U.S. stocks rose on July 22, lifted by a sharp comeback in storage chip names that pushed the Philadelphia Semiconductor Index to its biggest one-day gain since June 22. Chaoxiang Research said the real test for markets now sits with Tesla and Alphabet earnings due the next day, calling them the first hard check of this round of Big Tech results season.
Semiconductor rally lifted the broader market
The Nasdaq Composite gained 1.29%, the S&P 500 rose 0.89%, and the Dow Jones Industrial Average added 0.74%. The Philadelphia Semiconductor Index jumped 5.21%.
Storage-related names led the move. Sandisk rose more than 14%, SK Hynix climbed more than 13%, Western Digital and Micron Technology both gained more than 12%, Seagate Technology rose more than 11%, and Kioxia ADR advanced more than 17%.
Chinese stocks also moved higher, with the Livermore Chinese concept leaders index up 1.06%. Major European indexes closed higher as well, and Germany’s DAX30 rose 0.59%.
Oil, gold and silver moved up
In commodities, WTI crude settled up 2.02% and Brent crude settled up 2.01%. COMEX gold rose 1.69% to $4,083.7 an ounce, while COMEX silver gained 4.23% to $59.065 an ounce.
In crypto, Bitcoin traded near $66,507, up more than 2%, and Ether stood at $1,901.08.
Money rotated back into semiconductors after last week’s sell-off
Chaoxiang Research said the direct driver behind the latest rebound in storage chip stocks was a return of capital to the semiconductor sector. After what it described as a stampede-like sell-off last week, market sentiment showed a clear recovery. The rebound was not limited to U.S. stocks. European and Asia-Pacific equities also moved higher, ending a four-session losing streak.
One overseas fund manager, as cited in the report, argued that the market had already fallen enough during the correction and that actual corporate earnings came in better than previously pessimistic expectations. That, in the manager’s view, gave investors the confidence to rebuild positions.
BlackRock’s strategy team offered a similar reading. According to the report, the team said the AI investment theme has not been shaken by recent market volatility. It also argued that the global economy is less sensitive to oil than it was in earlier periods of energy shocks, leaving markets more resilient to rising crude prices than many had expected.
Still, not everyone was convinced. Some analysts warned that the institutional deleveraging and position reduction process in U.S. equities is far from over, leaving the durability of the rebound open to question.
Supply chain developments stayed in focus
The report also highlighted structural changes across the memory supply chain. Samsung Electronics is expanding its cooperation with Nvidia in NAND flash and has started supplying its 10th-generation V-NAND products to the company.
At the same time, the market circulated a report that SK Hynix is considering the purchase of Intel’s campus in Ohio for memory chip production. TSMC, meanwhile, plans to raise foundry prices for both advanced and mature process nodes in 2027, with increases of as much as 10%, citing continued pressure from material and equipment costs.
Tesla and Alphabet earnings now carry outsized weight
The biggest event this week is set for the next day, when Tesla and Alphabet are due to open the latest stretch of Big Tech earnings. Microsoft, Meta, Apple, and Amazon are scheduled to report next week.
The market is focused on a straightforward question: can the heavy AI spending by these companies over the past year and more translate into returns visible in actual results?
Chaoxiang Research said the speed of the rebound in storage stocks matched the speed of last week’s sell-off, and the double-digit one-day gains suggest panic had likely gone too far. But the report said the rebound looks more like a repair in positioning than a move driven by new fundamental positives. It noted that BlackRock and some analysts both pointed to the same warning sign: institutional position cutting has not ended, and there is no clear consensus on how far the bounce can run.
The report added that Tesla and Alphabet earnings are the real test. If Alphabet maintains strong capital expenditure guidance, the rebound likely has room to continue. If there are signs of a pullback in guidance, gains built up over the past two days in storage and chip stocks could be given back quickly. Chaoxiang Research linked that logic to the market reaction seen after recent TSMC and Samsung earnings, saying investors have become extremely sensitive in the way they price AI hardware stocks.
Geopolitics and trade added another source of pressure
On geopolitics, Trump said the U.S. would soon launch a “very severe” strike on an underground Iranian nuclear facility south of Natanz. He also said the U.S. would act if Yemen’s Houthis moved to block the Red Sea.
Iran’s military responded by saying that if its nuclear facilities were attacked, all U.S. interests in the Middle East would face retaliation.
In Bahrain, air raid sirens sounded in the capital Manama, and explosions were reported near the headquarters area of the U.S. Navy’s Fifth Fleet. Residents were told to shelter in place. Chaoxiang Research said the exchange of threats and actions showed both sides were still testing each other’s limits, with no real sign of de-escalation.
On trade, the White House unilaterally announced an additional 50% tariff on some Canadian products, saying Canada had treated the U.S. unfairly in auto parts. The new tariff is set to take effect on August 19. The report said that could be the toughest move Trump has taken against America’s second-largest trading partner since taking office, though market reaction was muted and the Canadian dollar showed little movement.
Market volatility may stay elevated
Chaoxiang Research said that if the “very severe” strike Trump described is eventually carried out, the rise in oil and safe-haven assets may not be over. With earnings season and Middle East tensions developing at the same time, market volatility over the coming days is likely to remain elevated.
