NEW YORK, July 20, 2026, 11:04 a.m. EDT — Wall Street starts the session with mixed trade.
- Technology stocks outperformed in late-morning trading as shares connected to the Dow declined.
- Based on the reported data, the chip sector’s Monday rebound clawed back roughly 9.9% of the losses sustained between the recent peak and Friday.
- Analyst forecasts for S&P 500 earnings growth stand at 26%, up from 19.2% recorded on April 1.
U.S. equities showed mixed performance Monday, with chipmaker shares bouncing back following last week’s selloff. However, the recovery offset only a limited portion of the industry’s losses.
This is significant as the profit expectations increased amid the decline. Analysts currently project S&P 500 earnings to grow 26% from a year ago, up from 19.2% on April 1. Of the first 49 companies to report, ninety percent surpassed estimates.
Nasdaq futures were ahead in pre-market action. Earlier gains in oil prices later faded. In regular trading, technology stocks remained strong, while the Dow moved down.
| Security | Price at 10:49 a.m. EDT | Session move | Immediate catalyst |
|---|---|---|---|
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $744.88 | +0.21% | Overall equities stabilize |
| Invesco QQQ Trust NASDAQ:QQQ | $699.81 | +0.64% | Tech sector outperforms |
| SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) | $519.38 | -0.28% | Blue chip stocks underperform |
| Alphabet NASDAQ:GOOGL | $356.94 | +2.93% | AI accelerator report Reuters |
| Advanced Micro Devices NASDAQ:AMD | $511.24 | +3.12% | Broader Microsoft NASDAQ:MSFT AI collaboration AP News |
| Tesla NASDAQ:TSLA | $373.69 | -1.88% | Q2 results on July 22 Tesla Investor Relations |
The Philadelphia Semiconductor Index rose 2.5% at the start of trading on Monday. On Friday, it finished the session down 20.2% from its all-time high reached on June 22.
Together, these movements put the gauge around 18.2% under its high. On Monday, about 9.9% of the decline from peak to Friday was regained. This reflects a rebound rather than a full reset.
Market breadth showed a slight positive tilt. On the NYSE, advancers outpaced decliners by a ratio of 1.14-to-1, while on Nasdaq, the ratio stood at 1.11-to-1. However, new lows surpassed new highs on the Nasdaq, 55 compared to 31.
Shares in Alphabet advanced after news broke of a fresh AI accelerator. AMD climbed as it expanded its cloud-AI collaboration with Microsoft. Tesla slipped ahead of its quarterly results.
Alphabet’s earnings call is scheduled for Wednesday at 4:30 p.m. EDT. Tesla will release its results after markets close and host a webcast at 5:30 p.m. Intel NASDAQ:INTC reports earnings Thursday following the closing bell.
“There’s just a little less room for error,” GuideStone Funds senior investment analyst Jack Herr said. He added that expectations have increased as the second half of the year begins. Reuters
Oil maintained significant macro pressure as Brent fluctuated between roughly $86 and $91, eventually changing hands at $88.17. The yield on the 10-year Treasury gained three basis points to 4.58%.
Lombard Odier chief economist Samy Chaar said that ensuring supply security will demand increased investment. “To secure anything, you’re going to have to put down the money,” he said. Reuters
Risks: A new escalation in the Gulf may send Brent back above $90. Rising yields risk squeezing technology sector valuations. Disappointing AI outlooks could trigger a renewed selloff in semiconductor stocks, similar to Friday.
Reports due on Wednesday face added pressure beyond simply surpassing earnings expectations. Investors are also seeking proof that expenditures on AI are sustaining margins and cash flow. The chip index is still trading about 18% under its June high.
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