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

U.S. stock market rises July 20 as investors await major tech earnings and oil prices retreat on diplomatic hopes amid U.S.-Iran tensions.

Objective Facts

U.S. stock indexes rose on Monday, July 20, with the Dow edging up 0.3%, the S&P 500 adding 0.5%, and the Nasdaq Composite rising nearly 0.8%. Chip stocks advanced ahead of Big Tech earnings this week, while oil prices eased after touching $90 a barrel amid U.S.-Iran tit-for-tat attacks over the weekend. Wall Street has raised expectations for quarterly results from Alphabet, Intel, 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. Oil prices fell on Monday after Iran's Foreign Ministry indicated negotiations with the US could continue, which prompted a reversal of earlier gains that had pushed oil benchmarks to their highest levels in more than a month. The Nasdaq lost 2.9% for the week, the S&P 500 fell 1.6% and the Dow slipped 0.9% on the prior Friday session.

Deep Dive

The market is looking for the next catalyst for the artificial intelligence trade after a series of sector rotations in recent weeks, with investors 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 U.S.-Iran conflict is top of mind to start the week, as fighting between the sides flares up, putting the tentative ceasefire and crude oil flows through the Strait of Hormuz at risk, with oil prices remaining highly volatile as markets continue to react to shifting prospects for either escalation or de-escalation. TS Lombard analyst Freya Beamish put a low probability on disruption severe enough to drive commodity prices up, but noted risks have increased because the flare-up comes amid depleted inventories and reduced global refining capacity after Ukrainian strikes on Russian refineries cut capacity by around 10% worldwide. So far in earnings season, roughly 50 S&P 500 companies have reported with 88% exceeding analyst earnings expectations, according to FactSet. IBM will limp into its Q2 report having suffered its worst session on record last week with a 25% plunge on the back of disappointing preliminary results, though Oppenheimer analyst Param Singh believes it will be difficult for IBM to meet its full-year guidance. Tesla's earnings are forecast to have grown by 25% from the year-earlier period, though Jefferies analyst Philippe Houchois noted that underproduction should help Q2 cash flow but low implied Cybercab output also suggests more delays in ramping up Robotaxis. Alphabet is expected to report earnings and revenue growth of more than 20%, following a previous quarter in which it raised its capex guidance for the year to as high as $190 billion. Intel shares have been one of the market's most volatile mega-cap stories in 2026, surging more than 20% on a blowout Q1 report before falling sharply in recent weeks amid a broader semiconductor selloff, with the stock declining roughly 13% over the past week alone. With sentiment brittle, investors are becoming increasingly wary of valuations in the AI and technology sector – most notably in the memory chip space where share prices have surged to unprecedented levels this year. The key question heading into this week's earnings is whether the massive capital expenditures tech companies have committed to AI infrastructure will translate into near-term revenue growth and margin expansion, or whether the market has gotten ahead of actual monetization.

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

U.S. stock market rises July 20 as investors await major tech earnings and oil prices retreat on diplomatic hopes amid U.S.-Iran tensions.

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% on Monday morning.
  • Wall Street has raised expectations for quarterly results from Alphabet, Intel, IBM, and Tesla due later this week, as investors look for signs that companies are monetizing AI.
  • Brent crude fell to $87.96/barrel and WTI to $81.99/barrel on Monday after Iran's Foreign Ministry indicated negotiations with the US could continue, prompting a reversal of earlier gains that had pushed oil to its highest levels in more than a month.
  • Oil prices eased after touching $90 a barrel amid tit-for-tat attacks between the US and Iran over the weekend, while chip stocks advanced ahead of Big Tech earnings this week.
  • Investors remained cautious ahead of earnings reports from Alphabet, IBM, Tesla and Intel, while elevated valuations across AI and semiconductor stocks continued to weigh on sentiment.
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, with investors 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 U.S.-Iran conflict is top of mind to start the week, as fighting between the sides flares up, putting the tentative ceasefire and crude oil flows through the Strait of Hormuz at risk, with oil prices remaining highly volatile as markets continue to react to shifting prospects for either escalation or de-escalation. TS Lombard analyst Freya Beamish put a low probability on disruption severe enough to drive commodity prices up, but noted risks have increased because the flare-up comes amid depleted inventories and reduced global refining capacity after Ukrainian strikes on Russian refineries cut capacity by around 10% worldwide.

So far in earnings season, roughly 50 S&P 500 companies have reported with 88% exceeding analyst earnings expectations, according to FactSet. IBM will limp into its Q2 report having suffered its worst session on record last week with a 25% plunge on the back of disappointing preliminary results, though Oppenheimer analyst Param Singh believes it will be difficult for IBM to meet its full-year guidance. Tesla's earnings are forecast to have grown by 25% from the year-earlier period, though Jefferies analyst Philippe Houchois noted that underproduction should help Q2 cash flow but low implied Cybercab output also suggests more delays in ramping up Robotaxis. Alphabet is expected to report earnings and revenue growth of more than 20%, following a previous quarter in which it raised its capex guidance for the year to as high as $190 billion.

Intel shares have been one of the market's most volatile mega-cap stories in 2026, surging more than 20% on a blowout Q1 report before falling sharply in recent weeks amid a broader semiconductor selloff, with the stock declining roughly 13% over the past week alone. With sentiment brittle, investors are becoming increasingly wary of valuations in the AI and technology sector – most notably in the memory chip space where share prices have surged to unprecedented levels this year. The key question heading into this week's earnings is whether the massive capital expenditures tech companies have committed to AI infrastructure will translate into near-term revenue growth and margin expansion, or whether the market has gotten ahead of actual monetization.