Wall Street Rises on Semiconductor Bounce as Geopolitical Tensions Ease

On July 21, the Dow Jones Industrial Average gained 358.11 points (0.69%) to 52,197.37, the S&P 500 rose 58.11 points (0.69%) to 7,501.39, and the Nasdaq Composite added 316.86 points (1.24%) to 25,824.93. The Philadelphia Semiconductor Index (.SOX) climbed 4.6%, marking a second consecutive day of gains after ending the prior session more than 20% below its late-June record high. The chip gauge remains up nearly 72% year-to-date. Leading semiconductor issuers SanDisk, Western Digital and Micron Technology posted gains between 8.3% and 10.8%.

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A senior Iranian official told Reuters that Tehran had received a mediator-proposed 10-day ceasefire aimed at salvaging the interim deal on the Red Sea dispute. The development helped temper oil-price pressure; Brent crude futures jumped above $90 a barrel before the diplomatic signal limited further gains. Two oil tankers carrying Saudi crude to Asia reversed course after threats from Yemen’s Iran-aligned Houthis, underscoring the fragility of the region’s energy chokepoints.

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Investors turned their attention to upcoming earnings from Alphabet and Intel, seeking clues on the sustainability of the AI-driven rally.

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President Donald Trump unveiled 50 % tariffs on a wide range of imports from Canada and signaled additional tariffs on dozens of countries, with a 10 % global tariff set to expire on Friday. The tariff news sparked mixed reactions across sectors: 3M shares rose 9.2% after lifting its full-year profit forecast, while Danaher fell 13.7% following a trimmed revenue outlook, and MSCI dropped 8.9% after raising its operating-expense forecast.

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• “We expect further volatility in semiconductors as overbought conditions reset, profit-taking pressure emerges, and crowded positioning gets worked out,” — Adam Turnquist, chief technical strategist at LPL Financial

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• “It's not just about aggregate capEx numbers now. The next focus point is going to be return on investment and quality of spending, and we think that comes to the forefront in the second half,” — Adam Turnquist, chief technical strategist at LPL Financial

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