Chip Stocks Rebound, Trade Tensions Escalate, Alphabet and Tesla Earnings
By Jacqueline Policastro | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: Stocks rallied Tuesday as semiconductor shares rebounded from last week’s selloff. The Dow rose 0.74%, the S&P 500 gained 0.89%, and the Nasdaq climbed 1.29%, with the Philadelphia Semiconductor Index jumping 5.2%. Oil and Treasury yields also rose. Brent crude futures extended their rally Wednesday, briefly topping $95 a barrel, after settling 2% higher at $91.01 on Tuesday amid escalating U.S.-Iran strikes. The 10-year Treasury yield briefly touched 4.64%, its highest since May 20. Higher energy prices and borrowing costs remain potential obstacles for consumers and businesses.
Trade tensions escalated on two fronts. President Trump announced 50% tariffs on nearly $20 billion of Canadian imports, effective August 19; he and PM Mark Carney agreed to intensify talks. Separately, Trump gave generic drug manufacturers two years to shift production to the U.S. before facing a 100% tariff in 2028, a move that could increase costs for generic medicines and complicate supply if manufacturers are unable to relocate production.
Today’s Focus: AT&T reported before the bell, beating on earnings ($0.65/share vs. $0.59 expected) though revenue of $31.6 billion narrowly missed estimates, driven by fiber and wireless growth offsetting legacy declines. Alphabet and Tesla report after the close.
The central question is whether years of heavy AI investments are producing sustainable growth. Alphabet investors will be watching Google Cloud results and the company’s expanding AI spending plans. Tesla faces scrutiny over vehicle demand, profit margins, cash flow and its costly push into robotaxis and AI.
ON THE SCHEDULE FOR WEDNESDAY, JULY 22, 2026
-Earnings – AT&T, Alphabet, Tesla
-Thursday, 8:30 a.m. ET – Initial Jobless Claims
-Thursday – Comcast, Honeywell, Intel earnings
-Friday, before the open – American Express, Verizon earnings
-Friday, 9:45 a.m. ET – S&P Global Flash U.S. Manufacturing and Services PMIs (Preliminary, July)
-Friday, 10:00 a.m. ET – New Residential Sales (June)
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