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July 20, 2026 - 15:32
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(Bloomberg) — A rebound in chipmakers powered Wall Street gains, with stocks also rising as oil fell on hopes for a revival of a peace deal between the US and Iran that has all-but collapsed amid an escalation of hostilities.The S&P 500 halted a back-to-back slide, with a measure of semiconductor giants such as Nvidia Corp. and Broadcom Inc. climbing 2.5% after falling into a bear market at the end of last week. Alphabet Inc. advanced as The Information reported Google is working on a new server chip which would integrate the blueprint of its Gemini AI model. The Nasdaq 100 added 1%.In a volatile session, oil erased gains as traders grappled with a barrage of headlines around the Middle East conflict. Mediators have proposed a 10-day cessation of strikes between the US and Iran, according to Reuters. The news helped temper concerns about a more significant escalation in violence that threatens further disruption to energy supplies.Maritime traffic through the Strait of Hormuz, where about a fifth of the world’s oil flowed, remains near standstill amid tit-for-tat attacks between the US and Iran. Houthis, an Iran-backed Yemeni group, said they would impose a maritime blockade on Saudi Arabia, putting at risk the flow of millions of barrels that the kingdom exports via the Red Sea.The week also brings the first results from the megacap group, and pressure is building for the biggest spenders on artificial intelligence to justify their expenditures. Tesla Inc. and Alphabet Inc. kick off big tech’s reporting season on Wednesday. Then Microsoft Corp., Meta Platforms Inc., Apple Inc. and Amazon.com Inc. hit the following week. Nvidia reports later next month.Hedge funds pulled back from US tech stocks at a record pace over the past two months, according to Goldman Sachs Group Inc.’s Prime Services desk led by Vincent Lin.“Amid continued volatility and sharp selloff across the semis/memory/AI infrastructure complex, the persistence and magnitude of selling since early June point to significant length reduction by tech investors, and some signs of capitulation are starting to emerge,” the desk wrote.Corporate Highlights:Bristol Myers Squibb Co. is expanding its partnership with Nvidia Corp. to boost the computing power of an AI factory that the drugmaker say it’s using to create new medicines more quickly. AMC Entertainment Holdings Inc. soared after posting revenue for the second quarter that beat the average analyst estimate. Domino’s Pizza Inc.’s US comparable sales growth fell to its slowest pace in five quarters, suggesting consumers continue to pull back on dining out, with pizza faring worse than burgers or burrito bowls. Jersey Mike’s Subs Inc. and its shareholders are looking to raise as much as $1.09 billion in an initial public offering, as consumer-oriented companies join the US listing rebound. Alibaba Group Holding Ltd. rose after the company launched a preview version of its flagship Qwen3.8 Max model, describing it as second only to Anthropic PBC’s Fable 5. Some of the main moves in markets:StocksThe S&P 500 rose 0.6% as of 9:31 a.m. New York time The Nasdaq 100 rose 1.1% The Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1418 The British pound was little changed at $1.3456 The Japanese yen was little changed at 162.42 per dollar CryptocurrenciesBitcoin was little changed at $64,541.6 Ether rose 0.2% to $1,870.39 BondsThe yield on 10-year Treasuries advanced two basis points to 4.56% Germany’s 10-year yield was little changed at 3.13% Britain’s 10-year yield advanced two basis points to 4.97% CommoditiesWest Texas Intermediate crude fell 0.7% to $81.94 a barrel Spot gold fell 0.1% to $4,011.67 an ounce ©2026 Bloomberg L.P.
