regular trading today following AMD’s results. Adam writes:

The iShares Semiconductor ETF was down 0.5% in late trading. Traders chasing chip stock momentum may want to stay hydrated tomorrow morning.

McDonald’s, Airbnb, Datadog, Texas Roadhouse, Planet Fitness, The RealReal, and TripAdvisor release results tomorrow.

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