US Stocks Close Higher: Chip Stocks Surge, SOX Jumps Over 5%, Micron and SK Hynix ADRs Soar More Than 12%

US stocks closed sharply higher on Tuesday (21st), driven by a powerful rebound in semiconductor and memory stocks, with the Philadelphia Semiconductor Index surging over 5%. Investors temporarily set aside concerns over escalating US-Iran tensions and rising oil prices, opting instead to buy beaten-down tech stocks ahead of major tech earnings reports later this week.

The Dow Jones Industrial Average rose over 385 points, the S&P 500 gained 0.89%, and the Nasdaq Composite climbed nearly 1.3%, ending a three-day losing streak for all three major indices.

According to FactSet, nearly 88% of the approximately 66 S&P 500 companies that have reported earnings so far have exceeded analyst profit expectations, indicating a strong start to the Q2 earnings season.

Upcoming earnings reports from heavyweight tech firms including Alphabet (GOOG-US)(GOOGL-US), IBM (IBM-US), and Tesla (TSLA-US) will be closely watched, particularly for insights into AI-related capital spending, profitability, and second-half outlooks.

Meanwhile, US trade policy continues to add uncertainty. President Trump announced on Monday that 50% tariffs would be imposed on a range of Canadian goods including dairy, alcohol, clothing, and furniture, effective in 30 days. The White House stated that energy, potash, and certain critical goods would be exempt from the new tariffs.

The US accused Canada of implementing "discriminatory" trade practices, and the new tariffs could reignite US-Canada trade tensions.

US-Iran hostilities remain a key market risk. The US Central Command conducted its 10th consecutive night of airstrikes against Iran, while Iran attacked US military facilities in the Middle East. Yemen's Houthi movement, allied with Tehran, also declared a maritime blockade on Saudi Arabia.

Brent crude briefly surpassed $91 per barrel, reaching its highest level since mid-June. Rising oil prices pushed up US Treasury yields, with the 10-year yield rising 3 basis points to 4.63%, a two-month high. Elsewhere, Bitcoin climbed above $66,000, its highest level since early June.

The Federal Reserve will announce its rate decision on July 29. With the central bank now in its pre-meeting blackout period and no major economic data due this week, corporate earnings and Middle East developments are expected to dominate near-term market movements.

US Stock Market Performance – Tuesday, July 21:

Dow Jones Industrial Average: +385.38 points (+0.74%) at 52,224.64 Nasdaq Composite: +329.13 points (+1.29%) at 25,837.21 S&P 500: +65.92 points (+0.89%) at 7,509.20 Philadelphia Semiconductor Index: +612.32 points (+5.21%) at 12,356.16 NYSE FANG+ Index: +178.84 points (+1.03%) at 17,459.73

Key Individual Stocks

Most of the major tech giants in the NYSE FANG+ Index closed lower. Meta (META-US) fell 0.32%; Apple (AAPL-US) rose 0.35%; Alphabet (GOOGL-US) dropped 1.38%; Microsoft (MSFT-US) declined 1.13%; Amazon (AMZN-US) fell 0.98%.

Philadelphia Semiconductor Index stocks broadly gained. AMD (AMD-US) surged 8.11%; Broadcom (AVGO-US) rose 2.21%; Nvidia (NVDA-US) gained 1.97%; Applied Materials (AMAT-US) jumped 7.39%; Qualcomm (QCOM-US) rose 1.87%; Micron (MU-US) soared 12.17%.

Taiwan-related ADRs rallied collectively. TSMC ADR (TSM-US) surged 5.55%; ASE ADR (ASX-US) jumped 8.43%; UMC ADR (UMC-US) rose 4.38%; Chunghwa Telecom ADR (CHT-US) gained 0.99%.

Company News

Strong export data from South Korea and Taiwan, coupled with market rumors that TSMC plans to raise certain foundry prices by up to 10% in 2027, further boosted semiconductor sector outlooks. TSMC ADR (TSM-US) rose 5.55% to $424.61 per share.

Intel confirmed further layoffs and a restructuring of its data center business. Additionally, reports emerged that Intel will manufacture next-generation chips for cybersecurity firm Fortinet (FTNT-US), sending Intel's stock up over 8% to $105.45 per share.

Memory and data storage stocks saw even sharper gains, with Micron (MU-US), SK Hynix ADR (SKHY-US), and SanDisk (SNDK-US) surging 12.17%, 13.75%, and 14.27% respectively.

AI cloud infrastructure firm Nebius Group (NBIS-US) jumped over 18% on Tuesday, closing at $216.92 per share. A recent regulatory filing from Nvidia revealed that its beneficial ownership in Nebius, including warrant-exercisable shares, reached 9.3%. The market interpreted this as a vote of confidence from the AI chip leader, sparking renewed investor interest in AI infrastructure stocks.

Corporate earnings also provided momentum. 3M (MMM-US) reported Q2 profits above expectations, sending its stock up over 7%. General Motors (GM-US) beat Wall Street estimates on both revenue and profit, driving its shares up nearly 5%.

Wall Street Analysis

Bret Kenwell, US Investment Analyst at eToro, stated that the next two weeks are critical for earnings, with implications extending beyond tech. As US stocks approach all-time highs, investor standards have risen sharply—companies failing to meet Wall Street's high bar are being punished, and even solid results may not be enough to sustain stock gains.

Sam Stovall, Chief Investment Strategist at CFRA Research, noted that the market remains in a wait-and-see mode. FactSet data shows Q2 earnings growth expectations have risen to 25%, but investors are concerned momentum may be peaking, and are awaiting results and guidance from Nvidia (NVDA-US), AMD (AMD-US), and other tech firms.

Goldman Sachs strategists expect corporate earnings growth to continue supporting US stocks in the second half of the year, but warn that elevated bullish positioning and macroeconomic headwinds could limit upside in the near term.

However, HSBC strategist Max Kettner advised investors to consider reducing equity exposure after the earnings season concludes. He warned that overly optimistic sentiment, fading fiscal stimulus, and uncertainty around the US midterm elections could trigger a pullback in US stocks.

(All figures are updated as of publication time; actual prices may vary)