AI Stocks Lead Wall Street Higher      07/21 15:18

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

   NEW YORK (AP) -- More gains for makers of computer chips and other winners 
of the artificial-intelligence boom carried Wall Street higher Tuesday.

   The S&P 500 climbed 0.9%. The Dow Jones Industrial Average added 385 points, 
or 0.7%, and the Nasdaq composite rose 1.3%.

   AI stocks once again were at the center of the action, 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 centers, 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 12.2% and added to its 1.9% gain from the day 
before, coming off its 13.3% drop from last week. Nvidia added 2%, 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 
briefly got near $92 per barrel for the first time in more than five weeks 
because of continued attacks between the United States and Iran. It later pared 
its gain to 2% and settled at $91.01. That's up from less than $72 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, 
which would slow economies and undercut prices for stocks and other investments.

   The yield on the 10-year Treasury rose to 4.63% from 4.60% late Monday and 
from just 3.97% before the war with Iran began.

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

   3M climbed 7.3% 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 8.8% after the toy maker said its Magic: The Gathering game 
topped $500 million in revenue for a quarter for the first time. It also raised 
its revenue forecast for the year.

   General Motors cruised 4.9% 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% 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.

   Homebuilder D.R. Horton slipped 0.9% 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 homebuyers.

   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.

   All told, the S&P 500 rose 65.92 points to 7,509.20. The Dow Jones 
Industrial Average gained 385.38 to 52,224.64, and the Nasdaq composite climbed 
329.13 to 25,837.21.

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

   In Asia, stocks swung more. South Korea's Kospi jumped 3.6% 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% so far this year 
even with its 20% drop through July.

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