ASX set to advance, tech stocks push Wall Street higher; Google’s new AI offerings

Stan Choe

July 22, 2026 — 5:13am

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More gains for makers of computer chips and other winners of the artificial-intelligence boom are carrying Wall Street higher.

The S\&P 500 climbed 0.9 per cent. The Dow Jones Industrial Average was up 361 points, or 0.7 per cent, i mid-afternoon trade, and the Nasdaq composite was 1.4 per cent higher.

AI stocks once again were at the centre of the action on Wall Street, and they rose for a second straight day after tumbling the week before.AP

The Australian sharemarket is set to advance, with futures at 4.53am AEST pointing to a gain of 16 points or 0.2 per cent, at the open. The ASX closed flat on Tuesday. The Australian dollar was trading at US70.05¢.

AI stocks once again were at the centre of the action on Wall Street, and they rose for a second straight day after tumbling the week before.

After rocketing higher because of the boom in investment in AI chips and data centres, they’ve come under pressure in recent weeks on worries that they shot too high. Concerns are also weighing that investment in AI may fall off if it doesn’t produce as much profit and productivity as hoped.

Micron Technology jumped 12.7 per cent and added to its 1.9 per cent gain from the day before, coming off its 13.3 per cent drop from last week. Nvidia added 1.5 per cent, and they were the two strongest forces lifting the S\&P 500.

The gains came despite more climbs for oil prices, and Brent crude oil topped $US90 per barrel because of continued attacks between the United States and Iran. It rose 2 per cent to $US91.01 and briefly got near $US92 for the first time in more than five weeks. That’s up from less than $US72 early this month, which is roughly where it was before the war with Iran.

Rising oil prices are threatening a reacceleration of inflation, just as increases for prices were slowing more than economists expected. That in turn could push the Federal Reserve and other central banks to raise interest rates to keep a lid on inflation, which would slow economies and undercut prices for stocks and other investments.

The yield on the 10-year Treasury edged up to 4.63 per cent from 4.60 per cent late Monday and from just 3.97 per cent before the war with Iran began.

On Wall Street, several stronger-than-expected profit reports from big US companies helped stocks to strengthen despite the added pressure.

3M climbed 6.9 per cent after topping analysts’ expectations for both profit and revenue in the latest quarter. It also raised its forecast for profit over the full year of 2026.

Hasbro rallied 7.9 per cent after the toy maker said its Magic: The Gathering game topped $US500 million in revenue for a quarter for the first time. It also raised its revenue forecast for the year.

General Motors cruised 4.8 per cent higher after the automaker’s profit and revenue for the latest quarter beat analysts’ expectations and CEO Mary Barra said demand in North America remains strong.

They helped offset a drop for Danaher, which slid 11.4 per cent even though it likewise topped analysts’ expectations for profit and revenue. Analysts pointed to its forecast for an underlying measure of revenue growth for the summer, which was weaker than Wall Street expected.

Alphabet slid 0.9 per cent after Google released a trio of cheaper versions of its Gemini AI model, but shared no timing updates for the flagship Pro model that has already seen its launch delayed by several weeks.

The new model lineup includes Gemini 3.6 Flash and Gemini 3.5 Flash-Lite, updated versions of its lightweight offerings, designed for use cases that do not require the most cutting-edge technology. Google also unveiled a new lightweight variant, Gemini 3.5 Flash Cyber, which is tailored towards cybersecurity applications.

Homebuilder D.R. Horton slipped 0.8 per cent despite topping profit and revenue expectations for the latest quarter. Executive Chairman David Auld said it’s still feeling the effects of affordability concerns in the housing market and caution among potential home buyers.

Mortgage rates have already climbed to their highest level in nearly a year because of higher Treasury yields in the bond market. That could force D.R. Horton to offer more incentives to homebuyers in the current quarter, which would cut into its profits.

Companies broadly are under pressure to deliver strong growth in profit and revenue because of how high their stock prices have shot. Indexes are near their records, even with the recent shakiness for AI stocks.

In stock markets abroad, indexes rose modestly in Europe. The United Kingdom’s FTSE 100 added 0.6 per cent as new Prime Minister Andy Burnham hosted his first Cabinet meeting.

In Asia, stocks swung more. South Korea’s Kospi jumped 3.6 per cent on strong gains for its two dominant stocks. Both Samsung Electronics and SK Hynix have been big beneficiaries of the AI boom, and the Kospi has soared 60 per cent so far this year even with its 20 per cent drop for July so far.

Tokyo’s Nikkei 225 climbed 3.3 per cent after returning from Monday’s holiday, while indexes rose 1.8 per cent in Shanghai and edged down by less than 0.1 per cent in Hong Kong.

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