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Wall Street closed higher on Tuesday, driven by tech and energy stocks. Investor sentiment was lifted by gains in semiconductor stocks and the tech sector in general, despite escalating war rhetorics in the Middle East and new tariff announcements by the Trump administration. All three benchmark indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.7%, or 385.38 points, to close at 52,224.64. Fourteen components of the 30-stock index ended in the positive territory, while 16 ended in the negative.
The tech-heavy Nasdaq Composite jumped 329.13 points, or 1.3%, to close at 25,837.21.
The S&P 500 gained 65.92 points, or 0.9%, to close at 7,509.20. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Energy Select Sector SPDR (XLE) and the Health Care Select Sector SPDR (XLV) advanced 2.4%, 1.2% and 0.6%, respectively, while the Consumer Staples Select Sector SPDR (XLP) declined 1%.
The fear gauge CBOE Volatility Index (VIX) decreased 8.6% to 17.05. A total of 16.14 billion shares were traded on Tuesday, lower than the last 20-session average of 19.56 billion. Advancers outnumbered decliners by a 1.44-to-1 ratio on the NYSE and by a 1.65-to-1 ratio on the Nasdaq.
Nasdaq Leads Wall Street Higher Despite Middle East Tensions
Wall Street's main indexes closed higher on Tuesday, with the tech-heavy Nasdaq leading gains as a sharp rally in semiconductor stocks outweighed concerns over the latest hostilities in the Middle East. Investors remained focused on the AI-driven technology boom, with chipmakers advancing strongly on expectations of sustained demand for advanced computing infrastructure. The rebound in beaten-down semiconductor stocks sent the Philadelphia SE Semiconductor Index (SOX) up 5.2% and boosted the major indexes.
Energy stocks also gained as oil prices stayed elevated amid geopolitical uncertainty, while optimism surrounding corporate earnings further supported sentiment. Strong quarterly results and upbeat outlooks from several companies reinforced confidence in the broader economy, encouraging investors to look beyond geopolitical risks. The combination of resilient earnings, AI optimism and strength in technology shares helped lift the major indexes despite the uncertain global backdrop.
Investors Shrug Off Trump's Canada Tariff Announcement
Investors largely shrugged off President Donald Trump's announcement of 50% tariffs on a wide range of Canadian imports, choosing to look beyond the prospect of escalating trade tensions. Although the move raised concerns about potential disruptions to cross-border commerce, investors showed little sign of panic.
Instead, market participants viewed the tariff announcement as unlikely to have an immediate impact on corporate earnings or the broader U.S. economy. With investors expecting trade negotiations and possible policy adjustments ahead, attention remained on stronger market drivers, allowing the major U.S. indexes to close higher despite the latest tariff escalation.
View the Zacks #1 Rank List
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Stock Market News for July 22, 2026
Wall Street closed higher on Tuesday, driven by tech and energy stocks. Investor sentiment was lifted by gains in semiconductor stocks and the tech sector in general, despite escalating war rhetorics in the Middle East and new tariff announcements by the Trump administration. All three benchmark indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.7%, or 385.38 points, to close at 52,224.64. Fourteen components of the 30-stock index ended in the positive territory, while 16 ended in the negative.
The tech-heavy Nasdaq Composite jumped 329.13 points, or 1.3%, to close at 25,837.21.
The S&P 500 gained 65.92 points, or 0.9%, to close at 7,509.20. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Energy Select Sector SPDR (XLE) and the Health Care Select Sector SPDR (XLV) advanced 2.4%, 1.2% and 0.6%, respectively, while the Consumer Staples Select Sector SPDR (XLP) declined 1%.
The fear gauge CBOE Volatility Index (VIX) decreased 8.6% to 17.05. A total of 16.14 billion shares were traded on Tuesday, lower than the last 20-session average of 19.56 billion. Advancers outnumbered decliners by a 1.44-to-1 ratio on the NYSE and by a 1.65-to-1 ratio on the Nasdaq.
Nasdaq Leads Wall Street Higher Despite Middle East Tensions
Wall Street's main indexes closed higher on Tuesday, with the tech-heavy Nasdaq leading gains as a sharp rally in semiconductor stocks outweighed concerns over the latest hostilities in the Middle East. Investors remained focused on the AI-driven technology boom, with chipmakers advancing strongly on expectations of sustained demand for advanced computing infrastructure. The rebound in beaten-down semiconductor stocks sent the Philadelphia SE Semiconductor Index (SOX) up 5.2% and boosted the major indexes.
Energy stocks also gained as oil prices stayed elevated amid geopolitical uncertainty, while optimism surrounding corporate earnings further supported sentiment. Strong quarterly results and upbeat outlooks from several companies reinforced confidence in the broader economy, encouraging investors to look beyond geopolitical risks. The combination of resilient earnings, AI optimism and strength in technology shares helped lift the major indexes despite the uncertain global backdrop.
Consequently, Western Digital Corporation (WDC - Free Report) and Intel Corporation (INTC - Free Report) gained 12.5% and 8.6%, respectively. Both currently boast a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Investors Shrug Off Trump's Canada Tariff Announcement
Investors largely shrugged off President Donald Trump's announcement of 50% tariffs on a wide range of Canadian imports, choosing to look beyond the prospect of escalating trade tensions. Although the move raised concerns about potential disruptions to cross-border commerce, investors showed little sign of panic.
Instead, market participants viewed the tariff announcement as unlikely to have an immediate impact on corporate earnings or the broader U.S. economy. With investors expecting trade negotiations and possible policy adjustments ahead, attention remained on stronger market drivers, allowing the major U.S. indexes to close higher despite the latest tariff escalation.
No economic data was released on Tuesday.