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Nasdaq climbs 1.3% as chip rebound lifts U.S. and Asian stocks

Nasdaq climbs 1.3% as chip rebound lifts U.S. and Asian stocks

Semiconductor-led gains spread from Wall Street into Asia, including a 0.6% rise in Hong Kong’s Hang Seng, as AI spending optimism outweighed Middle East supply risks and recent tech profit-taking.

Fact Check
Two WSJ articles supplied in the caller links directly confirm every element of the claim: the Nasdaq gaining 1.3%, the rebound driven by semiconductor/chip stocks, and investors looking to Alphabet and Tesla earnings for direction. Barron's independently reports the same 1.3% Nasdaq rally and chip-stock surge on the same date (July 21, 2026), providing corroboration from a separate outlet.
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Summary

U.S. and Asian equities advanced as semiconductor and technology stocks extended a rebound driven by expectations that artificial intelligence investment will continue supporting chipmakers. The Nasdaq rose 1.29%, the S&P 500 gained 0.89%, the Dow added 0.74% and the Philadelphia Semiconductor Index jumped 5.21%, with all 30 constituents higher. The rally carried into Asia, where South Korea and Japan advanced, Australia, China and Hong Kong opened higher, and Hong Kong’s Hang Seng later rose 0.6% to 25,035 as tech shares such as Tencent and Lenovo rebounded. Investors weighed optimism over AI-linked demand and fundraising activity among Chinese tech firms in Hong Kong against geopolitical risks to oil supply after Iran-backed Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea and President Trump warned of strikes on Iranian infrastructure if shipping through the Strait of Hormuz is targeted.

Terms & Concepts
  • Philadelphia Semiconductor Index: A widely watched U.S. stock index tracking major semiconductor companies, often used as a gauge of chip-sector sentiment.
  • AI investment: Spending on computing hardware, software and infrastructure used to develop and run artificial intelligence systems.
  • Strait of Hormuz: A critical shipping route for global oil flows, making any threat to traffic there important for energy prices and inflation.