Financial Markets                      07/21 09:32

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

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

   The S&P 500 rose 0.5%. The Dow Jones Industrial Average was up 327 points, 
or 0.6%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 0.8% 
higher.

   AI stocks were once again 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 AI investments may fall off if 
they don't produce as much profit and productivity as promised.

   Micron Technology jumped 6% and added to its 1.9% gain from the day before, 
coming off its 13.3% drop from last week. Advanced Micro Devices rose 4.3%, 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 $90 per barrel because of continued attacks between the United States 
and Iran. It rose 2.2% to $91.17, 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 it 
was 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 climbed to 4.62% 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 that added pressure.

   3M climbed 9.9% 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 jumped 10.6% 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 3.8% 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 12.2% 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 slower than Wall Street expected.

   Homebuilder D.R. Horton slipped 0.2% despite also 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 were mixed in Europe amid mostly modest 
movements. The United Kingdom's FTSE 100 added 0.1% 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 for July so far.

   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.

   ___

   AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

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