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Major stock indexes mostly rose Wednesday ahead of several Big Tech earnings reports after the closing bell. Meanwhile, 10-year Treasury yields hit their highest level in two months amid inflation concerns as oil prices surged further.
The blue-chip Dow Jones Industrial Average and benchmark S&P 500 were up a respective 0.4% and 0.2% in recent trading, while the tech-focused Nasdaq Composite was 0.1% lower. The trio closed higher yesterday following three consecutive sessions of losses, as chip stocks powered gains.
Investors are awaiting Big Tech earnings from Magnificent Seven members Alphabet (GOOGL) and Tesla (TSLA) after the closing bell. Shares of Google parent Alphabet ticked higher, while those of Tesla edged lower after the Elon Musk-led electric vehicle maker led the septet’s gainers with a 2.5% advance yesterday. (Read our live coverage of Big Tech earnings here.)
“The outcome of tonight’s reports will likely influence investor sentiment toward the broader AI ecosystem,” Siebert Financial CIO Mark Malek said in written commentary. “Subsequent technology earnings will be evaluated through the same lens.”
GE Vernova (GEV) shares dropped about 7% and those of AT&T (T) rose 3% after they reported results before the bell Wednesday. International Business Machines (IBM), Texas Instruments (TXN), and ServiceNow (NOW) are slated to do so after markets close.
Shares of Super Micro Computer (SMCI), or Supermicro, soared 22% to pace the S&P 500 after the maker of AI servers estimated gross margins in its recently completed fourth quarter would be roughly double their previous projection. Those of rival server makers Hewlett Packard Enterprise (HPE) and Dell Technologies (DELL) rose 5% and 10%, respectively.
Oil prices jumped as the U.S.-Iran conflict continued and U.S. Secretary of State Marco Rubio told reporters a meeting in the Philippines that the Middle East nation was “not serious about talks.” Later Wednesday, President Donald Trump wrote on Truth Social that “any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran.” West Texas Intermediate futures, the U.S. benchmark, advanced 2% to $86 a barrel, their highest level in six weeks. Brent crude futures, the global benchmark, were 2.3% higher to $93 a barrel.
Meanwhile, the 10-year Treasury yield, which influences interest rates on a variety of consumer loans including mortgages, hit its highest intraday level since May 21 early Wednesday at above 4.66%. It recently was at 4.65%, up two basis points from Tuesday’s close. According to the CME Group’s FedWatch tool, traders are pricing in a 24% likelihood of a Federal Reserve rate hike at its meeting next week, up from less than 11% one week ago, and a 69% chance of at least a quarter-percentage-point rate hike at its September meeting, up from 48% a week ago.
Bitcoin was trading around $66,000, down slightly over the past 24 hours. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, edged lower to 101.10. Gold futures rose 2.1% to $4,165 an ounce.
JULY 22, 2026 AT 04:45 PM GMT
Utilities, Materials Lead S&P 500 Sectors Higher
The S&P 500 is slightly higher on the day. Its Utilities and Materials Sectors are aiding the cause.
The benchmark index is up 0.2% in early afternoon trading, paced by the Utilities and Materials Sectors, which are a respective 1.9% and 1.5% higher.
Seven of the 11 sectors tracked by the index are in the green. Consumer Discretionary shares are down 0.6% to pace sector decliners.
JULY 22, 2026 AT 03:24 PM GMT
GE Vernova Shares Sell Off Following Weak Wind Orders
GE Vernova (GEV) posted stronger-than-expected second-quarter revenue and lifted its full-year outlook. Its shares are sinking, though, because of soft results in its Wind segment.
Shares of GE Vernova dropped about 6% Wednesday morning the former General Electric unit posted Q2 earnings of $2.47 per share, well below the $3.15 consensus of analysts surveyed by Visible Alpha.
GE Vernova's Wind orders came in at $1.2 billion, below expectations of $1.36 billion. It marked a 40% organic decline year-over-year, "due to lower equipment at Onshore Wind."
The Cambridge, Mass.-based firm posted revenue of $11.1 billion, above estimates of $10.8 billion, and raised its 2026 revenue forecast to a range of $45.5 billion to $46.5 billion, up from $44.5 billion to $45.5 billion. It also lifted its free cash flow outlook to $11.5 billion to $12.5 billion from the prior $6.5 billion to $7.5 billion.
Despite today's decline, shares of GE Vernova are up 55% since the start of the year.
JULY 22, 2026 AT 01:36 PM GMT
Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks
A number of software stocks have had a tough time lately. That could leave some high-profile names primed for a rebound, according to Morgan Stanley.
The S&P 500 software industry index has dropped more than 25% from its highs last October as many investors trimmed their holdings in the sector amid worries about AI-driven disruption. America’s largest software exchange-traded fund, the iShares Expanded Tech-Software Sector ETF (IGV), is down 13% this year so far, compared to the S&P 500’s close to 10% gain over the same period.
“We think the market has become too negative,” Morgan Stanley analysts wrote in a note to clients Tuesday, saying that they believe “there are more opportunities than investors currently believe.” Here are some of their top ideas for ways investors could play a rebound in the sector.
Microsoft (MSFT), which has seen its stock lose nearly a fifth of its value year-to-date, making it the weakest-performing Magnificent 7 stock of 2026 so far, was one of Morgan Stanley’s picks. The software giant was the “highest quality” choice Morgan Stanley screened, based on its competitive moat and near-term growth potential, according to the analysts. Their price target of $600 for the stock would suggest 50% upside from Tuesday’s close and is a bit above the analyst consensus compiled by Visible Alpha around $550.
Read the full article here.
JULY 22, 2026 AT 12:31 PM GMT
Monday.com to Lay Off 20% of Workforce
Before the bell, Monday.com said in a regulatory filing that it initiated a restructuring plan “intended to support a leaner, more focused operating model.” It will include mass layoffs.
The Israel-based company, known for its software that helps teams keep track of work, said it intends to lay off about 20% of its workforce as it “continues to invest in its AI-driven growth strategy.”
Monday.com estimates it will incur about $45 million to $55 million in net charges, which are expected to be recognized in the second half of the year.
The firm now sees full-year adjusted operating margin of about 15%, up from its previous guidance of roughly 13%. It still expects year-over-year revenue growth and adjusted free cash flow margin of about 19% to 20%.
Monday.com shares have lost half their value since the start of the year. They rose 2% premarket following the news.
JULY 22, 2026 AT 12:04 PM GMT
Supermicro Shares Soar on Updated Gross Margins Forecast
Super Micro Computer (SMCI) significantly lifted its gross margins estimate for its recently completed fiscal fourth quarter. Investors loved what they heard.
Shares of Super Micro Computer, or Supermicro, soared 15% before the bell Wednesday, a day after the maker of AI servers estimated gross margins for the quarter ended on June 30 would be roughly double their previous projection.
The San Jose, Calif.-based firm now expects Q4 gross margins to be in the range of 15% to 17%, up from its prior guidance of 8.2% to 8.4%, “primarily due to a favorable customer and product mix.”
Although Supermicro now sees Q4 revenue “to be near the low end of our guidance of $11.0 billion to $12.5 billion,” it added that its “backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter.”
The news provided a lift to shares of rival server makers Hewlett Packard Enterprise (HPE) and Dell Technologies (DELL), which rose more than 2% apiece.
Shares of Supermicro, which is slated to release its full earnings report on Aug. 11, entered Wednesday down about 13% this year.
UPDATE—This item has been updated to correct the quarter of the updated forecasts and add the date of its full earnings report.
JULY 22, 2026 AT 10:57 AM GMT
Stock Futures Point to Lower Open on Big Tech Earnings Day as Oil Prices Jump
Futures contracts tied to the Dow Jones Industrial Average were fractionally lower.
S&P 500 futures pointed 0.2% lower.
Nasdaq 100 futures were down 0.6%.
Read the original article on Investopedia
