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S&P 500 rises as chip and AI-infrastructure rebound lifts US stocks
S&P 500 futures for September and Nasdaq 100 futures both rose, while the 10-year Treasury yield hit a 2-month high of 4.64% as oil prices climbed.
US stocks moved higher as gains in chipmakers and AI-infrastructure stocks continued Monday’s rebound, lifting major index gauges. The S&P 500 rose 0.64%, the Dow gained 0.47%, and the Nasdaq 100 climbed 1.58%, with September E-mini S&P futures up 0.62% and September E-mini Nasdaq futures up 1.58%.
The rally was also tied to improving sentiment ahead of this week’s earnings from major technology companies, starting with Alphabet and Tesla on Wednesday. The recent selloff in chipmakers had “cheapened valuations” and drew dip buyers, while software stocks lagged after Morgan Stanley downgraded several companies in the sector.
Oil price strength added pressure to bonds, with crude trading higher and Treasury yields moving up. The 10-year T-note yield rose to a 2-month high of 4.64%, and WTI crude was up more than 2% at a 5-week high, as the US and Iran exchanged strikes for a 10th consecutive day and mediators sought to revive a truce.
Earnings expectations also underpinned the market tone, with Bloomberg Intelligence forecasting Q2 earnings growth of about 23%, compared with Q1’s 30% growth. The outlook reflects expectations that AI spending will drive most results, and markets were pricing a 22% chance of a 25 basis point rate hike at the next FOMC meeting on July 28 to 29.
Latest closeWTI crude $87.52 ▲3.1%|S&P 500 7,509.20 ▲0.9%|Nasdaq Comp. 25,837.21 ▲1.3%