U.S. Stocks Rally on Semiconductor Rebound Despite Rising Oil Prices; Nasdaq Up 1.3%

On July 21 (local time), the three major U.S. stock indices closed higher, bolstered by strong corporate earnings and a rebound in semiconductor stocks, despite an increase in international oil prices.

The Dow Jones Industrial Average closed at 52,224.64, up 385.38 points (0.74%) from the previous trading session.

The S&P 500 index rose 65.92 points (0.89%) to 7,509.20, while the tech-heavy Nasdaq Composite index climbed 329.13 points (1.29%) to 25,837.21.

The market was driven by a second consecutive day of bargain hunting in artificial intelligence (AI) and semiconductor stocks, which had recently undergone corrections.

Micron Technology, which fell more than 13% last week, surged 12.2%, while major tech stocks such as Nvidia (2.0%) and Intel (5.9%) also showed strength.

SK Hynix American Depositary Receipts (ADRs) also jumped 13.8%.

Strong second-quarter earnings from companies also supported investor sentiment.

3M rose 7.3% on the back of strong performance and an upward revision to its annual earnings guidance, while General Motors (GM) climbed 4.9% after reporting results that beat market expectations, driven by robust demand in North America.

However, gains were capped as international oil prices continued to rise due to geopolitical instability in the Middle East, reaching their highest level in about five weeks.

Brent crude for September delivery and West Texas Intermediate (WTI) crude for August delivery closed at $91.01 and $84.91 per barrel, respectively, up 2.01% and 2.02% from the previous session.

This marks the highest closing price for Brent crude since June 10 and for WTI since June 11.

As rising oil prices fueled inflation concerns, U.S. Treasury yields rose.

The yield on the 10-year U.S. Treasury note rose 4 basis points (1bp=0.01% point) to 4.63%.

This is significantly higher than the 3.97% level seen before the outbreak of the U.S.-Iran war.

The dollar index, which reflects the value of the dollar against six major currencies, stood at 101.188 as of 4:40 p.m., up 0.226 from the previous session.

Amid the strengthening dollar, the yen-dollar exchange rate was at 163.205 yen per dollar at the same time, up 0.52% from the previous session.

It is the first time the yen-dollar exchange rate has exceeded 163 yen since December 1986.

The won-dollar exchange rate stood at 1,482.0 won.

Market analysts noted that despite the burden of oil prices, strong corporate earnings are supporting the stock market.

Keith Parker of UBS analyzed, "With the AI uptrend continuing, profit growth led by tech stocks is supporting further upside potential."
※ Please note: This article was translated by AI and may contain errors.