NEW YORK, July 20, 2026, 09:03 EDT.
- Futures for the Nasdaq 100 rose 0.92%, while S&P 500 futures gained 0.47% and Dow futures were up 0.23%.
- An index comprising five chip and storage stocks rose 3.5% on average, according to prices at 08:35 EDT.
- Semiconductor companies are expected to contribute 44% of S&P 500 earnings growth for the second quarter.
The U.S. cash market stayed shut, with standard trading scheduled to begin at 09:30 EDT. Futures climbed following a steep decline in technology shares last week. The Nasdaq 100 rose at a pace four times greater than the Dow.
The division holds greater significance than the overall increase. Shares of Micron Technology NASDAQ:MU, Advanced Micro Devices NASDAQ:AMD, Western Digital NASDAQ:WDC, Intel NASDAQ:INTC and Nvidia NASDAQ:NVDA posted an average premarket climb of 3.5%. This figure is around seven times higher than the movement in S&P futures.
The recovery thus stays focused. Investors are purchasing shares with the greatest exposure to AI spending, instead of driving up the broader market.
According to data from London Stock Exchange Group LON:LSEG, semiconductor sector profits increased 133% from a year earlier. The sector is projected to account for 44% of the S&P 500’s total earnings growth. Analysts expect overall profits for the index to climb 26%.
Futures indicated at 08:31 EDT:
| Contract | Level | Point move | Percentage move |
|---|---|---|---|
| Dow E-mini | 52,495.00 | up 120.00 | up 0.23% |
| S&P 500 E-mini | 7,530.00 | up 35.25 | up 0.47% |
| Nasdaq 100 E-mini | 29,033.25 | up 265.00 | up 0.92% |
Quoted prices are for indication only and might not match those on the exchange.
The bounce is clarified by Friday’s finish. The Dow slipped 0.77%, with the S&P 500 down 1.01%. The Nasdaq Composite declined 1.40%.
The Philadelphia semiconductor index closed 20.2% under its June peak and has dropped over 18% so far in July. However, it still stands almost 65% higher since the start of the year.
“The daily moves for companies this big are just shocking,” said Rick Meckler, partner at Cherry Lane Investments. He added that disappointing guidance has the potential to alter the earnings outlook. Reuters
Alphabet NASDAQ:GOOGL, Tesla NASDAQ:TSLA, and International Business Machines NYSE:IBM are scheduled to release earnings this week. Intel is set to announce results as well. Their forecasts may determine if the chip recovery continues.
Alphabet’s budget signals broad implications. A cut to scheduled AI spending might weigh on hardware providers and data-centre firms.
There was scant reprieve in bond markets. The yield on the U.S. 10-year Treasury hovered close to 4.55%, and the 30-year rate climbed above 5%. Such levels set a higher hurdle for earnings among richly valued tech stocks.
Brent crude touched $90 amid renewed shipping worries near the Strait of Hormuz. Prices eased afterward on news of potential diplomatic efforts.
Fed funds futures indicated an approximately 12% probability of a rate hike in July, with the implied likelihood for September at around 53%. June’s leading indicators are set for release at 10:00 EDT, with few other major events scheduled for the morning.
Away from the tech sector, Domino’s Pizza NASDAQ:DPZ rose nearly 6.5%. The company reported quarterly revenue of $1.19 billion, surpassing forecasts of $1.18 billion. Earnings were $4.07 per share, falling short of analyst projections.
Risks: Oil prices may rebound if conditions worsen in the Strait of Hormuz. Higher yields and leveraged chip investments could amplify the impact of any earnings shortfall.
The premarket outlook remains limited. Investors are moving back into the sector that is projected to drive the majority of profit gains. Sustained momentum would need that strength to extend past semiconductors.
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