Key facts
- U.S. stock indexes opened higher Monday, with investors awaiting earnings from Alphabet, Tesla, Intel, and IBM.
- Chip stocks recovered from a recent pullback, boosting the market.
- Middle East tensions escalated with U.S. strikes in Iran, raising concerns over shipping.
- Brent crude oil surpassed $90 a barrel for the first time since early June.
Wall Street's main indexes opened higher on Monday, as chip stocks recovered from last week's pullback and investors awaited a key slate of earnings from major technology companies that have powered the market's AI-driven rally. The Dow Jones Industrial Average rose 8.2 points, or 0.02%, at the open to 52,154.57. The S&P 500 rose 31.5 points, or 0.42%, at the open to 7,489.18, while the Nasdaq Composite rose 200.6 points, or 0.79%, to 25,720.871 at the opening bell.
Investors are bracing for a significant slate of second-quarter earnings reports from major technology companies, including Alphabet, Tesla, Intel, and IBM. These reports are expected to test the sustainability of the market's current AI-driven rally. The semiconductor sector has experienced a sharp reversal, with the Philadelphia SE Semiconductor Index now in bear market territory, down over 20% from its late-June high. This pullback has fueled investor impatience regarding the 'spend phase' of AI infrastructure buildout.
Escalating geopolitical tensions in the Middle East are also contributing to market caution. U.S. forces have been conducting strikes in Iran for the ninth consecutive day, raising concerns about shipping through the Strait of Hormuz and potentially driving up energy prices. Brent crude oil surpassed $90 a barrel for the first time since early June.