Stocks Rebound, Chips Surge, Oil & Gold Rise

Market Overview

Global markets advanced across three major themes on Tuesday.

First, U.S. equities staged a broad-based rebound. The S&P 500 closed at 7,509.20, up 0.89%, while the Nasdaq Composite gained 1.29% and the Dow Jones Industrial Average rose 0.74%. The Philadelphia Semiconductor Index (SOX) jumped 5.2%, marking its strongest performance in six weeks. Memory chip stocks led the rally, with SanDisk soaring 14.27%, while Micron Technology and Western Digital each climbed roughly 12%.

Second, China's semiconductor sector posted broad-based gains. The Shanghai Composite advanced 1.79% to 3,864.37, the Shenzhen Component Index surged 4.81%, and the ChiNext Index rallied 7.05%. The STAR 50 Index skyrocketed 10.73%, recording its largest single-day gain of the year. AI company Zhipu AI surged more than 38% in one session.

Third, escalating geopolitical tensions fueled simultaneous gains in both crude oil and gold. The U.S. and Iran exchanged attacks for a tenth consecutive day, pushing WTI crude up 2.02% to $84.91 per barrel, while Brent crude gained 2.0%, reclaiming the $90 level. Spot gold rose 1.76% to $4,078.31 per ounce. Meanwhile, the U.S. Dollar Index (DXY) climbed back above 101, the USD/JPY exchange rate broke above 163 as the yen continued to weaken, and TSMC signaled that wafer prices could increase 5% to 10% in early 2027.

Market Outlook● Semiconductor Supercycle Continues to Gain Momentum

The Philadelphia Semiconductor Index surged 5.2% in the U.S., while China's STAR 50 Index jumped more than 10% in a single session. Memory chip stocks rallied broadly, and TSMC's announcement of a 5% to 10% wafer price increase in 2027 reinforces expectations that AI computing and memory demand continue to accelerate.

Meanwhile, Samsung Electronics has begun volume shipments of its next-generation V-NAND products to NVIDIA, while SK Hynix expects AI chip demand to double next year. If supply-demand imbalances persist, investors will be watching whether higher pricing for memory products and advanced manufacturing nodes can successfully pass through to end markets, a key factor in determining the longevity of this semiconductor upcycle.

● Geopolitical Risks Drive Oil and Gold Higher

The military conflict between the United States and Iran has now entered its tenth consecutive day, lifting Brent crude back above $90 per barrel while spot gold climbed beyond $4,078 per ounce. The simultaneous rally highlights rising demand for both energy and traditional safe-haven assets.

Should disruptions to shipping routes through the Red Sea or the Strait of Hormuz intensify, geopolitical risk premiums in crude oil could continue to expand. At the same time, gold's ability to extend gains will depend on the ongoing tug-of-war between higher real interest rates and a stronger U.S. dollar.

Key Events to Watch

• Alphabet and Tesla report earnings after the U.S. market close today, with investors closely watching AI-related demand trends.

• Texas Instruments and IBM will release earnings today, providing further insight into corporate technology spending.

• The UK June CPI report will be released today, offering fresh clues on inflation trends and the outlook for Bank of England rate cuts.

• The U.S. EIA Weekly Crude Oil Inventories report is due today, with markets monitoring supply-demand dynamics and oil price direction.

• The U.S.-Iran conflict has entered its tenth consecutive day, keeping investor focus on developments in the Red Sea, the Strait of Hormuz, and global energy markets.