Stock market rises as investors await major tech earnings, oil prices retreat

US stocks rose Monday with chip stocks advancing ahead of Big Tech earnings this week, while oil prices eased after touching $90 a barrel.

Objective Facts

US stocks rose on Monday morning, with chip stocks advancing ahead of Big Tech earnings this week, while oil prices eased after touching $90 a barrel. The Dow Jones Industrial Average edged up 0.3%, while the S&P 500 added 0.5% and the tech-heavy Nasdaq Composite popped almost 0.8%. Wall Street has raised its expectations for quarterly results from Alphabet, Intel Corporation, IBM, and Tesla due later this week, as investors look for signs that companies are monetizing AI to accompany their huge investments in the AI build-out. Alphabet and Tesla are set to report on July 22, while Intel reports on July 25. On commodities, international benchmark Brent crude was last seen trading 0.3% lower at $87.88 per barrel after topping $90, while U.S. West Texas Intermediate crude dipped 0.5% at $82.07. Crude oil pared earlier gains as signs of renewed diplomatic efforts between the US and Iran eased some supply concerns, with Iran's Foreign Ministry saying it had received proposals from international mediators aimed at reducing tensions.

Deep Dive

The market is looking for the next catalyst for the artificial intelligence trade after a series of sector rotations in recent weeks. The stock market's opening Monday reflects a crucial juncture: investors are recalibrating after a brutal week that saw the S&P 500 off 1.6%, the Nasdaq slid 2.9%, and the Dow fell 0.9%. Investors will be watching closely to see whether earnings can justify elevated valuations and whether the recent pullback develops into a broader correction or simply a pause in the AI-led rally. The semiconductor sector exemplifies this tension. The VanEck Semiconductor ETF fell more than 4%, extending pressure on chip stocks as investors questioned whether the AI-driven rally has pushed valuations beyond what fundamentals can support. Yet IBM, Intel, Google, and Tesla are moving up as investors prepare for a strong earnings week—these stocks represent the biggest tech companies releasing quarterly earnings this week, and their performance could lift the tech market and the wider stock indices, helping to offset losses from the chip sector. Combined, the three results will offer what may be the most comprehensive single-week data point yet on whether the AI spending cycle is generating real returns — or whether investors are running ahead of the fundamentals. One analyst warned that a reduction in AI spending may trigger 'ripple effects across the entire AI ecosystem'. The earnings calendar is particularly consequential because the entire AI trade hinges on whether hyperscalers' enormous capex commitments translate into measurable revenue and profit growth. For Big Tech, data center capex from the top five hyperscalers — Microsoft, Alphabet, Amazon, Meta, and Oracle — is expected to grow 79% year on year in 2026 to $644 billion. The oil picture reflects a different but related tension: geopolitical risk versus market optimism for de-escalation. Oil prices have remained highly volatile as markets continue to react to shifting prospects for either escalation or de-escalation in the conflict, which has repeatedly disrupted traffic through the Strait of Hormuz—prices surged after fresh military exchanges between the US and Iran over the weekend. However, crude oil pared earlier gains after signs of renewed diplomatic efforts between the US and Iran eased supply concerns, with Iran's Foreign Ministry saying it had received proposals from international mediators aimed at reducing tensions and that negotiations could continue if they serve the country's national interests. This volatile choreography will likely persist throughout earnings week, with each headline capable of shifting market sentiment rapidly.

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Stock market rises as investors await major tech earnings, oil prices retreat

US stocks rose Monday with chip stocks advancing ahead of Big Tech earnings this week, while oil prices eased after touching $90 a barrel.

Jul 20, 2026
What's Going On
  • The Dow Jones edged up 0.3%, the S&P 500 added 0.5%, and the tech-heavy Nasdaq Composite popped almost 0.8%.
  • Wall Street has raised its expectations for quarterly results from Alphabet, Intel Corporation, IBM, and Tesla due later this week, as investors look for signs that companies are monetizing AI.
  • International benchmark Brent crude was last seen trading 0.3% lower at $87.88 per barrel after topping $90, while U.S. West Texas Intermediate crude dipped 0.5% at $82.07.
  • The US-Iran war escalated over the weekend after the US engaged in its ninth straight day of attacks and Iran retaliated, but oil prices reversed gains as Iran said diplomatic exchanges with the US would continue via mediators.
  • Of the roughly 50 S&P 500 companies that have reported, 88% have exceeded analyst earnings expectations.
Objective Deep Dive

The market is looking for the next catalyst for the artificial intelligence trade after a series of sector rotations in recent weeks. The stock market's opening Monday reflects a crucial juncture: investors are recalibrating after a brutal week that saw the S&P 500 off 1.6%, the Nasdaq slid 2.9%, and the Dow fell 0.9%. Investors will be watching closely to see whether earnings can justify elevated valuations and whether the recent pullback develops into a broader correction or simply a pause in the AI-led rally. The semiconductor sector exemplifies this tension. The VanEck Semiconductor ETF fell more than 4%, extending pressure on chip stocks as investors questioned whether the AI-driven rally has pushed valuations beyond what fundamentals can support. Yet IBM, Intel, Google, and Tesla are moving up as investors prepare for a strong earnings week—these stocks represent the biggest tech companies releasing quarterly earnings this week, and their performance could lift the tech market and the wider stock indices, helping to offset losses from the chip sector.

Combined, the three results will offer what may be the most comprehensive single-week data point yet on whether the AI spending cycle is generating real returns — or whether investors are running ahead of the fundamentals. One analyst warned that a reduction in AI spending may trigger 'ripple effects across the entire AI ecosystem'. The earnings calendar is particularly consequential because the entire AI trade hinges on whether hyperscalers' enormous capex commitments translate into measurable revenue and profit growth. For Big Tech, data center capex from the top five hyperscalers — Microsoft, Alphabet, Amazon, Meta, and Oracle — is expected to grow 79% year on year in 2026 to $644 billion.

The oil picture reflects a different but related tension: geopolitical risk versus market optimism for de-escalation. Oil prices have remained highly volatile as markets continue to react to shifting prospects for either escalation or de-escalation in the conflict, which has repeatedly disrupted traffic through the Strait of Hormuz—prices surged after fresh military exchanges between the US and Iran over the weekend. However, crude oil pared earlier gains after signs of renewed diplomatic efforts between the US and Iran eased supply concerns, with Iran's Foreign Ministry saying it had received proposals from international mediators aimed at reducing tensions and that negotiations could continue if they serve the country's national interests. This volatile choreography will likely persist throughout earnings week, with each headline capable of shifting market sentiment rapidly.