Nasdaq Surges 1.29% to 25,837 as Chip Stocks Rally; Dow, S&P 500 Snap Three-Day Losing Streak

Mumbai, July 22: US stock markets closed higher on Tuesday, with the tech-heavy Nasdaq Composite (^IXIC) leading gains, as semiconductor shares staged a powerful recovery and investors looked past escalating geopolitical tensions to focus on a robust start to the second-quarter earnings season. The Nasdaq Composite advanaced 329.13 points, or 1.29%, to settle at 25,837.21, while the Dow Jones Industrial Average (^DJI) climbed 385.56 points, or 0.74%, to 52,224.82. The S&P 500 (^GSPC) added 65.92 points, or 0.89%, closing at 7,509.20, snapping a three-session losing streak that had weighed on broader market sentiment. 

Chip Stocks Power Broader Market Recovery Amid AI Optimism 

The rally was predominantly driven by a sharp rebound in semiconductor stocks, which had experienced significant selling pressure in recent weeks amid valuation concerns and profit-taking. The VanEck Semiconductor ETF (SMH) surged 4%, while the iShares Semiconductor ETF (SOXX) added 5.5%, as investors returned to the sector ahead of key technology earnings due later this week. 

Among the standout performers, Micron Technology (MU) jumped 12.02% to close at 970.82, leading memory chip stocks higher. Western Digital (WDC) advanced 12.56%, Seagate Technology (STX) gained 11.15%, and Sandisk (SNDK) surged 14.27% to 1,589.40. The Roundhill Memory ETF (DRAM) climbed 11%, reflecting strong appetite for companies exposed to the artificial intelligence infrastructure buildout. 

Advanced Micro Devices (AMD) rose 8.12%, Intel (INTC) gained 8.63%, and Marvell Technology (MRVL) advanced 6.74%. Intel’s shares received additional support following news that the chipmaker would manufacture Fortinet’s (FTNT) next-generation cybersecurity chips, reinforcing its foundry ambitions. 

Nvidia (NVDA), the bellwether of the AI trade, climbed 1.98% after revealing a significant strategic investment in AI infrastructure provider Nebius Group (NBIS). The disclosure sent Nebius shares soaring 18.78% to 216.92, making it one of the top gainers on the Nasdaq. 

Nebius Group Soars 19% as Nvidia Discloses 9.3% Strategic Stake 

Amsterdam-based AI computing infrastructure provider Nebius Group (NBIS) emerged as a major beneficiary of Tuesday’s rally after Nvidia (NVDA) disclosed in a regulatory filing that it had built a 9.3% stake in the company. The filing provides investors with greater visibility into Nvidia’s exposure to Nebius, which has grown into a leading provider of AI computing capacity in Europe. 

Shares of Nebius have climbed nearly 250% over the past year, giving the company a market capitalisation of approximately $46 billion. Nvidia had previously announced plans to invest $2 billion in Nebius, with the two companies collaborating on deploying AI infrastructure, fleet management, and the architecture of inference and data centres. 

The partnership is expected to help Nebius access critical hardware and technical assistance as demand for large-scale AI systems continues to grow. Meta Platforms (META) has also committed to investing up to $27 billion in corporate infrastructure through a long-term contract with Nebius, further validating the company’s position in the AI ecosystem. 

3M Surges 7% After Strong Q2 Results and Raised Full-Year Guidance 

3M (MMM) shares jumped 7.32% to 170.76, making it the top performer on the Dow Jones Industrial Average, after the industrial conglomerate reported second-quarter results that exceeded Wall Street expectations and lifted its full-year earnings guidance. 

The St. Paul, Minnesota-based company reported adjusted earnings of $2.40 per share on net sales of $6.5 billion, surpassing analyst estimates of $2.25 per share and $6.41 billion, respectively. Organic sales growth came in at 5.4%, while adjusted operating margin reached 24.9%, both above consensus forecasts. 

For the full year, 3M raised its adjusted EPS guidance to a range of $8.80 to $8.95, up from the previous outlook of $8.50 to $8.70 per share. CEO William Brown attributed the strong performance to “mid-single-digit sales growth, robust operating margins of about 25%, and double-digit EPS growth, reflecting the progress we’re making on our strategic priorities.” 

Also Read: How to invest in US stocks  

General Motors Beats Estimates, Raises EBIT Guidance Amid Strong North American Demand 

General Motors (GM) shares rose 5% after the automaker reported better-than-expected second-quarter results and raised its full-year profit forecast for the second time this year. The Detroit-based company posted adjusted earnings of $3.57 per share on revenue of $48.03 billion, surpassing analyst expectations of $3.20 per share and $47.01 billion, respectively. 

The company’s adjusted EBIT came in at $3.94 billion, compared to consensus estimates of $3.7 billion. This represents a significant improvement from the $3 billion reported in the second quarter of 2025, which had been heavily weighed down by tariff costs that are now easing as tariff offsets take hold. 

For the full year, GM raised its adjusted EBIT guidance to $14.0 billion – $16.0 billion, up from the previous range of $13.5 billion – $15.5 billion. Adjusted EPS guidance was also increased to $12.00 – $14.00, compared to the prior outlook of $11.50 – $13.50. 

CEO Mary Barra noted that “customer demand in North America remains strong driven by our very attractive lineup of pickups and SUVs,” adding that the company’s North American EBIT-adjusted margin of 8.6% was up 2.5 percentage points from a year ago. 

Hasbro Jumps 7.5% as Magic: The Gathering Hits Record Quarterly Revenue 

Hasbro (HAS) shares surged 7.5% after the gaming company reported strong second-quarter results driven by record-breaking performance from its Magic: The Gathering franchise. The Pawtucket, Rhode Island-based company reported adjusted earnings of $1.28 per share on revenue that rose 16% year-over-year to $1.14 billion, exceeding analyst expectations of $1.14 per share and $1.07 billion, respectively. 

Magic: The Gathering generated $545.3 million in revenue, up 32% from the same period last year and marking the first time the franchise has exceeded $500 million in quarterly revenue. CEO Chris Cocks credited the “record-breaking debut of ‘Marvel Super Heroes'” for the strong performance. 

Hasbro raised its full-year guidance, now expecting 2026 revenue growth of 5% to 7% in constant currency, up from the previous forecast of 3% to 5%. Adjusted operating margin guidance was increased to 25% to 26%, while adjusted EBITDA was raised to $1.45 billion to $1.50 billion. 

Danaher Plunges 11% on Cautious Revenue Outlook Despite Earnings Beat 

Danaher (DHR) shares plummeted 11.03% to 178.93, making it the worst performer on the S&P 500, after the life sciences and diagnostics company issued cautious revenue guidance that disappointed investors despite second-quarter results that topped estimates. 

The Washington-based company reported adjusted earnings of $1.94 per share on revenue that increased 5.5% year-over-year to $6.3 billion, surpassing analyst expectations of $1.84 per share and $6.1 billion, respectively. However, the company projected third-quarter core revenue growth of 2% to 3% and full-year core revenue growth of 3% to 4%, both falling short of analyst estimates of 5.4% and 4.4%, respectively. 

CEO Rainer Blair noted that “continued end-market recovery and traction from our recent growth initiatives support our expectation to exit 2026 at a mid-single-digit core revenue growth rate,” but the weaker-than-expected guidance outweighed the quarterly beat. 

Oil Prices Climb to Five-Week High on US-Iran Tensions 

Oil prices rose to their highest level since mid-June as escalating US-Iran tensions and threats from Iran-backed Houthi militants raised fears of supply disruptions. WTI crude gained 2.1% to $85 per barrel, while Brent crude advanced 2.5% to around $91.50. Concerns over shipping risks in the Red Sea and continued disruptions around the Strait of Hormuz added to supply worries. 

Treasury Yields Hit Two-Month High 

US Treasury yields climbed to two-month highs as higher oil prices fuelled inflation concerns. The 10-year Treasury yield rose to 4.63%, while the 30-year yield reached 5.14%. Investors reassessed Federal Reserve policy expectations, with rising energy costs increasing the likelihood that interest rates could remain elevated for longer, potentially pressuring equity valuations. 

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Bitcoin Jumps Above $66,000 as Regulatory Optimism Boosts Crypto Sentiment 

Bitcoin climbed more than 2% to around $66,600, its highest level since early June, as regulatory optimism and strong institutional demand lifted sentiment. The rally was supported by two consecutive weeks of net inflows into spot Bitcoin ETFs. Positive momentum also followed comments from US Treasury Secretary Scott Bessent that lawmakers are close to passing the Clarity Act, a key step toward a clearer regulatory framework for digital assets. Despite recent geopolitical tensions and broader market volatility, Bitcoin has remained resilient. 

AI-Related Debt Issuance Surges to $489 Billion in 2026, Goldman Sachs Reports 

AI-related debt issuance has surged to $489 billion so far in 2026, far surpassing the full-year 2025 total, as companies across the sector increasingly turn to credit markets to finance their expansions, according to a report from Goldman Sachs. 

Across investment-grade credit and leveraged finance markets, AI-related issuance has exceeded the bank’s full-year 2025 estimate of $322 billion. Hyperscalers including Meta (META) and Microsoft (MSFT) have captured much of the attention, but issuance has become widespread across software, PCs, data centre financing, and other sectors. 

Goldman analyst Amanda Lynam noted that ”as this multi-year investment cycle continues, we expect AI-related debt issuance to increase across a range of markets.” Investment-grade credit accounted for $411 billion of AI-related issuance, representing 23% of total IG issuance, while leveraged finance issuance has crossed $77 billion. 

Alphabet and Tesla to Report Earnings Wednesday as Mag 7 Results Take Centre Stage 

Investor attention now turns to key technology earnings due later this week, with Alphabet (GOOG, GOOGL) and Tesla (TSLA) both set to report results after the closing bell on Wednesday. These reports will provide crucial insights into the state of the artificial intelligence trade and corporate spending trends. 

Analysts expect the search and cloud computing giant to have had another strong quarter, with revenue projected to increase approximately 20%, driven by a 65% increase in cloud revenue. The report will set expectations for cloud computing competitors and fellow Magnificent Seven members Microsoft and Amazon, both scheduled to report next week. 

The Magnificent Seven stocks—Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta, and Tesla—have grown faster than the rest of the S&P 500 in every quarter since the end of 2022. Estimates suggest second-quarter earnings for the group grew approximately 31%, a slowdown from 63% in the first quarter but still ahead of the Other 493’s 23% growth. 

Trade Representatives Hint at New Tariffs as US-Canada Trade Tensions Escalate 

US Trade Representative Jamieson Greer hinted that new tariffs against a slew of countries could be on the way, telling CNBC’s “Squawk Box” that he expects “to see some action soon.” The comments came after President Donald Trump announced 50% tariffs on an array of Canadian goods, including beer, hockey sticks, milk, and chemicals, which are expected to take effect in 30 days. 

Trade lawyers said businesses should treat the tariffs as a credible possibility, with Andrew Siciliano, head of trade at KPMG, noting that ”thirty days is a very short timeframe in supply chain planning.” The White House exempted Canadian oil imports from the tariffs, which come as crude oil prices trade at their highest level since mid-June. 

Earnings Season Off to Strong Start as S&P 500 Companies Beat Estimates 

The second-quarter earnings season is off to a strong start, with approximately 66 S&P 500 companies having reported results so far. According to FactSet, nearly 88% of companies have topped bottom-line estimates, signalling robust corporate profitability despite broader macroeconomic uncertainties. 

Analysts noted that the burden of proof has changed for companies reporting results. Bret Kenwell, US investment analyst at eToro, observed that ”companies that fail to clear Wall Street’s elevated bar are being punished,” adding that “the broader message is already clear: good results are not always good enough” after the market’s run to record highs. 

The next two weeks are expected to be a defining stretch for earnings, with major technology companies scheduled to report results that will provide crucial insights into the sustainability of the AI-driven market rally. 

Also Read: Dow Jones Plunges 307.16 Points as AI Chip Selloff and Iran Tensions Weigh on Wall Street

Market Breadth and Sector Performance 

Of the 30 stocks in the Dow Jones Industrial Average, 21 advanced, with 3M (MMM), UnitedHealth Group (UNH), and Caterpillar (CAT) leading gainers. The technology sector was the best-performing sector on the S&P 500, supported by the chip stock rally. Financials also performed well, with Citigroup (C) rising 3.18% and Goldman Sachs (GS) gaining 2.90%. 

Decliners on the S&P 500 were led by Danaher (DHR) , down 11.03%, followed by MSCI Inc (MSCI) , which fell 10.35% to 560.44, and Tenable Holdings (TENB) , which declined 9.72% to 34.09. 

SPAC Activity Continues as B&R Technology and Southern Cross Acquisition Raise $425 Million 

Two special purpose acquisition companies made their debuts on the Nasdaq Global Market on Tuesday, collectively raising $425 million in gross proceeds. B&R Technology Merger Corp (BRTMU) priced 32.5 million units at $10.00 each, raising $325 million, while Southern Cross Acquisition I Corp (NCOOU) priced 10 million units at $10.00 each, raising $100 million. 

B&R Technology, headquartered in Las Vegas, plans to target high-growth technology enterprises poised to benefit from AI tailwinds, with a 24-month window to complete its initial business combination. Southern Cross Acquisition, based in New York, is adopting a generalist search strategy but explicitly notes that management’s significant ties to China could steer its focus toward opportunities in mainland China, Hong Kong, and Macau, operating under a 12-month deadline to finalise a deal. 

The concurrent listings bring the total number of SPAC IPOs priced in the United States during 2026 to 130, underscoring sustained appetite for alternative public listings despite an evolving interest rate environment. 

With the Nasdaq Composite at 25,837.21 and the S&P 500 at 7,509.20, markets remain focused on the AI-driven semiconductor rally and upcoming technology earnings. A strong start to the second-quarter earnings season, with 88% of S&P 500 companies beating profit estimates, highlights resilient corporate earnings. However, higher oil prices ($85 WTI) and rising Treasury yields (4.63%) could weigh on equities. Market direction will depend on major tech earnings, US-Iran developments, and the impact of rising costs on corporate margins. 

Source 

• https://www.nasdaq.com/ 

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

• https://www.dowjones.com/