NEW YORK, July 21, 2026, 12:05 p.m. EDT – US stocks moved higher as the chip index climbed 4.9%, but trading showed uneven breadth.
- The Nasdaq rises 1.29%, with the S&P 500 climbing 0.81%
- The semiconductor index gains at a pace roughly six times quicker than the S&P
- The number of new lows on the Nasdaq is nearly triple that of new highs
U.S. equities advanced at midday on Tuesday, with semiconductor shares driving gains. The Nasdaq Composite climbed 1.29% to 25,837.24, while the S&P 500 increased 0.81% to 7,503.75.
This move is significant as semiconductor stocks drove the gains. The PHLX Semiconductor Index climbed 4.90%, roughly six times higher than the S&P’s advance.
The rebound did little to reverse previous losses. Tuesday’s gain clawed back roughly 20% of the index’s decline from its June 22 record through Monday. The chip index remained down nearly 16% from that high.
Market breadth remained mixed. On the Nasdaq, advancing shares led decliners by a ratio of 1.47 to one. However, there were 64 stocks hitting new lows, while 22 reached new highs.
The disparity acts as today’s cue for investors. Data indicates that buyers are initially focusing on the largest AI-related declines. There is still no indication of a widespread shift back to riskier assets.
The most recent data was collected from 11:48 a.m. to 12:03 p.m. EDT.
| Benchmark | Level | Daily change |
|---|---|---|
| PHLX Semiconductor Index | 12,318.99 | up 4.90% |
| Nasdaq Composite | 25,837.24 | rises 1.29% |
| Russell 2000 | 2,973.05 | gains 1.04% |
| S&P 500 | 7,503.75 | adds 0.81% |
| Dow Jones Industrial Average | 52,221.77 | up 0.74% |
Shares in memory and storage companies were at the forefront of the rebound. Micron Technology NASDAQ:MU advanced 10.2% to $953.95. SanDisk NASDAQ:SNDK gained 11.3% to $1,548.55.
Western Digital NASDAQ:WDC rose 11.7% to $544.59, while Nvidia NASDAQ:NVDA was up 1.4% at $206.13. The difference left the recovery focused on memory and storage.
Software stocks headed lower. Adobe NASDAQ:ADBE dropped 2.7%, Workday NASDAQ:WDAY declined 3.2% and Salesforce NYSE:CRM decreased 2.1%.
Morgan Stanley NYSE:MS lowered its ratings and price targets, prompting the moves. The differing reactions indicated investors continued to be discerning in the technology sector.
Alphabet NASDAQ:GOOGL and Intel NASDAQ:INTC are scheduled to publish results later this week. Market watchers are expected to pay attention to capital expenditure, incoming orders and profit margins.
Art Hogan, chief market strategist at B. Riley Wealth, stated that the recovery still requires validation. “We need to hear from hyperscalers like Alphabet reaffirming their CapEx spending plans,” Hogan said. Reuters
Intel climbed 7.0% to $103.84 ahead of the report. The early gain increases expectations for its guidance.
Away from the tech sector, 3M NYSE:MMM surged 9.1% to $173.53 after upping its profit outlook for 2026. The company now sees adjusted earnings per share between $8.80 and $8.95.
Danaher NYSE:DHR dropped 13.8% to $173.35 after the company tightened its full-year core revenue growth forecast to a range of 3% to 4%.
Risk appetite remained subdued as oil and yields weighed on sentiment. Brent hovered around $90.86 per barrel. The two-year Treasury yield slipped to 4.2% following Monday’s decline.
Risks continue to focus on oil, trade, and corporate earnings. An escalation of U.S.-Iran conflict, additional tariffs, or a slowdown in cloud-related expenditures could undo the rebound seen in chip stocks.
At present, investors are purchasing the steepest chip decline. Breadth indicators suggest that the broader market recovery is still unfinished.
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