The Prime Daily: 22 July 2026

Authored By Prime Research | Published at: Jul 22, 2026 11:01 AM IST

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Chipmakers Fuel Market Comeback as Yields, Oil Surge

Wall Street snapped a three-day losing streak on Tuesday as a powerful rally in chipmakers lifted equity benchmarks.

The Nasdaq led the market’s gains with a 1.3% advance, while the S&P 500 rose 0.9% and the Dow Jones added 385 points.

Strong performances from industry stalwarts — Micron Technology surged 12%, and Sandisk also rallied sharply — drove the memory and chip sectors significantly higher, as investors piled back into beaten-down AI-linked names.

Industrial and automotive giants 3M and General Motors both reported quarterly results that outpaced analyst estimates. Alphabet reports second-quarter results today, with its $460 billion cloud backlog a key focus for investors.

U.S. exchanges such as Nasdaq are expected to post record volumes and profits, driven by geopolitical volatility and a rebound in IPO activity — even as regulatory concerns around crypto derivatives weigh on sentiment.

U.S. Treasury yields climbed to their highest levels since May, with the 10-year yield rising to 4.63% and the 30-year yield matching the pressure at 5.14%. The upward momentum follows a steep rise in global crude oil prices: Brent crude topped $92 a barrel amid an 11th consecutive night of U.S. strikes on Iran and Houthi threats of a naval blockade against Saudi Arabia.

The AI race between the U.S. and China continues to intensify amid signs the Trump administration could sanction China over AI model “theft,” while OpenAI ramps up preparations for a potentially massive initial public offering.

President Trump announced a major policy shift for the pharmaceutical sector: all generic drug imports will remain exempt from tariffs until 2028, after which they will face a 100% import duty. The tariff will subsequently be increased to 200%, as part of the administration’s strategy to reshore generic pharmaceutical manufacturing to the U.S.

Asia-Pacific markets opened firmer Wednesday, with South Korea’s Kospi surging over 5% to lead regional gains, the Kosdaq advancing 2%, and Japan’s Nikkei 225 inching up 0.34%.

The Indian rupee appreciated by 21 paise to close at 96.23 yesterday. Encouraging FCNR flow data released by the RBI boosted sentiment and drove the appreciation, while better-than-expected capital inflows, combined with a stable dollar, offered much-needed support to the currency.

Over the past five sessions, Nifty’s trading range has compressed to below 200 points, signalling a sharp drop in volatility to near-extremely low levels.

Despite the consolidation, the short-term trend remains positive as the index continues to trade above key averages. On the upside, immediate resistance is placed near 24,530, while 24,000 remains a key short-term support.

Indian markets are set to open marginally lower on concerns over higher crude oil prices.

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