NEW YORK, July 20, 2026, 12:03 p.m. EDT
- The Nasdaq Composite climbed 0.68%, while the S&P 500 advanced 0.34%.
- The Dow declined 0.22%, and the Russell 2000 was down 0.14%.
- The chip index rose 2.11%. Semiconductors are projected to contribute 44% of the S&P 500’s quarterly profit increase.
U.S. stocks showed mixed performance at midday on Monday as chip stocks recovered. The Nasdaq outperformed, whereas the Dow and small-cap indices declined. Regular cash markets stayed open.
At 11:52 a.m. EDT, the S&P 500 was at 7,483.07, while the Nasdaq Composite was at 25,694.67. The Dow was last at 52,032.10.
The action was limited in scope. The PHLX Semiconductor Index gained 2.11%, advancing at nearly six times the rate of the S&P. The Russell 2000 stayed in negative territory.
| Market gauge | Last | Day move |
|---|---|---|
| PHLX Semiconductor Index | 11,920.17 | up 2.11% |
| Nasdaq Composite | 25,694.67 | added 0.68% |
| S&P 500 | 7,483.07 | gained 0.34% |
| Russell 2000 | 2,957.95 | slipped 0.14% |
| Dow Jones Industrial Average | 52,032.10 | fell 0.22% |
This division is clarified by the earnings outlook. Semiconductor profits are projected to climb 133% over the same quarter last year, with the sector potentially accounting for 44% of the S&P 500’s entire earnings growth.
The overall index is forecast to achieve earnings growth of 26%. Nearly half of this increase depends on a single industry group, making any disappointing forecast especially costly.
Chip stocks continue to post substantial gains. The SOX has risen 65% this year, compared with a 9.31% increase for the S&P 500. However, it is still off roughly 18% in July.
Six out of the opening 12 sessions in July saw swings of three percent or more. Earnings are expected to meet lofty expectations.
“There’s just a little less room for error in the market at this point,” said Jack Herr, senior investment analyst with GuideStone Funds. Expectations remain elevated. Reuters
Memory stocks drove gains on Monday, with Micron Technology NASDAQ:MU and SanDisk NASDAQ:SNDK each climbing over 4%. Advanced Micro Devices NASDAQ:AMD and Intel NASDAQ:INTC recorded increases as well.
| Stock | Last price | Day move |
|---|---|---|
| Micron Technology | $888.32 | up 4.64% |
| SanDisk | $1,423.89 | up 5.10% |
| Advanced Micro Devices | $514.18 | up 3.71% |
| Intel | $98.26 | up 3.39% |
Later this week, Alphabet NASDAQ:GOOGL, Intel, and Texas Instruments NASDAQ:TXN are set to announce results. Nvidia NASDAQ:NVDA will release its report in late August. These updates will provide insight into current spending and demand expectations.
Taiwan Semiconductor Manufacturing NYSE:TSM highlighted the market’s heightened expectations last week. Its U.S. stock declined even after reporting a 77% surge in quarterly net profit. Robust earnings still failed to satisfy investors.
“The size of the daily swings for companies of this scale is surprising,” said Rick Meckler, partner at Cherry Lane Investments. An underwhelming outlook could have greater significance. Reuters
The cost of protection decreased as markets recovered. The Cboe Volatility Index declined by 4.69% to 17.89, indicating relatively modest interest in short-term hedging.
Oil and interest rate risks continue to dominate. New Middle East supply concerns could stoke inflation worries. Rate markets continued to price in a 15% likelihood of a Federal Reserve hike in July.
Investors seek direction beyond companies simply surpassing earnings expectations. The chipmakers’ recovery depends on whether investment plans can sustain that 44% share of profits.
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