Wall Street's major indexes advanced during Tuesday's session, supported by a rebound in semiconductor stocks that shifted investors' focus away from developments in the Middle East conflict and toward the corporate earnings season, with results from major technology companies expected to provide fresh clues on the outlook for artificial intelligence spending.

The gains came as US forces launched fresh strikes on southern and western Iran in response to the killing of American soldiers, while a senior Iranian official said Tehran had received a proposal from mediators for a 10-day ceasefire.

Meanwhile, Brent crude climbed above $90 a barrel following the military strikes.

Chip stocks lead market gains

The semiconductor sector led the rally, with the Philadelphia Semiconductor Index rising 3.7% to post its second consecutive session of gains.

Although the index ended last Friday more than 20% below its record high reached in late June, confirming its entry into a bear market, it remains up about 72% since the start of the year.

Shares of SanDisk, Western Digital, and Micron Technology jumped between 7.7% and 10.2%.

Chipmakers have come under heavy pressure in recent weeks as investors questioned whether the sector's rally had become overextended and scrutinized the returns generated by the massive AI infrastructure spending of major technology companies.

Among the S&P 500 sectors, information technology led the gains with a 1.3% advance.

Indexes and stocks

As of 9:57 a.m. Eastern Time:

The Dow Jones Industrial Average rose 171.34 points, or 0.33%, to 52,010.60.

The S&P 500 gained 30.20 points, or 0.41%, to 7,473.48.

The Nasdaq Composite advanced 172.68 points, or 0.68%, to 25,680.75.

Investors are awaiting earnings this week from Alphabet and Intel, which could determine whether the AI-driven rally still has enough momentum to continue amid elevated profit expectations.

Tariffs add to market uncertainty

US President Donald Trump added to market uncertainty after announcing a 50% tariff on a broad range of Canadian imports.

The Financial Times also reported that Trump is preparing to impose new tariffs on dozens of countries later this week before the current 10% global tariff expires on Friday.

Notable stock movers

3M surged 9.5% after the company raised its full-year profit forecast.

Danaher fell 13% after lowering its outlook for core revenue growth and reporting weaker-than-expected revenue from its biotechnology business.

MSCI declined 11% after raising its full-year operating expense forecast despite reporting quarterly revenue that exceeded expectations.

Software stocks also came under pressure after a financial institution lowered its price targets on several companies. Adobe, Intuit, Workday, and Salesforce fell between 1.5% and 2.6%.

Market breadth was positive, with advancing stocks outnumbering decliners by a ratio of 1.19 to 1 on the New York Stock Exchange and 1.47 to 1 on the Nasdaq.

The S&P 500 recorded five new 52-week highs and five new lows, while the Nasdaq Composite posted 22 new highs and 64 new lows.

Bitcoin rose to around $65,500 during Tuesday trading, marking its highest level in two weeks, as semiconductor stocks recovered from the sell-off that weighed on the cryptocurrency market last week, while Asian chipmakers led a broad rally in risk assets.

The world’s largest cryptocurrency gained 1% on the day and around 5% over the past week, with trading volume reaching approximately $33 billion.

Ethereum was the best performer among major cryptocurrencies, rising 3% to $1,922 and bringing its weekly gains to 8%.

XRP also climbed 3% to $1.13, posting a weekly gain of around 6%, while Solana advanced 2% to $78. BNB was steady at $574, while Dogecoin was little changed. Hyperliquid’s HYPE token rose 4% to $63, although it remained the only major cryptocurrency to record a weekly decline.

Chip stock recovery supports risk appetite

The rebound began in the same sector that triggered last week’s market decline. The MSCI Asia-Pacific Index rose 2%, recording its first gain in four sessions, supported by shares of Samsung Electronics and Taiwan Semiconductor Manufacturing Company.

Stock indices in South Korea and Taiwan each climbed around 4%, while mainland China’s technology index surged about 7% following intervention by state-backed institutions. Japan’s Nikkei also gained 3% after entering correction territory last week.

The report noted that the shock caused by China’s progress in artificial intelligence, which weighed heavily on semiconductor stocks last week, had started to fade as investors returned to buying the same shares.

Bitcoin ETF inflows and lower oil prices support gains

Bitcoin received further support from continued inflows into US spot Bitcoin exchange-traded funds, which recorded five consecutive days of net inflows exceeding $600 million. This marked the longest streak of institutional buying since mid-July, following eight straight weeks of net outflows.

Lower oil prices also helped improve risk appetite, with Brent crude falling around 1% to approximately $88.58 a barrel after Iran said mediators were discussing proposals to reduce tensions, including a plan for a 10-day halt to military strikes.

Jeff Mei, chief operating officer at BTSE, said: “Current Bitcoin and Ethereum prices are low but fair given the economic uncertainty dominating markets.”

He added that investors were now focused on the upcoming US Federal Reserve meeting. Traders expect interest rates to remain unchanged but are watching for signals about the direction of monetary policy for the rest of the year.

Federal Reserve could limit further gains

The Federal Reserve is scheduled to meet on July 28 and 29, while markets are pricing in around a 15% probability of an interest rate increase in July, with the possibility of a move in September still remaining.

Despite the rise in prices, spot cryptocurrency trading volumes remained limited, suggesting that the rally was driven more by improved risk appetite than by renewed investment conviction.

The report said that persistently high oil prices and US Treasury yields could encourage the Federal Reserve to maintain a hawkish stance, potentially limiting gains in risk assets, including cryptocurrencies.

It concluded that the main factor driving Bitcoin throughout the month had not changed, but had simply reversed direction. After falling last week alongside Asian semiconductor stocks, Bitcoin has now returned to a two-week high as those shares recovered.

Silver prices surged more than 5% in European trading on Tuesday, extending gains for a third consecutive session and climbing to their highest level in a week as the metal continued to recover from recent lows.

The rally was supported by a weaker US dollar and a pause in the advance of global oil prices, while improving market sentiment was driven by hopes that diplomatic efforts could ease military tensions between the United States and Iran, reducing the risk of higher oil prices and the inflationary pressures they could place on major central banks.

The Price

• Silver prices jumped 5.1% to $59.25 an ounce, their highest level in a week, after opening at $56.41. The metal touched an intraday low of $56.11.

• Silver gained 0.9% on Monday, marking its second consecutive daily advance as it continued to recover from an eight-month low of $54.77 an ounce.

US dollar

The US Dollar Index fell 0.15% on Tuesday, heading for its first decline in four sessions and reflecting broad weakness in the US currency against a basket of major and minor peers.

The decline came as demand for the dollar as a safe-haven asset eased, supported by improving investor sentiment and stronger risk appetite amid growing expectations that diplomatic efforts could contain the military escalation between the United States and Iran.

Oil prices

Global oil prices fell more than 0.5% on Tuesday, retreating from six-week highs amid profit-taking and growing hopes that diplomatic efforts could ease tensions around the Strait of Hormuz and ensure the continued flow of oil shipments through the vital waterway.

Iran conflict update

• International mediators submitted a formal proposal to Tehran calling for a 10-day ceasefire in an effort to revive the previously agreed temporary accord and reduce military tensions.

• Iran's Foreign Ministry confirmed that indirect contacts and exchanges of messages and proposals with Washington through mediators remain ongoing despite the continued airstrikes.

US interest rates

• According to CME Group's FedWatch Tool, markets are pricing in an 84% probability that the Federal Reserve will leave interest rates unchanged at its July meeting and a 16% chance of a 25-basis-point increase.

• For the December meeting, markets are pricing in an 18% probability that rates will remain unchanged and an 82% chance of a 25-basis-point increase.

• Investors are closely monitoring upcoming US economic data to further refine expectations for the Federal Reserve's policy path.

Oil prices advanced on Tuesday as investors weighed reports of mediation efforts aimed at securing a ceasefire between the United States and Iran against continued military exchanges and new threats by Yemen's Houthi movement to impose a maritime blockade on Saudi Arabia.

Brent crude futures rose 48 cents, or 0.5%, to $89.70 a barrel by 09:50 GMT.

US West Texas Intermediate crude for the front-month contract, which expires on Tuesday, gained 59 cents, or 0.7%, to $83.82 a barrel. The more actively traded September contract rose 50 cents, or 0.6%, to $82.98 a barrel.

"There is some optimism around de-escalation between the United States and Iran, with reports suggesting mediators have proposed a 10-day ceasefire that could put the temporary memorandum of understanding reached in June back on track," ING analysts said in a note.

However, the analysts added that the core disagreements between Washington and Tehran remain unresolved, while US President Donald Trump has warned of retaliation following the deaths of several American soldiers.

A senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire in an effort to preserve the temporary agreement signed on June 17, which was intended to pave the way for a permanent deal to end the war that erupted on February 28 following US and Israeli strikes on Iran.

The diplomatic efforts came after another night of US airstrikes on Iranian cities and attacks by Iran's Revolutionary Guard against US military assets in the region. The US Central Command (CENTCOM) later announced the start of a new round of strikes on Iran.

Analysts at SEB Research said optimists could interpret the latest US strikes as a final attempt to strengthen Washington's negotiating position before reaching a settlement and reopening the Strait of Hormuz.

"But the risk remains that the current stalemate persists for longer, prolonging uncertainty over energy flows, keeping oil prices elevated, and increasing the likelihood of further attacks," they added.

In another escalation, the UK Maritime Trade Operations (UKMTO) said an oil tanker in the Strait of Hormuz was struck by an unidentified projectile on Tuesday, forcing the crew to abandon the vessel and take refuge in a lifeboat, as shipping traffic through the strait continued to decline amid ongoing US and Iranian attacks.

Meanwhile, Iran-backed Houthi forces in Yemen announced on Monday the imposition of a maritime blockade on Saudi Arabia, opening a potential new front against the United States in its conflict with Iran and increasing risks to global energy supplies and international trade.

"Houthi threats to impose a maritime blockade on Saudi Arabia are highly significant because they increase the risk of disruptions to exports from one of the world's largest oil producers," said Tim Waterer of KCM Trade.

On the supply side, a preliminary Reuters survey showed analysts expect US crude oil and gasoline inventories to have declined last week, while distillate stockpiles are forecast to increase.