US stocks-Wall St set to open higher as chips recover, megacap earnings loom

The second-quarter earnings season will pick up pace later this week, with reports due from several major companies, including Alphabet, Tesla, Intel and IBM.

Investors will closely watch earnings from Intel and Texas Instruments for signals on whether the semiconductor sector can regain momentum after a sharp reversal.

A surge in AI capital spending by hyperscalers has been a major driver behind this year's market gains, lifting chip stocks and other companies that are seen as the beneficiaries of the buildout, and helping the tech-heavy U.S. indexes hit record highs.

But last week's pullback raised concerns that the rally had run too far.

The Philadelphia SE Semiconductor Index ended Friday more than 20% below its late-June record high, confirming a bear-market decline. It was still up about 65% year to date.