US Stocks Rise as Chip Shares Rebound Amid Oil Swings

Gains narrow as Treasury yields climb with oil volatility

U.S. stocks opened higher on July 20 as oil prices fluctuated amid the military conflict between the U.S. and Iran. The Nasdaq led gains as semiconductor shares rebounded.

As of 10:10 a.m. Eastern time, the S&P 500 was up 0.3%. The Nasdaq, which opened more than 1% higher, pared its advance to 0.6%. The Dow Jones Industrial Average reversed course and fell 0.2%.

The U.S. carried out airstrikes on Iran for a ninth straight day. Investor sentiment improved after comments from an Iranian Foreign Ministry spokesman fueled hopes for a diplomatic solution.

Iranian Foreign Ministry spokesman Esmaeil Baghaei said that, despite the recent strikes, talks with the U.S. could proceed if they served national interests. He added that mediating countries had proposed discussions on a 10-day halt in airstrikes by the U.S. and Iran.

U.S. West Texas Intermediate crude futures swung modestly around $82 a barrel, giving back early gains. Brent crude also retreated from levels above $90 a barrel reached the previous night and traded around $88 a barrel.

Reflecting the early rise in oil prices, the yield on the two-year Treasury note rose 4 basis points to 4.217%. The 10-year Treasury yield also climbed 4 basis points to 4.582%.

Semiconductor makers led the advance as they tried to recoup steep losses from last week.

As of 10 a.m., Nvidia was up 1.8%. SK Hynix rose 3%, Micron Technology gained 4%, and Advanced Micro Devices climbed nearly 4%.

The Philadelphia Semiconductor Index, which entered a bear market last week, rose 3.1%.

Earnings from major automakers and large technology companies are due this week.

Investors are focused in particular on Alphabet, which is scheduled to report earnings on July 22. Alongside the results, markets are closely watching capital expenditure, or capex, as a gauge of the direction of AI investment.

Alphabet rose 3.4%, while Amazon.com and Tesla also advanced.

Bloomberg reported that second-quarter earnings for S&P 500 companies are forecast to rise 26%. Excluding recoveries following major recessions, that would mark the largest increase on record.

“Investors still believe President Trump has little willingness to materially escalate military operations in the Middle East,” Adam Crisafulli of Vital Knowledge said. “Some form of diplomatic resolution appears inevitable.”

Kim Jung-a, guest reporter at Hankyung.com, kja@hankyung.com