Stock Market Today, July 20: Hut 8 Surges 10% as Geopolitical Tensions Weigh on Broader Market

The S&P 500 (SNPINDEX:^GSPC) slipped 0.19% to 7,443, the Nasdaq Composite (NASDAQINDEX:^IXIC) edged 0.05% lower to 25,508, and the Dow Jones Industrial Average (DJINDICES:^DJI) lost 0.59% to 51,839 as an early-session semiconductor rally lost steam amid mounting geopolitical concerns.

Gold prices gained 0.10% to $4,008.09 as of U.S. market close, and the 10-Year Treasury yield gained 0.02% to 4.59%. Communications and energy stocks led gainers, while technology and industrials fell the most.

Today's biggest moves

Alphabet gained over 3% in intraday trading following reports of a new internal AI chip, before slipping back slightly. Hut 8 surged after announcing a $9.8 billion (artificial intelligence) AI data center lease. Semiconductor and AI infrastructure stocks edged upwards, with Advanced Micro Devices, Micron Technology, Intel, and Coherent all rising. Nike shares fell as geopolitical tensions weighed on global consumer sentiment.

What this means for investors

Escalating U.S.-Iran tensions drove crude oil higher, taking WTI crude to almost $83 per barrel and boosting energy stocks such as Chevron and ExxonMobil. Tech leaders such as Nvidia seemed to erase last week’s losses this morning. However, broader pressure outweighed early resilience, and many heavyweights finished the day with only slight gains.

A slew of earnings due this week from many major companies will give investors more information on the AI trade. Tech stocks could fall further if companies can’t justifiy AI spending levels and think the rally has run its course. However, strong earnings could ease current jitters and see stocks rebound on renewed optimism.

Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Chevron, Coherent, Intel, Micron Technology, Nike, and Nvidia. The Motley Fool has a disclosure policy.