US Stock Trend (July 22): Memory Stocks Surge Double Digits Across the Board, Semiconductor Index Records Largest Monthly Gain
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US Stock Trend (July 22): Memory Stocks Surge Double Digits Across the Board, Semiconductor Index Records Largest Monthly Gain
The real touchstone is tomorrow's Tesla and Alphabet earnings reports.
Navigating Web3 tides with focused insightsBy: TechFlow Research
The memory chip sector staged a major counterattack overnight, with the Philadelphia Semiconductor Index recording its largest single-day gain in a month. The three major stock indices closed higher collectively, while oil prices and precious metals also strengthened simultaneously. In the Middle East, Trump stated that the U.S. will soon launch a "very fierce" strike on Iran's nuclear facilities, and explosions were also reported near the U.S. naval base in Bahrain. Market attention has shifted to tomorrow's Tesla and Alphabet earnings reports, which will be the first real battle of this earnings season for tech giants.
Market Performance
Nasdaq rose 1.29%, S&P 500 rose 0.89%, Dow rose 0.74%.
The Philadelphia Semiconductor Index closed up 5.21%, marking the largest single-day gain since June 22. Memory concept stocks surged collectively, SanDisk up over 14%, SK Hynix up over 13%, Western Digital and Micron Technology up over 12%, Seagate Technology up over 11%, Kioxia ADR up over 17%.
The Livermore China Concept Stock Leader Index closed up 1.06%. Major European stock indices closed higher collectively, with the German DAX 30 Index up 0.59%.
WTI crude oil settlement price rose 2.02%, Brent crude oil settlement price rose 2.01%. COMEX gold rose 1.69%, reporting 4083.7 USD/ounce. COMEX silver rose 4.23%, reporting 59.065 USD/ounce. Bitcoin reported near 66,507 USD, up over 2%; Ethereum reported 1,901.08 USD.
Macro & Outlook
The direct driver of this rebound in memory chip stocks is capital flowing back into the semiconductor sector. After last week's stampede-style sell-off, market sentiment showed a significant repair. This rebound occurred not only in U.S. stocks but also across European and Asia-Pacific stock markets, ending four consecutive trading days of declines.
Some overseas fund managers believe that this correction itself had already fallen enough, and instead, the actual earnings numbers delivered by companies held the ground, better than everyone's originally pessimistic estimates. This is the confidence behind capital daring to rebuild positions.
BlackRock's strategy team holds a similar view. They believe the AI investment main thread has not shaken due to recent volatility. Additionally, they proposed a perspective that the global economy's sensitivity to oil is much smaller compared to previous oil price shocks, and the market's immunity to oil price increases is actually stronger than imagined.
However, there are also opposing voices reminding that risks have not been cleared. Some analysis points out that the process of institutional position reduction in U.S. stocks is far from over, and the sustainability of this rebound still remains questionable.
There are also some structural changes in the memory chip industry chain worth noting. Samsung Electronics is expanding cooperation with NVIDIA in the NAND flash field and has begun supplying tenth-generation V-NAND products to NVIDIA. Market rumors also suggest that SK Hynix is negotiating to purchase Intel's campus in Ohio, planning to use it for memory chip production. TSMC plans to increase foundry prices for advanced and mature processes in 2027, with increases up to 10%, citing continuously rising material and equipment costs.
The biggest focus this week concentrates on tomorrow, as Tesla and Alphabet will kick off this round of tech giant earnings season. Microsoft, Meta, Apple, and Amazon will wait until next week. What the market really wants to know is whether the huge funds these companies have poured into AI over the past year can deliver corresponding returns through actual performance.
Regarding geopolitical situations, Trump released statements saying the U.S. will soon act against an underground nuclear facility south of Natanz, Iran, describing it as a "very fierce" strike. He also laid down harsh words that once Yemen Houthi rebels truly dare to block the Red Sea, the U.S. will act similarly. Iran's military side also did not show weakness, retorting that if nuclear facilities are truly hit, all U.S. interests in the Middle East will not escape retaliation.
Manama, the capital of Bahrain, sounded air raid alarms that day, and explosions were heard near the U.S. Navy Fifth Fleet Command. Local residents were asked to take shelter in place.
This back-and-forth statement and action indicates that both sides are currently still in the stage of testing each other's bottom lines, and there are no signals of de-escalation in the true sense yet.
There are also new moves on the trade front. The White House unilaterally announced it would add an additional 50% tariff on some Canadian products, claiming Canada engaged in unfair treatment against the U.S. in the auto parts sector. This new tax will be collected starting August 19. Calculated, this might be the toughest move Trump has made against this second-largest trading partner since taking office. However, market reaction was quite muted, with the Canadian dollar exchange rate basically showing no fluctuation.
TechFlow Perspective
The speed of this rebound in memory chip stocks is as fierce as last week's sell-off speed. Double-digit single-day gains indicate that market panic previously might have been somewhat overdone.
But the reason for the rebound is more about position-level repair. There were no new positive fundamentals. This can be seen from the warning mentioned simultaneously by BlackRock and some analysts that "institutional position reduction is far from over". The market is actually not unified on how far this rebound can go.
The real touchstone is tomorrow's Tesla and Alphabet earnings reports. If Alphabet gives strong capital expenditure guidance, this rebound has a high probability of continuing. If guidance shows any signs of contraction, the gains accumulated in memory and chip stocks over these two days might be quickly given back. This logic is consistent with market reactions after TSMC and Samsung earnings reports over the past two weeks. Investors' pricing of AI hardware stocks has become extremely sensitive.
There are currently no signs of substantial easing in the Middle East situation. If Trump's "very fierce" strike truly materializes, this round of rise in oil prices and safe-haven assets may not be finished. This line and earnings season will drive market sentiment simultaneously. Volatility in the next few days is likely not to be small.
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