Major indexes rise on chip, memory stocks

What happened: On Tuesday, major U.S. indexes rose, led by semiconductor stocks. The S&P 500, Dow Jones, and Nasdaq 100 closed up 0.89%, 0.74%, and 1.93% respectively. The PHLX Semiconductor Index (SOXX) surged over 6%, with key players like Micron (MU), SK Hynix (SKHY), Intel (INTC), and AMD (AMD) jumping 8% to 10%. This rally was fueled by strong earnings and positive analyst coverage, with SanDisk's (SNDK) datacenter revenue surging 645% YoY.

Market impact: The semiconductor sector's rally pushed the S&P 500 to record highs, with the SOXX ETF jumping 6% in a single session. This was driven by increased demand for AI-related stocks, with NVIDIA's (NVDA) upcoming earnings serving as a key catalyst. The tech-focused Nasdaq Composite led the gains, up 2.65%, while the Dow Jones and S&P 500 also posted solid gains. Asian markets followed suit, ending mostly higher on Wednesday.

What to watch next: Investors should monitor NVIDIA's earnings, scheduled for August 24, which could provide further impetus for the semiconductor rally. Additionally, the U.S. inflation reading due later this week will provide clarity on the Federal Reserve's interest rate outlook, potentially impacting tech stocks. Lastly, keep an eye on the technical levels of key semiconductor stocks, as a break above recent highs could signal further upside.