US stocks rise as chip shares rebound, investors eye tech earnings

Wall Street stocks climbed Tuesday as a powerful rally in semiconductor shares diverted investor attention from Middle East conflicts and trade disputes. The market is now looking ahead to earnings reports from major technology firms.

The Philadelphia Semiconductor Index jumped 5.21%, marking a significant rebound after falling more than 20% from its late June high and entering bear market territory. This recovery, coupled with gains in other major indices, signaled a shift in market sentiment.

Geopolitical concerns, including President Trump's announcement of a 50% tariff on Canadian imports and renewed US-Iran mediation efforts causing oil price volatility, appeared to have minimal impact on the US stock market. Investors seemed more focused on the robust corporate earnings season.

Industrial giant 3M reported second-quarter profits that surpassed expectations, leading to a more than 7% increase in its stock price. General Motors also saw its shares rise nearly 5% after reporting better-than-expected second-quarter revenue and profits. Overall, approximately 88% of S&P 500 companies that have released their earnings have exceeded profit forecasts, setting a positive tone for the week. Major companies like Alphabet, IBM, and Tesla are scheduled to report their results later this week.