The S&P 500 closed at 7,511.76, up 0.92%, ending a three-day losing streak, while the Nasdaq closed at 25,837.21, rising 1.29% to lead gains.SanDisk (SNDK.US)up 14.27% to lead all gainers,$Western Digital (WDC.US)$up 12.51%, and Micron Technology rose 12.17%, pushing its market capitalization back above the $1 trillion mark. Seagate Technology surged over 10%, with nearly the entire memory storage sector advancing by more than 10%.
On July 21, all three major U.S. equity indexes closed higher. The S&P 500 ended at 7,511.76, up 0.92%, breaking a three-day decline; the Nasdaq closed at 25,837.21, gaining 1.29% to lead the rally; and the Dow Jones Industrial Average finished at 52,224.64, up 0.74%.$PHLX Semiconductor Index (.SOX.US)$soaring over 5% for its best single-day performance in six weeks, fully reversing last Friday’s slide into bear market territory.
Semiconductor memory stocks staged a violent rebound, with the Philadelphia Semiconductor Index posting its best day in six weeks.
The most striking market action of the day was concentrated in the semiconductor sector. The three memory chip giants surged collectively: SanDisk jumped 14.27% to lead all gainers, Western Digital rose 12.51%, and Micron Technology climbed 12.17%, regaining a market valuation above $1 trillion. Seagate Technology gained over 10%, with nearly the entire memory storage segment rising by more than 10%.
Chip design firms also rallied broadly. Intel rose 8.64%, AMD gained 8.11%, and Arm Holdings advanced 7.46%.$Taiwan Semiconductor (TSM.US)$rose more than 4%,$ASML Holding (ASML.US)$up 3.59%,$Broadcom (AVGO.US)$up 2.21%,NVIDIA (NVDA.US)up 1.97%. The Philadelphia Semiconductor Index surged more than 5% in a single day, marking its best performance in six weeks and fully reversing the bear-market decline that began last Friday.
The immediate catalyst for the rally came from a new research report by Morgan Stanley semiconductor analyst Joseph Moore. He noted that shortages of data center memory chips are continuing to worsen and are expected to persist through 2028, with memory chip prices projected to rise by at least 25% between Q2 and Q3. This assessment directly ignited bullish sentiment in the memory chip sector.
The Goldman Sachs AI Semiconductor Index staged a V-shaped recovery on the same day. Michael Romano, Head of Hedge Fund Derivatives Sales at UBS Group, also commented that improving AI fundamentals represent a buying signal and recommended gradually building positions. Adam Turnquist, Chief Technical Strategist at LPL Financial, added that the recent pullback resembled a healthy reset following a parabolic rally.
Momentum factor posts best single-day performance in five years, with U.S. equities significantly decoupling from bonds
In its market close commentary titled “Momentum Melts Into Record-Best Single Day,” ZeroHedge pinpointed the core driver. Goldman Sachs’ TMT momentum basket delivered a one-day return of 11.5%, its broad AI portfolio rose 7.3%, and its AI beneficiary stock index posted its strongest single-day performance since the launch of ChatGPT.
Julia Mensch of Goldman Sachs’ Momentum Strategy team wrote in a report that de-risking of momentum positions is nearing its end. Goldman Sachs’ prime brokerage (PB) momentum exposure currently sits at the 64th percentile over the past year and the 93rd percentile over the past five years, indicating that positions have been substantially unwound and momentum is poised to revert to its long-term trend—providing institutional-level validation for significant capital inflows.
In stark contrast to the sharp rally in equities, bonds were heavily sold off on the same day. The yield on the 10-year U.S. Treasury note breached 4.60%, rising to approximately 4.63%—a two-month high for the long end of the curve—while the 2-year yield climbed 5 basis points to around 4.25%, and the 30-year yield rose to about 5.13%.
The core driver behind the decoupling of equities and bonds lies in surging oil prices lifting inflation expectations, yet buying pressure ahead of the earnings super week overwhelmed the headwinds from rising rates. All-day buying by zero-day options traders, combined with rebalancing flows from leveraged ETFs, served as a hidden force underpinning the rebound.
Not all analysts agree that the correction has ended. Jonathan Krinsky, BTIG’s chief market technician, warned of strong resistance levels overhead. Bloomberg macro strategist Michael Ball noted that demand for put options on semiconductor ETFs remains elevated, suggesting it is premature to declare the correction over.
Significant divergence within the Mag 7 as capital reallocates ahead of earnings
Significant divergence emerged within the Mag 7.$Tesla (TSLA.US)$rose 2.53%, leading gains, followed by NVIDIA up 1.97%, while Apple edged up 0.35%. Alphabet fell 1.47%, leading declines,$Microsoft (MSFT.US)$down 1.13%,$Amazon (AMZN.US)$down 0.98%, and Meta slipped 0.32%.
Google and Tesla will be the first to report their Q2 earnings ahead of Wednesday’s market open, with investors closely watching full-year capital expenditure guidance. Bret Kenwell, an analyst at eToro, noted that any company failing to meet Wall Street’s high expectations will be punished by investors.
ZeroHedge commented that the previously discussed broadening of market participation has been brutally reversed, as traders have once again crowded into AI and semiconductors rather than diversifying into value stocks. This renewed concentration suggests that market breadth has not genuinely improved, and the dominance of a few stocks over the indices has intensified further.
Oil, gold, and Bitcoin all rose; the 10-year yield breached 4.60%, and the yen plunged to 163.
The U.S.-Iran military conflict entered its 10th day, with the Houthi forces announcing a naval blockade against Saudi Arabia. Traffic through the Bab el-Mandeb Strait in the Red Sea dropped sharply by 34% within two weeks. WTI August crude settled at $84.91, up 2.02%, while Brent September crude closed at $91.01, up 2.01%—marking the first time since June 11 that Brent has closed above $90.
Soaring oil prices have pushed up inflation expectations, driving U.S. Treasury yields higher across the curve. Christopher Hodge, Chief U.S. Economist at Natixis, argued that energy price volatility should dominate the Federal Reserve’s policy decisions.
Izaac Brook, RBC interest rate strategist, noted that the 2-year yield breaking above 4.20% and the 10-year yield surpassing 4.60%—key technical levels—has amplified the move, with thin summer trading volumes exacerbating volatility.
Safe-haven and risk assets rarely rose in tandem. Spot gold climbed back to around USD 4,080, up approximately 1.5%, while spot silver surged about 5% to USD 59.$U.S. Dollar Index (USDindex.FX)$The dollar strengthened to around 101.3, with USD/JPY soaring to 163.01, reigniting speculation of Japanese intervention.$Bitcoin (BTC.CC)$It briefly spiked to USD 67,000 intraday before retreating to USD 66,194.
Bloomberg macro strategist Cameron Crise warned that long-term Treasuries are poised to consolidate 5% as a floor rather than a ceiling, with the 50-day moving average already above 5% and 5.5% as the next target. Kevin Boova, head of investment-grade credit at Goldman Sachs, noted that the world of super AI data centers again feels somewhat fragile, while raising the full-year forecast for IG bond issuance from USD 2 trillion to USD 2.15 trillion.
On Tuesday, the three major U.S. equity indices rebounded, with the storage chip trio surging collectively: Western Digital rose 14.27%, leading the market; Western Digital gained 12.51%; Micron Technology advanced 12.17%, pushing its market capitalization back above the USD 1 trillion mark; and Seagate Technology jumped over 10%. Nearly the entire storage sector rose more than 10%.
U.S. equity benchmark indices:
$S&P 500 Index (.SPX.US)$It closed up 65.92 points, or 0.89%, at 7,509.20.
The Dow Jones Industrial Average closed up 385.38 points, or 0.74%, at 52,224.64.
The Nasdaq Composite closed up 329.134 points, or 1.29%, at 25,837.207.$NASDAQ-100 Index (.NDX.US)$Closed up 550.944 points, or 1.93%, at 29,155.179.
$Russell 2000 Index (.RUT.US)$Closed up 1.53% at 2,987.395.
The CBOE Volatility Index (VIX) closed down 8.58% at 17.05.
U.S. stock sector ETFs:
Most U.S. equity sector ETFs rose, with the Semiconductor ETF up 4.52%, the Global Technology Equity Index ETF up 3.11%, the Technology Sector ETF up 2.89%, and the Energy Sector ETF up 0.98%, while the Internet Index ETF declined 0.27%.
Mag 7:
The U.S. Mag 7 Index rose 0.12% to close at 217.46.
Tesla gained 2.53%, NVIDIA rose 1.97%, Apple advanced 0.35%, Meta fell 0.32%, Amazon declined 0.98%, Microsoft dropped 1.13%, and Alphabet Class A shares decreased 1.38%.
Semiconductor stocks:
The Philadelphia Semiconductor Index closed up 612.314 points, or 5.21%, at 12,356.164.
The U.S. Memory Chip & Hardware Supply Chain Index rose 11.12% to close at 213.46.
Component stock SanDisk rose 14.27%, followed by Western Digital,Micron Technology (MU.US)、$Teradyne(TER.US)$、$Seagate Technology (STX.US)$which gained 12.51%–11.14%,Applied Materials (AMAT.US), Lam Research,$Rambus(RMBS.US)$also rose at least 4.90%.
U.S.-listed Chinese stocks:
The Nasdaq Golden Dragon China Index closed down 0.68% at 6,294.45 points.
Among popular Chinese ADRs, Tencent fell 3.5%,$NetEase (NTES.US)$dropped 3.4%, Alibaba declined 2%,$PDD Holdings (PDD.US)$fell 1.3%,$ASE Technology Holding (ASX.US)$and rose 8.7%.
Other stocks:
Cryptocurrency-related stocks strengthened,$Coinbase(COIN.US)$rose 9.61%, and Strategy rose 4.22%. Reports indicate that the White House has reached an agreement on the ethics framework of the Clarity Act, clearing the last major hurdle for cryptocurrency regulatory legislation.
The storage sector rebounded strongly, with SanDisk up over 14%,$SK Hynix (SKHY.US)$up over 13%, Western Digital and Micron Technology up over 12%, and Seagate Technology up over 11%,$Kioxia ADR (KXIAY.US)$up over 17%.
The optical communications sector saw gains across the board,$Coherent (COHR.US)$Up more than 11%,$Lumentum (LITE.US)$up over 9%,$Ciena(CIEN.US)$gaining nearly 8%,$Marvell Technology (MRVL.US)$、Corning (GLW.US) up over 6%, and Credo up over 5%.
Most cloud computing service providers advanced,$CoreWeave(CRWV.US)$up 8.92%,$Hut 8 (HUT.US)$up 7.98%, and IREN up 2.71%.$NEBIUS(NBIS.US)$up 18.78%, after NVIDIA reported holding a passive 9.3% equity stake.
Company News
[NVIDIA Announces Progress on Vera Rubin Platform: CoreWeave Tests Show 10x Increase in Token Throughput per Unit of Power]
NVIDIA announced that its Vera Rubin platform, designed for 'gigascale AI factories,' is expanding globally, with CoreWeave, Google Cloud, Microsoft Azure, and other cloud providers already adopting the Vera Rubin NVL72 system.Oracle (ORCL.US)According to NVIDIA, CoreWeave tests show that the Vera Rubin NVL72 delivers a 10-fold increase in token throughput per megawatt compared to the Grace Blackwell NVL72.
The platform integrates Vera CPUs, Rubin GPUs, NVLink 6, ConnectX-9 SuperNICs, BlueField-4 DPUs, and Spectrum-6 switching systems to enhance AI training and inference efficiency. NVIDIA stated that Vera Rubin is now deployed across more than 350 facility nodes in 30 countries, aiming to reduce AI infrastructure costs and improve energy efficiency.
[Apple to Launch 'Upgrade' Device Leasing Program to Boost Sales]
Apple is preparing to launch its 'Apple Upgrade' leasing program, which will support most iPhone, Mac, iPad, and Apple Watch models. The Apple Upgrade service operates similarly to a subscription model, allowing users to pay off their device early, upgrade to a new model ahead of schedule, or keep the device at the end of the lease term. Apple plans to market the program as a lower monthly payment alternative to existing financing options and will discontinue new sign-ups for its current iPhone Payments plan to make way for Apple Upgrade.
[Google Releases Multiple Gemini Models; Launch Date for Flagship Pro Version Still Undetermined]
Google has released three lower-cost Gemini AI models: Gemini 3.6 Flash, Gemini 3.5 Flash-Lite, and Gemini 3.5 Flash Cyber, tailored for cybersecurity scenarios, targeting applications that do not require the highest-performance models. However, the highly anticipated flagship model, Gemini 3.5 Pro, still lacks a confirmed release date. Originally scheduled for June, the launch was reportedly delayed by several weeks after internal testing revealed it fell short of expectations—particularly in code generation capabilities. Google stated the model is currently undergoing testing with partners and will be released 'soon.'
[Microsoft and Mistral Expand AI Partnership, Sign Multi-Billion-Dollar European AI Infrastructure Agreement]
On July 21, Microsoft and French AI startup Mistral AI announced an expansion of their strategic partnership, finalizing a multi-billion-dollar agreement focused on building AI infrastructure in Europe to enhance regional AI computing capacity. Under the agreement, Microsoft will leverage Mistral’s expanded European GPU infrastructure—powered by thousands of NVIDIA Vera Rubin GPUs—to support its cloud and AI services.
[Amazon Business Annualized Sales Surpass $60 Billion]
On July 21, Amazon released the latest performance update for its B2B procurement platform, Amazon Business: in the second quarter of 2026, the business achieved annualized gross sales exceeding $60 billion and currently serves over 11 million institutional customers across 11 countries worldwide.
【$SpaceX (SPCX.US)$[Massive Lockup Expiry Approaches: Over $100 Billion in Shares to Become Tradable]
SpaceX has initiated one of the largest stock lockup expirations in capital markets history, with up to $116 billion worth of shares becoming eligible for sale next month. Restrictions prohibiting certain insiders from selling up to 911.5 million shares will be lifted on August 6—two days after the rocket, satellite, and artificial intelligence company reports its first-ever quarterly earnings. This is only the beginning; billions of additional shares are expected to become tradable by year-end.
[Intel and Fortinet Announce Collaboration on Next-Generation Secure Processor]
On July 21, Intel and cybersecurity firm Fortinet$Fortinet (FTNT.US)$) announced an expansion of their long-standing partnership to jointly develop the Fortinet Security Processor 6 (SP6). The collaboration combines Fortinet’s expertise in dedicated secure processor design with Intel’s semiconductor design, advanced packaging, and manufacturing capabilities to enhance both the performance and supply chain resilience of cybersecurity products.
【$The Kraft Heinz(KHC.US)$and$Disney(DIS.US)$Announces Cross-sector Collaboration: Full Integration Across Food, Media, and Experiential Businesses]
On July 21, The Kraft Heinz and The Walt Disney Company jointly announced a long-term strategic alliance to deeply integrate resources across multiple domains, including food, media, and brand experiences. Under the agreement, the two companies will comprehensively collaborate on product innovation, co-marketing initiatives, retail channel expansion, and experiential offerings at Disney theme parks and resorts.
【$Super Micro Computer(SMCI.US)$Fourth fiscal quarter revenue expected near the lower end of the guidance range of $11–12.5 billion; gross margin guidance significantly raised]
Super Micro Computer expects fourth fiscal quarter revenue to be near the lower end of its guidance range of $11–12.5 billion. The company now forecasts a gross margin of 15%–17% for the quarter, up from its previous guidance of 8.2%–8.4%. Backlog reached a record high at fiscal year-end, with new orders totaling over $60 billion during the quarter awaiting delivery.
The Eurozone blue-chip index closed up more than 0.9%, with Infineon rising over 5.5% and ASML Holding gaining approximately 4.8%.
Pan-European Equities:
The STOXX Europe 600 Index closed 0.56% higher at 643.19 points, briefly turning negative during early European and U.S. trading sessions.
The EURO STOXX 50 Index closed up 0.94% at 6,285.63 points, opening with a gap up and subsequently forming a W-shaped upward pattern.
National stock indices:
The German DAX 30 Index closed 0.66% higher at 25,011.35 points.
The French CAC 40 Index closed up 0.28% at 8,363.14 points.
$FTSE 100 Index (.FTSE.GB)$Closed up 0.58% at 10,585.91 points.
Sector and individual stock performance:
Among Eurozone blue-chip stocks, Infineon closed up 5.53%, ASML Holding rose 4.77%, and Siemens Energy gained 3.60%.$TotalEnergies (TTE.US)$Energy was the fourth-best performer, up 2.35%; Wolters Kluwer fell 2.31%, marking the third-largest decline, Munich Re dropped 2.75%, and Prosus declined 3.7%.
Among all constituents of the STOXX Europe 600 Index, Mitie Group rose 39.07%, AT&S AG gained 11.97%, semiconductor stocks Soitec climbed 10.51%, Aixtron SE advanced 8.29%, and BE Semiconductor Industries NV rose 7.16%, ranking fifth in performance.
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Editor/Liam