The Nasdaq 100 Index saw a significant advance on Tuesday, driven by a resurgence in chipmaker stocks that are central to the artificial intelligence sector. This positive movement counteracted concerns arising from the renewed tensions between the US and Iran. As of 9:38 a.m. in New York, the technology-heavy Nasdaq 100 was up 1.3%, bolstered by strong export data from South Korea and Taiwan, which benefited companies like Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. The broader S&P 500 Index also rose, gaining 0.5%, with technology leading the six of 11 sectors that saw increases, while healthcare and consumer staples lagged.
This rebound in chip stocks follows a challenging period for US equities, where the S&P 500 had fallen by 1.6%, the Nasdaq Composite by 2.9%, and the Dow Jones Industrial Average by 0.9% the previous week. The VanEck Semiconductor ETF, for instance, had climbed over 2.6% on Monday, recovering after the Philadelphia Semiconductor Index had entered a bear market on Friday, marking a more than 20% decline from its late-June peak. Memory chipmakers were particularly strong performers.
Investor attention is now shifting towards the upcoming wave of corporate earnings reports, with major tech companies like Alphabet, Tesla, IBM, and Intel scheduled to release their results. These reports are expected to provide insights into the technology sector's performance and the continued momentum of the semiconductor industry. Analysts currently project S&P 500 companies to show a year-over-year earnings growth of 26% for the second quarter, an increase from an earlier estimate of 23.7%. Meanwhile, oil prices fluctuated, with Brent crude futures briefly surpassing $90 per barrel due to the US-Iran tensions, before paring gains after Iran indicated a pursuit of diplomatic resolutions.
