NEW YORK, July 20, 2026, 09:03 EDT – U.S. stock futures climbed in early trading, with technology shares leading the charge as the semiconductor sector staged a strong recovery ahead of a busy earnings week. Nasdaq 100 futures rose 0.92%, while S&P 500 futures gained 0.47% and Dow futures advanced 0.23%.
The gains were driven by a notable rebound in chip stocks, with an index of five semiconductor and storage companies rising an average of 3.5% by 08:35 EDT. This surge comes after a steep decline in technology shares last week, when the Nasdaq Composite fell 1.40% on Friday alone, and the Philadelphia semiconductor index closed 20.2% below its June peak. Despite the recent pullback, the chip index remains nearly 65% higher since the start of the year.
Investors are focusing on companies with the highest exposure to AI spending, rather than buying broadly. The recovery is concentrated in a handful of names, including Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), Western Digital (NASDAQ:WDC), Intel (NASDAQ:INTC), and Nvidia (NASDAQ:NVDA), which posted an average premarket climb of 3.5% — roughly seven times the move in S&P 500 futures.
According to data from London Stock Exchange Group (LON:LSEG), semiconductor sector profits surged 133% year-over-year in the second quarter. The sector is expected to account for 44% of the S&P 500’s total earnings growth, while overall profits for the index are projected to climb 26%. Analysts caution, however, that disappointing guidance could alter the optimistic outlook. “The daily moves for companies this big are just shocking,” said Rick Meckler, partner at Cherry Lane Investments, in comments to Reuters. He added that any negative earnings surprises could have outsized impacts given the high valuations.
Earnings season heats up this week with reports from Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), and International Business Machines (NYSE:IBM). Intel is also scheduled to release its results. Their forecasts may determine whether the chip recovery continues. Alphabet’s budget is particularly significant, as any cuts to planned AI spending could weigh on hardware providers and data-center firms.
Bond markets offered little relief. The yield on the U.S. 10-year Treasury hovered near 4.55%, while the 30-year rate climbed above 5%. These elevated levels set a higher hurdle for earnings among richly valued tech stocks. Fed funds futures indicated an approximately 12% probability of a rate hike in July, with the implied likelihood for September at around 53%.
In commodities, Brent crude briefly touched $90 amid renewed shipping concerns near the Strait of Hormuz, but prices eased on news of potential diplomatic efforts. The U.S. cash market remained closed ahead of standard trading at 09:30 EDT.
Away from the tech sector, Domino’s Pizza (NASDAQ:DPZ) rose nearly 6.5% after reporting quarterly revenue of $1.19 billion, above forecasts of $1.18 billion. Earnings came in at $4.07 per share, missing analyst projections. The broader market’s direction remains tied to tech, however, as investors move back into the sector expected to drive the majority of profit gains. Sustained momentum will require that strength to extend beyond semiconductors.
