NEW YORK, July 21, 2026, 09:04 EDT – U.S. stock futures advanced on Tuesday, driven by a strong rebound in semiconductor stocks. The Nasdaq 100 futures led the charge, climbing 1.16%, while S&P 500 futures gained a more modest 0.31%, highlighting a narrow rally concentrated in tech shares.
Chip Stocks Surge but Remain in Bear Territory
The iShares Semiconductor ETF (NASDAQ:SOXX) surged 4% in premarket trading, providing a significant boost to the tech-heavy Nasdaq. However, the underlying Philadelphia chip index remains more than 20% below its late-June peak, technically still in a bear market. Despite this, the index is trading roughly 66% above its level at the start of 2026, reflecting the sector's volatile but upward trajectory over the longer term.
The disparity in market breadth was notable. The Nasdaq 100's gain was 3.7 times that of the S&P 500 and 4.3 times the increase in the Russell 2000 small-cap index. Futures for the Dow Jones Industrial Average edged up just 0.15%, underscoring the lack of participation from blue-chip stocks.
Oil Prices Climb, Fueling Inflation Concerns
Brent crude oil rose 1.8% to $90.84 per barrel, while West Texas Intermediate (WTI) advanced 1.7% to $84.60, following new U.S.-Iran strikes. The increase in oil prices continues to stoke inflation worries, which remain a key concern for investors. Higher energy costs could pressure corporate margins and consumer spending, potentially offsetting gains from lower interest rate expectations.
Earnings Season in Focus
Investors are looking ahead to earnings reports from major companies to validate the rebound in AI demand. Alphabet (NASDAQ:GOOGL) and Intel (NASDAQ:INTC) are scheduled to release their quarterly results later this week. Early consensus estimates project S&P 500 earnings for the second quarter to rise by 26%, up from a previous forecast of 23.7%, indicating optimism about corporate profitability.
UBS Group (NYSE:UBS) Global Wealth Management CIO Mark Haefele commented that “earnings growth should remain a key driver of the equity market,” and he anticipates only minimal core-inflation impact from shipping disruptions.
Several companies reported strong results on Tuesday. 3M (NYSE:MMM) climbed over 5% after raising its adjusted earnings outlook for 2026 to between $8.80 and $8.95 per share. The company posted adjusted EPS of $2.40 for the quarter, an 11% increase, with CEO William Brown highlighting “robust operating margins of about 25%.”
General Motors (NYSE:GM) shares advanced roughly 1% as the company’s core profit jumped 30%. The automaker raised its 2026 adjusted EBIT forecast by $500 million, setting a new range of $14 billion to $16 billion.
Nebius Group (NASDAQ:NBIS) surged 6.5% following Nvidia’s (NASDAQ:NVDA) announcement of a 9.3% passive holding in the company. On the downside, Equifax (NYSE:EFX) tumbled 12.4% after its earnings forecast fell short of expectations, projecting adjusted 2026 EPS of $8.39 to $8.69 despite 11% revenue growth.
Market Breadth and Outlook
Monday’s trading session saw declining stocks outnumber gainers, with a ratio of 1.72-to-1 on the NYSE and 1.8-to-1 on the Nasdaq, despite a 0.6% rise in the chip index. This negative breadth raises the bar for a sustained rebound and suggests that the rally remains fragile and heavily reliant on semiconductor stocks.
No major national economic data is scheduled ahead of the open, though the Bureau of Labor Statistics will release figures on state employment and typical weekly earnings at 10 a.m. ET.
Risks remain balanced. Further increases in oil prices, additional tariffs, or disappointing earnings outlooks from megacap tech companies could reverse recent gains. A broader market rally, with stronger participation from small-cap and value stocks, would provide a more convincing signal of a sustained recovery. The opening half hour of trading will be closely watched to see if market breadth aligns with futures performance.
