Daily Summary: Semiconductors Rise in the Shadow of Geopolitical Turmoil

Date: 21 July 2026

Market Overview

The US stock market concluded Tuesday's session with notable gains, particularly in the US100 index, which rose nearly 2%. The Russell 2000 futures also saw an increase of over 1%. The ongoing geopolitical tensions in the Middle East are significantly influencing market sentiment, with mixed reactions to the conflict's developments.

Geopolitical Influences

In the Middle East, the situation remains volatile, with alternating escalations in conflict and proposals for ceasefires. Additionally, the US has announced new tariffs on Canada, which, while selective and expected to have a mild economic impact, has raised concerns about a potential new wave of tariffs under the Trump administration.

Furthermore, the US government is reportedly considering a ban on open AI models in response to China's launch of the K3 model, indicating a growing focus on technology and national security.

Company News - United States

• General Motors (GM.US): Reported Q2 2026 results exceeding expectations with revenue of USD 48 billion and EPS of USD 3.57, leading to a 3% increase in stock price.
• Nebius (NBIS.US): Shares surged over 17% after Nvidia acquired a 9.3% stake in the company.
• Eli Lilly (LLY.US): Facing a lawsuit from Novo Nordisk over alleged unfair practices, yet the stock rose about 1%.
• Northrop Grumman (NOC.US): Despite record revenue, a decline in operating margin led to an initial drop of nearly 8%, which later stabilized to around 2%.
• 3M (MMM.US): Reported Q2 results that surpassed expectations, with EPS at USD 2.24 and revenue at USD 6.5 billion, resulting in a 7% stock increase.
• SaaS Sector: Morgan Stanley's reports on SaaS companies highlighted positives, but the market reacted negatively, with stocks down between 1% and 4%.

Company News - Europe

• ASML: Benefited from a rebound in the semiconductor sector, leading the gainers.
• Siemens Energy: Stock rose over 2% due to recovering oil and gas prices.
• Novartis: Reported Q2 operating results of USD 5.94 billion, beating expectations despite a significant drop in Entresto sales.
• Julius Baer: Stock fell 4% despite better net inflows.
• Schindler: Experienced a 5% drop after reporting weaker quarterly revenues.
• Vaar Energi: Acquired BlueNord for USD 1.33 billion, boosting shares of both companies by approximately 5% and 6% respectively.
• Wienerberger: Shares fell 4% after issuing a warning about weaker full-year earnings.

Forex and Commodities

In the forex market, both the US dollar and euro saw symmetrical gains of around 0.3% against other currencies, influenced by shifts in interest rate and inflation expectations. In commodities, tensions in the Middle East have driven hydrocarbon prices higher, with Brent crude rising over 2% to surpass USD 91. Silver also saw significant gains, up more than 4%, potentially indicating a market correction after previous declines.

Cryptocurrency Market

The positive sentiment in the equity markets has spilled over into cryptocurrencies, with Bitcoin rising over 1% to exceed USD 66,000. Ethereum also saw gains, trading above USD 1,910, while Solana experienced slight declines, remaining around USD 77.7.

Conclusion

The market is currently navigating through a complex landscape of geopolitical tensions, corporate earnings, and sector-specific developments, particularly in semiconductors and energy. Investors are advised to stay informed and consider the implications of these factors on their trading strategies.