Chips Rip. Mag 7 Reports.

Rundown · 2026-07-22

Chips ripped (SMH +4%, MU +12%, INTC +8%) as all three indexes snapped 3-day losing streaks — Nasdaq +1.29%, S&P +0.89%; strong earnings (88% beating) + Iran-diplomacy hope drove it. GOOGL + TSLA report after the close. Oil hit ~$84; 10Y to 4.63%.

Market Performance

• S&P 500: 7,509.20 (+0.89%) — snapped a 3-day losing streak; tech + chips led
• Nasdaq: 25,837.21 (+1.29%) — chip-led rebound; AI names bought after last week's rout
• Dow: 52,224.64 (+0.74%) — +385.38 pts; 3M + GM earnings beats helped
• Russell 2000: +0.37% — small caps joined the broad bounce
• Sector leaders: Tech (chips), Industrials · Laggards: Healthcare (DHR drag)
• 10Y yield: 4.63% — rose on oil + tariff-inflation risk; DXY strengthened
• WTI crude: ~$84 — Brent above $91 intraday; Middle East tensions kept the premium
• SMH +4% — MU +12%, INTC +8%, MRVL +6% — the cleanest AI-demand bounce in weeks

Chips Rip Ahead of the Mag 7 Verdict

• SMH +4% — the sharpest chip rebound since the SOX fell into a bear market Friday
• MU +12%, INTC +8%, MRVL +6%, ALAB — memory + logic names led the re-risking
• TSM +6% — reportedly testing price hikes of up to 10% in 2027 (pricing power intact)
• NVDA +~2% — disclosed a 9.3% passive stake in Nebius (NBIS), the AI-cloud firm
• ~88% of the ~66 S&P 500 reporters have beaten bottom-line estimates so far
• GOOGL + TSLA report after today's close (+ IBM) — the first Mag 7 read on AI-capex

Canada Tariffs + Earnings Breadth Widens

• Trump: 50% tariffs on ~$20B of Canadian imports — autos, alcohol, dairy; effective Aug 19
• Oil, gas, potash, critical minerals exempt — limits scope to ~5% of Canadian imports
• 30-day window leaves room for negotiation; USTR hinted more country tariffs coming
• 3M +7% (beat + raised), GM +5% (top + bottom beat), Hasbro up on raised forecasts
• S&P 500 Q2 EPS tracking ~23% — growth expected across 10 of 11 sectors (broadening)

Notable Movers

• (NBIS) +10% — Nvidia disclosed a 9.3% passive stake in the AI-infrastructure company
• (TSM) +6% — The chipmaker reportedly plans to raise prices by as much as 10% in 2027
• (DHR) -11% — Beat Q2 + raised FY, but issued weaker Q3 revenue guidance on soft bioprocessing

Private Dealmaking

• Fluidstack (AI cloud platform) — $830M
• Sila (battery technology) — $300M
• Neo (agentic security · Boston) — $100M
• Draig Therapeutics (neuropsychiatric biotech) — $65M
• Instalily AI (AI forward-deployed engineer) — $60M
• Microagi (robotics deployment) — $55M

TLDR

• S&P +0.89% to 7,509.20; Nasdaq +1.29%; Dow +385 pts — all snapped 3-day losing streaks
• SMH +4% (MU +12%, INTC +8%, MRVL +6%) — sharpest chip bounce since Friday's SOX bear market
• GOOGL + TSLA + IBM report after the close — first Mag 7 read; 88% of reporters beating so far
• Trump 50% tariffs on ~$20B Canadian imports (autos/alcohol/dairy), Aug 19; oil/gas exempt (~5%)
• TSM +6% on 10% 2027 price-hike plan; NBIS +10% on Nvidia's 9.3% stake; DHR -11% on soft guide
• WTI ~$84, Brent >$91; 10Y to 4.63%; Q2 EPS tracking ~23% across 10 of 11 sectors

The Bottom Line

The rebound is a bet, and tonight it gets graded. Chips ripped (SMH +4%, MU +12%) and all three indexes snapped 3-day losing streaks — but this is investors wagering the SOX bear market was "overdone," and GOOGL + TSLA after the close are the first hard evidence either way. The setup is loaded: 88% of companies beating, breadth widening to 10 of 11 sectors, TSM flexing pricing power — against a 9th-plus night of Iran strikes, oil at $84, and fresh Canada tariffs. If Alphabet's AI-capex guide reassures, the rotation reverses back into tech. If it's another NFLX-style "beat-but-guide-soft," the bounce fades fast.

_For informational purposes only. Not investment advice._