U.S. Stocks Hit Fresh Records | Chip Rally Ignites | Oil Tumbles | Gold and Silver Surge

Market Overview

U.S. equities extended their risk-on rally Tuesday, with all three major indexes closing at fresh record highs. The Dow Jones Industrial Average climbed 1.71% to 54,085.88, marking its first-ever close above the 54,000 level. The S&P 500 advanced 1.79% to 7,736.52, breaking above its previous June peak, while the Nasdaq Composite surged 2.59% to 26,584.99.

Semiconductor stocks were the market's standout performers, with the Philadelphia Semiconductor Index (SOX) soaring more than 7%. Arm Holdings jumped 17.36%, while Intel and SanDisk each gained more than 10%, fueling the broader technology rally.

After the closing bell, earnings results painted a mixed picture. Palantir Technologies soared 29% in after-hours trading following a strong earnings report, while AMD fell more than 8%. SpaceX, reporting its first quarterly results since going public, posted 92% year-over-year revenue growth, yet its shares weakened in after-hours trading as investors locked in gains.

Commodity markets diverged sharply. WTI crude oil dropped 5.69% to $75.77 per barrel, as easing geopolitical tensions in the Middle East triggered a rapid unwinding of the geopolitical risk premium. Meanwhile, precious metals continued their powerful advance, with spot gold briefly surpassing $4,100 per ounce intraday and silver climbing above $60 per ounce.

Asian markets also participated in the global rally, with China's ChiNext Index gaining 5.64%.

Market OutlookGlobal Services PMIs and Employment Data Take Center Stage

July Services PMI and Composite PMI readings from China, Japan, the Eurozone, the United Kingdom, and the United States will be released throughout the day. Investors will also closely monitor the U.S. ADP Employment Change report for additional insight into labor market conditions.

Following recent signs of stabilization in manufacturing activity, markets will be watching whether the services sector can sustain the recovery. At the same time, labor market data will provide important clues regarding economic resilience and the Federal Reserve's policy outlook. Together, these releases could significantly influence expectations for interest rates and the U.S. dollar.

Middle East Diplomacy and the Path for Oil Prices

As geopolitical tensions continue to ease, investors remain focused on negotiations between the United States and Iran regarding the Strait of Hormuz.

If shipping routes reopen as expected, the remaining geopolitical premium embedded in crude oil prices could continue to unwind, leaving oil vulnerable to further near-term downside. However, negotiations remain fluid, and any changes in official statements or implementation details could quickly reshape market sentiment.

Key Events to Watch

• July Services PMI and Composite PMI for China, Japan, the Eurozone, the United Kingdom, and the United States

• U.S. July ADP Employment Change

• U.S. Weekly EIA Crude Oil Inventories

• Eurozone June Producer Price Index (PPI)

• Earnings releases from SanDisk and Western Digital

• Preliminary IPO price discovery for Unitree Robotics

• Huawei All-Scenario Product Launch Event