Wall St gains on chip stocks recovery; earnings draw focus

Advancing issues outnumbered decliners by a 1.19-to-1 ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq. The S&P 500 posted five new 52-week highs and five new lows, while the Nasdaq Composite recorded 22 new highs and 64 new lows. Wall Street's main indexes rose on Tuesday, as a recovery in semiconductor shares helped shift the focus from concerns over fresh developments in the Middle East, while investors awaited major tech earnings for clues on the future of the AI trade. U.S. forces launched fresh strikes in Iran's south and west in retaliation for the deaths of American soldiers. A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire. Brent crude futures jumped over $90 a barrel following the strikes. O/R Recently battered semiconductor stocks were leading gains. The Philadelphia SE Semiconductor index SOX.O climbed 3.7%, rising for the second consecutive day. The index ended Friday more than 20% below its late-June record high, confirming a bear-market decline. But the chip gauge is up nearly 72% on a year-to-date basis. SanDisk SNDK.O, Western Digital WDC.O and Micron Technology MU.O were up between 7.7% and 10.2%. Lately, chip stocks have come under heavy pressure, as investors question whether this year's powerful rally in the sector has gone too far and scrutinize the lack of tangible returns on hefty investments by hyperscalers. On the benchmark S&P 500 .SPX, information technology .SPLRCT led the gains with a 1.3% rise. Among early movers, 3M MMM.N shares gained 9.5% after the industrial giant lifted its full-year profit forecast. Danaher DHR.N fell 13% after the life sciences firm trimmed its core revenue growth outlook and reported weaker-than-expected revenue in its biotechnology business. MSCI MSCI.N was down 11% after the index provider raised its full-year operating expense forecast despite better-than-expected quarterly revenue. Software stocks were also under pressure after Morgan Stanley cut ratings and price targets on some names. Adobe ADBE.O, Intuit INTU.O, Workday WDAY.O and Salesforce CRM.N fell between 1.5% and 2.6%. "Investors have to juxtapose strong earnings against the ongoing war with Iran," said Art Hogan, chief market strategist at B. Riley Wealth. "To end this tug-of-war, we need to hear from hyperscalers like Alphabet reaffirming their CapEx spending plans. Such affirmation from large players is likely to put a floor under the drawdown in semiconductor names." At 09:57 a.m. ET, the Dow Jones Industrial Average .DJI rose 171.34 points, or 0.33%, to 52,010.60, the S&P 500 .SPX gained 30.20 points, or 0.41%, to 7,473.48 and the Nasdaq Composite .IXIC gained 172.68 points, or 0.68%, to 25,680.75. Investor focus this week will turn to results from Alphabet GOOGL.O and Intel INTC.O, which could help determine whether the AI trade has further room to run amid elevated profit expectations. Adding to the uncertainty, President Donald Trump on Monday unveiled 50% tariffs on a wide range of imports from Canada. The Financial Times reported that Trump is also expected to impose fresh tariffs on dozens of countries as soon as this week, with his 10% global tariff poised to expire on Friday.

Wall St gains on chip stocks recovery; earnings draw focus

Market breadth

Wall Street rises as chip stocks recover

Early movers include 3M, Danaher and MSCI

Tech earnings and tariff headlines keep investors cautious

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