Nasdaq Jumps 0.73% to 25,693 as Chip Stocks Rebound; Dow and S&P 500 Gain on Strong Earnings Despite US-Iran Conflict

Mumbai, July 21: US stock markets opened higher on Tuesday, with the tech-heavy Nasdaq Composite (^IXIC) leading the charge, climbing 185.17 points or 0.73% to 25,693.25 in early trading. The S&P 500 (^GSPC) advanced 0.40% to 7,472.87, while the Dow Jones Industrial Average (^DJI) gained 0.22% to 51,953.09 at 9:47 AM EDT. The rally was driven by a sharp rebound in semiconductor stocks following last week’s sell-off, coupled with better-than-expected earnings from major corporates, even as tensions in West Asia continued to escalate and oil prices remained elevated.

Semiconductor Stocks Stage Powerful Recovery Led by Memory Chipmakers

Chip stocks, which have been the primary drivers of Wall Street’s rally this year, staged a significant recovery after last week’s sharp correction. The VanEck Semiconductor ETF (SMH) gained over 4% in early trading, with memory chipmakers leading the sector-wide bounce. Micron Technology (MU) surged 8.05%, while Western Digital (WDC) jumped 8.66% and SanDisk (SNDK) soared 10.14% on the S&P 500. Intel (INTC) advanced 6.04%, AMD (AMD) gained 4.72%, and Applied Materials (AMAT) rose 6.62% as investors appeared to take advantage of lower valuations after the sector suffered its worst weekly decline in more than a year. The iShares Semiconductor ETF (SOXX) climbed over 4%, rising for the second consecutive day. SK Hynix’s New York-listed shares were up over 6% in early trading.

Nvidia’s 9.3% Stake in Nebius Group Sends NBIS Soaring

Nvidia (NVDA) shares climbed 1.76% after the AI chipmaker revealed it has taken a 9.3% passive stake in neocloud provider Nebius Group (NBIS). According to a new Nvidia filing on Monday, the semiconductor giant beneficially owns 22.25 million Class A ordinary shares of Nebius. The disclosure sent Nebius shares surging nearly 7% in premarket trading to around $194.90. The stock has roughly doubled year-to-date and has gained nearly 250% over the past 12 months, lifting its market capitalisation to approximately $46 billion. The market interpreted Nvidia’s stake disclosure as strengthening Nebius’s ability to expand AI data centres and secure advanced GPU supplies.

3M Shares Surge 9% on Strong Q2 Results and Raised FY2026 Guidance

3M Company (MMM) shares jumped over 9% after the industrial conglomerate reported better-than-expected second-quarter earnings and raised its full-year profit outlook. The company posted adjusted earnings of $2.40 per share on revenue of $6.5 billion, comfortably exceeding Wall Street estimates of $2.25 per share on $6.41 billion revenue. Organic sales grew 5.4% year-over-year, while adjusted operating margins approached 25%. CEO William Brown stated that the company delivered a strong second quarter exceeding expectations, with mid-single-digit sales growth and double-digit EPS growth. 3M raised its full-year 2026 adjusted EPS guidance to $8.80-$8.95, up from the previous range of $8.50-$8.70 and ahead of the analyst consensus of $8.74.

General Motors Beats Estimates, Raises FY2026 EBIT Guidance

General Motors (GM) shares rose over 2% after the automaker posted second-quarter results that topped expectations and raised its full-year guidance for the second time this year. The company reported adjusted earnings of $3.57 per share on revenue of $48.03 billion, surpassing analyst estimates of $3.20 per share on $47.01 billion revenue. Revenue grew 1.9% year-over-year, marking the first year-over-year growth since the first quarter of 2025. GM raised its full-year adjusted EBIT guidance to $14.0 billion-$16.0 billion (up from $13.5 billion-$15.5 billion) and adjusted EPS to $12.00-$14.00 (up from $11.50-$13.50). CEO Mary Barra noted that customer demand in North America remains strong, driven by the company’s lineup of pickups and SUVs, with North American EBIT-adjusted margins improving by 2.5 percentage points year-over-year.

Danaher Shares Plunge 14% Despite Earnings Beat on Cautious Revenue Outlook

Danaher Corporation (DHR) shares tumbled over 14% in early trading after the life sciences and diagnostics firm issued cautious revenue guidance that overshadowed better-than-expected quarterly results. The company reported adjusted earnings of $1.94 per share on revenue of $6.3 billion, beating analyst estimates of $1.84 per share on $6.1 billion revenue.

However, Danaher said it expects core revenue to increase by only 2% to 3% year-over-year in the third quarter and 3% to 4% for the full year, well below analyst expectations of 5.4% and 4.4% respectively. CEO Rainer Blair acknowledged continued end-market recovery but noted the company expects to exit 2026 at a mid-single-digit core revenue growth rate. Despite raising its full-year adjusted EPS guidance to $8.45-$8.60 from $8.35-$8.55, the weaker-than-expected revenue outlook weighed heavily on investor sentiment.

Halliburton Falls Despite Earnings Beat as Geopolitical Risks Weigh

Halliburton Company (HAL) shares fell modestly in early trading despite reporting better-than-expected second-quarter earnings. The oil services firm’s results were overshadowed by escalating US-Iran tensions and rising crude oil prices, which have created uncertainty for energy-sector companies. Halliburton’s stock moved back toward its 200-day moving average as investors weighed the impact of geopolitical risks on the company’s operations and outlook.

Equifax Plunges 12% on Weaker-Than-Expected Annual Profit Forecast

Equifax Inc. (EFX) shares dropped over 12% after the credit ratings firm forecast annual profit below estimates. The company’s cautious outlook weighed on investor sentiment, despite the broader market’s positive tone. Equifax’s decline made it one of the worst-performing stocks in early trading, reflecting concerns about consumer credit trends and the economic impact of rising energy prices and geopolitical uncertainty.

Utz Brands Soars 85% on $2.9 Billion Take-Private Deal with Intersnack

Salty snacks maker Utz Brands (UTZ.N) saw its shares surge approximately 85% in premarket trading after the company agreed to be acquired by Germany’s Intersnack Group in a deal valued at about $2.9 billion, including debt. Intersnack, a private family-founded snack company, said it would buy all outstanding shares of Utz Brands for $14.25 per share in cash, representing a premium of 91.3% to Utz’s last closing price. Following the deal’s completion, Intersnack and the Rice and Lissette family entities, descendants of Utz’s founding family, will each own 50% of the company. Utz shares were trading at $13.98 before the bell.

Tempus AI Agrees to Acquire Personalis in $1.5 Billion All-Stock Deal

Tempus AI (TEM) announced it has entered into a definitive agreement to acquire cancer-monitoring company Personalis (PSNL) in a deal valued at $1.5 billion. The transaction is structured as an all-stock deal, with Tempus acquiring Personalis for $16.25 per share. The acquisition is expected to close in late 2026 or early 2027. Needham noted that the transaction offers a premium significantly higher than comparable industry deals. Tempus shares fell over 7% in early trading, while Personalis shares dropped more than 14%.

Paramount Skydance’s $110 Billion Warner Bros. Discovery Merger Paused by US Judge

A US federal judge has ordered Paramount Skydance (PSKY) to pause its proposed $110 billion acquisition of Warner Bros. Discovery (WBD) until 3 August, citing concerns over reduced market competition. The ruling prevents the massive media merger from closing as originally planned, with the deal having been scheduled for completion as early as 22 July. Both Paramount Skydance and Warner Bros. Discovery shares closed lower on Monday following the judge’s decision.

B&R Technology Merger Corp. Prices $325 Million IPO on Nasdaq

B&R Technology Merger Corp. announced the pricing of its initial public offering of 32,500,000 units at $10.00 per unit, raising $325 million. The units began trading on the Nasdaq Global Market on 21 July 2026 under the symbol ”BRTMU”. Each unit consists of one Class A ordinary share and one-third of one warrant, with each whole warrant entitling the holder to purchase one Class A ordinary share at an exercise price of $11.50 per share. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed under the symbols “BRTM” and “BRTMW,” respectively. Citigroup Global Markets Inc. is acting as sole bookrunner.

Southern Cross Acquisition I Corp. Prices $100 Million IPO on Nasdaq

Southern Cross Acquisition I Corp. priced its initial public offering of 10,000,000 units at $10.00 per unit, raising $100 million. The units began trading on the Nasdaq Global Market on 21 July 2026 under the symbol ”NCOOU”. Each unit consists of one ordinary share, one redeemable warrant, and one right to receive one-fourth of one ordinary share upon consummation of an initial business combination. Each whole redeemable warrant entitles the holder to purchase one ordinary share at an exercise price of $11.50 per share. Once the securities begin separate trading, the ordinary shares, warrants and rights are expected to be listed under “NCO,” “NCOOW,” and “NCOOR,” respectively. D. Boral Capital LLC is acting as sole book-running manager.

US-Iran Conflict Enters 10th Day as Oil Prices Surge Above $91

Geopolitical tensions continued to escalate as the US carried out its 10th consecutive night of strikes on Iran after President Donald Trump declared the ceasefire “over”. Iranian forces have struck US military assets across the Middle East, while Iran-backed Houthi rebels in Yemen announced plans to blockade Saudi Arabia’s ports, potentially further disrupting global energy markets. Reports also suggested that Iran targeted US technology infrastructure, including an alleged attack on Amazon’s data centre in Bahrain.

Brent crude futures traded above $91 per barrel on Tuesday, gaining over 2% and reaching their highest level since 12 June. West Texas Intermediate (WTI) crude futures rose approximately 2.2% to around $85 per barrel. Oil prices had surged during Monday’s session after Trump warned that Tehran would “pay” for the deaths of three US service members. The renewed hostilities have pushed Brent crude above the $90-a-barrel mark for the first time in over a month, with prices now well above the roughly $72 per barrel level seen before the war started in late February.

Mediation Efforts and Ceasefire Hopes Provide Some Relief

Despite the ongoing conflict, reports emerged that mediators are proposing a 10-day ceasefire between the US and Iran. A senior Iranian official told Reuters on Monday that Tehran had received the proposal. Investors latched on to hopes of a diplomatic resolution, which helped temper some of the geopolitical risk premium in oil prices. However, with both sides continuing to exchange attacks and the Strait of Hormuz blockade disrupting shipping traffic, there are few signs that the conflict will ease anytime soon. The blockade has tightened crude oil and natural gas supplies to several Asian countries, adding to concerns over global energy security.

Morgan Stanley Downgrades Adobe, Salesforce, and Intuit on Execution Risks

Morgan Stanley unleashed a barrage of downgrades on enterprise software stocks after new lead analyst Adam Wood took charge. Adobe (ADBE) was cut to sell from hold, with analysts citing execution risk from leadership and business model transitions. Salesforce (CRM) was downgraded to hold from buy on concerns that an Agentforce inflection would not happen soon enough to offset weakness in legacy products. Intuit (INTU) was also moved to hold from buy, with analysts noting it would take time for investors to gain confidence in a reacceleration. However, Morgan Stanley kept Microsoft (MSFT) at a buy rating, arguing that cloud unit Azure and AI assistant Copilot are both set to inflect, with the degree of that inflection “not well reflected by the market”.

Wells Fargo bumped up its price target on Amazon (AMZN) to $322 from $313. The analysts mentioned that costs are going up but still said the e-commerce and cloud giant can pass costs on in the cloud. Amazon is set to report earnings next week.

Raymond James upgraded Ralph Lauren (RL) to hold from buy on increased confidence that the company can exceed Wall Street expectations for fiscal 2027. Susquehanna downgraded Live Nation (LYV) to hold from buy, noting that the stock has rallied 27% so far this year and that at current levels, a lot of that good news is already baked into the stock, leaving “little room for error” in the third quarter.

Tech Giants Set to Report: Alphabet, Tesla, and IBM in Focus This Week

Investors are now turning their attention to a pivotal stretch of Big Tech earnings reports later this week. Alphabet (GOOGL) , Tesla (TSLA) , and IBM are scheduled to report their quarterly results, with market participants closely watching management commentary on artificial intelligence investments, consumer demand, and the broader economic outlook. Intel (INTC) is also set to report earnings after the closing bell on Thursday, with traders anticipating a potential swing of up to 12% in either direction based on recent options pricing. Of the roughly 66 S&P 500 companies that have reported so far, 88% have topped bottom-line estimates, according to FactSet.

Treasury Yields and Dollar Index Edge Higher

The 10-year Treasury yield, which influences interest rates on consumer loans including mortgages, was near 4.62%, up two basis points from Monday’s close. The US dollar index, which tracks the greenback against a basket of foreign currencies, ticked higher to 101.05. Gold futures rose 1.1% to $4,060 an ounce as investors sought safe-haven assets amid geopolitical uncertainty. Bitcoin was trading around $66,400, up from overnight lows around $65,000.

The early trading session on 21 July 2026 saw US equities advance, led by a recovery in semiconductor stocks and strong corporate earnings from 3M and General Motors. However, escalating US-Iran tensions kept oil prices elevated above $91 per barrel, while Danaher’s cautious revenue outlook triggered a sharp sell-off in its shares. Investors are now focused on upcoming earnings from Alphabet, Tesla, and IBM later this week.

Source

• https://www.nasdaq.com/

• spglobal.com/spdji/en/indices/equity/sp-500/

• https://www.dowjones.com/