Wall Street Rises, Chip Stocks Soar
US stocks closed higher on Tuesday (July 21), supported by a rally in semiconductor stocks. The S&P 500 rose 0.9%, the Nasdaq 100 gained 1.9%, and the Dow Jones Industrial Average added 385 points.
The chip sector's strength was the main driver of the market's rise. Semiconductor stocks continued their rebound from last week's pressure after strong export data from Taiwan and South Korea rekindled optimism about the industry's prospects.
Nvidia rose 2% after announcing its latest chip designs were beginning to reach customers. Intel jumped 8.6% after announcing job cuts, while Micron surged 12.2%, SanDisk rose 14.3%, and AMD gained 8.1%.
The chip sector rally came ahead of Alphabet's earnings report on Wednesday. Investors awaited new signals regarding demand for AI infrastructure from large companies, or hyperscalers, which have historically been the main drivers of technology spending.
Outside of the technology sector, the market remained relatively stable despite the renewed US-Iran conflict and rising oil prices. However, persistently high Treasury yields are limiting gains in financial stocks as the market continues to monitor inflation risks and the direction of interest rates.
Impacting the market, a rebound in chip stocks could maintain positive momentum for the Nasdaq and S&P 500 in the short term. However, the market remains heavily dependent on the financial reports of major technology companies and developments in the Middle East conflict. If oil prices continue to rise and yields remain high, the stock rally risks being further curbed.
Source: Newsmaker.id
