U.S. stock indices rose across the board, driven by a surge in semiconductor stocks. Despite ongoing uncertainties from tensions in the Middle East and U.S. tariffs on Canada, buying pressure increased for semiconductor stocks that had recently seen significant declines ahead of major tech earnings reports.
On July 21, the Dow Jones Industrial Average closed up 385.38 points, or 0.74%, at 52,224.64. The S&P 500 gained 65.92 points, or 0.89%, finishing at 7,509.20, while the tech-heavy Nasdaq Composite rose 329.13 points, or 1.29%, to close at 25,837.21.
The semiconductor sector led the market's gains, with the Philadelphia Semiconductor Index soaring 5.2% for a second consecutive day. Following recent concerns over high valuations and investment burdens related to artificial intelligence, buying interest surged in semiconductor stocks. The S&P 500's information technology sector also rose 2.35%, marking the highest increase among the 11 sectors.
Notable individual stock performances included SanDisk, which jumped 14.3%, while Western Digital and Micron Technology rose 12.5% and 12.2%, respectively. Investor sentiment for semiconductor stocks improved amid expectations that major tech companies would meet market forecasts.
Investor focus is now on upcoming earnings reports from major tech firms this week, including Alphabet, Intel, and Texas Instruments. The ability of these companies to support rising tech stock prices with solid earnings will likely be a key factor for the market moving forward.
Stock movements varied based on individual company earnings. 3M raised its annual profit outlook, resulting in a 7.3% increase in its stock price, while toy manufacturer Hasbro also saw an 8.8% rise after upgrading its annual revenue and profit forecasts. Conversely, life sciences company Danaher fell 11% after lowering its annual core revenue growth outlook.
Ongoing tensions in the Middle East remain a concern for the stock market. As military clashes continue between the U.S. and Iran, fears of oil supply disruptions have increased due to threats from Yemen's Houthi rebels against commercial shipping.
As a result, Brent crude for September delivery settled at $91.01 per barrel, while West Texas Intermediate (WTI) closed at $84.91. Despite inflation concerns stemming from rising oil prices, U.S. 10-year Treasury yields briefly rose to 4.64%. However, on this day, expectations for corporate earnings outweighed geopolitical risks, leading to increased buying in tech stocks.
* This article has been translated by AI.
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