Stock market today: Nasdaq leads Dow, S&P 500 futures higher as chip stocks revive

US stock futures rose on Tuesday, 21 July 2026, as investor sentiment shifted back toward technology and semiconductor stocks. The Nasdaq-100 led the market upward, gaining 1.3% in early trading, while the S&P 500 futures moved up 0.4% and Dow Jones Industrial Average futures added 0.2%. This movement follows a period of volatility driven by rising US-Iran tensions, which had previously caused a slump in broader market indices.

The semiconductor sector is central to current market activity. Following earlier sessions of weakness, chip stocks staged a recovery, bolstered by positive developments in the industry. Nvidia shares saw gains before the opening bell, supported by the company’s decision to take a stake in the neocloud provider Nebius. This resurgence in tech optimism is mirrored in global markets; in Asia, South Korea's KOSPI Composite index rose by over 3%, fueled by strength in its own semiconductor companies.

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Geopolitical and Trade Headwinds

Despite the tech-driven optimism, investors are weighing several external pressures. On Monday, President Trump introduced a 50% tariff on a wide range of Canadian goods, including beer, milk, chemicals, and hockey sticks. These tariffs are slated to take effect in 30 days, following accusations of "discrimination" in Canadian trading practices. While these measures threaten to reignite a trade war, the White House has notably exempted Canadian oil imports from the levy.

Energy prices remain a focal point of market anxiety. Recent hostilities between the United States and Iran had pushed Brent crude prices toward $90 per barrel, though prices eased slightly on Tuesday morning. This shift in the energy sector serves as a counterbalance to concerns regarding supply chain disruptions and inflation, as higher oil costs frequently complicate the Federal Reserve's efforts to manage price stability.

Earnings and Policy Outlook

Market attention remains split between upcoming corporate performance and monetary policy. Several companies are reporting earnings today, including General Motors, Halliburton Company, and 3M Company. Anticipation is particularly concentrated on the latter half of the week, with Alphabet scheduled to report on Wednesday. Analysts are closely watching these results to gauge the sustainability of corporate spending on artificial intelligence infrastructure.

The broader economic environment remains subject to debate among central bank officials regarding the appropriate path for interest rates. Differing perspectives have emerged from within the Federal Reserve:

These internal disagreements highlight the uncertainty facing investors who are attempting to price in potential rate hikes for later this year. While recent inflation data has occasionally offered signs of easing, officials continue to stress that the path back to the 2% inflation target remains tenuous.

What to Watch Next

• Big Tech Earnings: Scrutiny of AI spending plans will intensify with results from Alphabet and other major tech entities.
• Trade Developments: Potential responses from Canada regarding the newly imposed US tariffs may dictate the tone of North American trade relations.
• Middle East Developments: Ongoing hostilities continue to threaten global oil supply routes, particularly regarding the Strait of Hormuz.
• Inflation Measures: Upcoming Personal Consumption Expenditures (PCE) data will be the primary indicator for whether the Federal Reserve sustains its current stance or pivots toward additional tightening.

The market's ability to maintain its current momentum will likely depend on whether the "resurgence" in semiconductor stocks can withstand the conflicting pressures of geopolitical uncertainty and the high hurdle of upcoming earnings expectations.