FOMO Buying Drives Chips Stock Bounce

MPC Markets Morning Call · Jul 21, 2026 · 10m

Wall Street staged a solid comeback on Tuesday as dip buyers piled into battered semiconductor shares, lifting the Nasdaq 1.9% and the S&P 500 0.9% to 7,509. The Philadelphia Semiconductor Index ripped 5.2% higher in its biggest daily gain in a month, with Micron up 12.2% and AMD up 8.1%, as hedge funds that had slashed long positions scrambled to rebuild ahead of mega-cap earnings. But the rally played out against a darkening geopolitical backdrop: Brent crude topped $91 a barrel after Houthi militants threatened to blockade Saudi Red Sea ports, oil tankers began u-turning, and the US…