Investment Daily: US stocks rose amid a rebound in tech shares, with earnings in focus

22 July 2026

US stocks advanced on Tuesday as AI-linked technology/semiconductor shares rebounded, with upcoming earnings releases from tech heavyweights in focus. The S&P 500 ended 0.9% higher.

US Treasuries fell as higher oil prices raised inflation and policy concerns. 10-year yields rose 4bp to 4.63%.

European stocks rose on Tuesday, buoyed by strong corporate earnings and strength in the tech sector. The Euro Stoxx 50 climbed 0.9%. The German DAX and the French CAC rose 0.7% and 0.3%, respectively. In the UK, the FTSE 100 gained 0.6%.

European government bonds were little changed. 10-year German and French bond yields both edged up 1bp to 3.16% and 3.96%, respectively. In the UK, 10-year gilt yields were unchanged at 5.03%.

Asian stock markets lacked clear direction on Tuesday. A rebound in chip stocks drove gains in some markets with Japan’s Nikkei 225 rallying 3.3% and Korea’s Kospi Jumping 3.6%. Elsewhere, China’s Shanghai Composite gained 1.8% as Hong Kong’s Hang Seng ended flat. India’s Sensex fell 0.3% as investors assessed bank earnings and geopolitical developments in the Middle East.

Crude oil prices extended gains on Tuesday. WTI for August delivery settled 2.0% higher at USD84.9 a barrel. 

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

UK headline CPI inflation likely eased to 2.7% yoy in June from 2.8% yoy in May, given lower energy prices, though this may be short-lived due to the July OFGEM price cap increase.