US stocks today: Nasdaq rallies to sharply higher close; chip surge offsets Iran worries

US markets closed sharply higher with the Nasdaq up 1.27 percent at 26,198.76 and the S&P 500 gaining 0.79 percent to 7,541.83, driven by a surge in chip stocks. Micron Technology jumped after unveiling plans to invest more than $250 billion in the US through 2035 to meet AI-driven memory chip demand, while Applied Materials, Sandisk and Meta Platforms also rallied on AI chip news. Geopolitical tensions from Iran strikes on US military targets in Kuwait, Qatar and Bahrain partially capped gains, and traders are now pricing in a likely 25 basis point Fed rate hike by December.