SerpApi.Org
By Ragini Mathur and Avinash P
July 21 (Reuters) - Wall Street's main indexes rose on Tuesday, as a recovery in semiconductor shares helped shift the focus from concerns over fresh developments in the Middle East, while investors awaited major tech earnings for clues on the future of the AI trade.
U.S. forces launched fresh strikes in Iran's south and west in retaliation for the deaths of American soldiers. A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire.
Brent crude futures jumped over $90 a barrel following the strikes. [O/R]
Recently battered semiconductor stocks were leading gains. The Philadelphia SE Semiconductor index climbed 3.7%, rising for the second consecutive day.
The index ended Friday more than 20% below its late-June record high, confirming a bear-market decline. But the chip gauge is up nearly 72% on a year-to-date basis.
SanDisk, Western Digital and Micron Technology were up between 7.7% and 10.2%.
Lately, chip stocks have come under heavy pressure, as investors question whether this year's powerful rally in the sector has gone too far and scrutinize the lack of tangible returns on hefty investments by hyperscalers.
On the benchmark S&P 500, information technology led the gains with a 1.3% rise.
"Investors have to juxtapose strong earnings against the ongoing war with Iran," said Art Hogan, chief market strategist at B. Riley Wealth.
"To end this tug-of-war, we need to hear from hyperscalers like Alphabet reaffirming their CapEx spending plans. Such affirmation from large players is likely to put a floor under the drawdown in semiconductor names."
At 09:57 a.m. ET, the Dow Jones Industrial Average rose 171.34 points, or 0.33%, to 52,010.60, the S&P 500 gained 30.20 points, or 0.41%, to 7,473.48 and the Nasdaq Composite gained 172.68 points, or 0.68%, to 25,680.75.
Investor focus this week will turn to results from Alphabet and Intel, which could help determine whether the AI trade has further room to run amid elevated profit expectations.
Adding to the uncertainty, President Donald Trump on Monday unveiled 50% tariffs on a wide range of imports from Canada.
The Financial Times reported that Trump is also expected to impose fresh tariffs on dozens of countries as soon as this week, with his 10% global tariff poised to expire on Friday.
Among early movers, 3M shares gained 9.5% after the industrial giant lifted its full-year profit forecast.
Danaher fell 13% after the life sciences firm trimmed its core revenue growth outlook and reported weaker-than-expected revenue in its biotechnology business.
MSCI was down 11% after the index provider raised its full-year operating expense forecast despite better-than-expected quarterly revenue.
Software stocks were also under pressure after Morgan Stanley cut ratings and price targets on some names.
Adobe, Intuit, Workday and Salesforce fell between 1.5% and 2.6%.
Advancing issues outnumbered decliners by a 1.19-to-1 ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.
The S&P 500 posted five new 52-week highs and five new lows, while the Nasdaq Composite recorded 22 new highs and 64 new lows.
(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli)
