0721 | Markets Rally on AI Rebound, GM Earnings Beat, and Oil Surge Amid Trade Concerns

Mia: From Bri, this is After Market. I'm Mia.

Milo: And I'm Milo. The Nasdaq 100 surged today, powered by a rebound in chipmakers at the center of the AI trade.

Mia: General Motors raised its 2025 earnings forecasts after a beat. And oil hit a five-week high as US-Iran strikes and a Houthi blockade threat roiled crude markets.

Milo: Plus, the US trade representative is signaling new tariffs on dozens of countries. Let's get into it.

Milo: The Nasdaq 100 advanced Tuesday, lifted by a rebound in chipmakers at the center of the artificial-intelligence trade. That move overshadowed the re-escalation in the US-Iran war.

Mia: Taiwan Semi jumped during the session, helping drive the tech-heavy index higher. At the same time, an aerospace name slid, but the chipmaker strength carried the day.

Milo: On the bond side, US Treasuries fell, pushing 10- and 30-year yields to their highest levels in about two months. The surge in crude oil prices is stoking concern that inflationary pressures will prompt the Federal Reserve to raise interest rates.

Mia: That oil move ties back to the Iran situation. The latest cycle of US strikes was reported alongside word that regional mediators have presented Washington and Tehran with a proposal for a 10-day ceasefire.

Milo: And there's more pressure in the region. Houthi rebels also threatened Saudi Arabia shipping, adding another layer of supply risk to the crude market. So you've got equities rallying on AI, but yields climbing on inflation fears tied directly to oil.

Mia: General Motors raised several key earnings forecasts for 2025 after beating Wall Street expectations for the second quarter. The company cited resilient consumer demand and strong pricing.

Milo: North American operations continue to drive results, and separately, GM boosted its 2026 outlook specifically on premium pricing for its big trucks.

Mia: CEO Mary Barra also announced that the next-generation Cadillac lineup will include new versions of the CT5 sedan, the XT5 midsize SUV, and the previously discontinued three-row XT6 SUV — all with gas-powered engines.

Milo: That's a notable pivot. The automaker is pulling back on some electric vehicle plans while doubling down on internal combustion Cadillacs.

Mia: And there's a ripple effect here for the chip sector. GM also provided memory chip guidance that could help stabilize stocks for chipmakers like Micron and Sandisk.

Milo: Oil prices climbed to a five-week high, driven by US-Iran attacks and a Houthi blockade threat that ignited a new surge in crude markets.

Mia: Three oil tankers have already made U-turns in the southern Red Sea after direct warnings from Houthi rebels in Yemen that they would target ships heading to or from Saudi ports.

Milo: And it's not just tankers diverting. Indian state-run refiners suspended crude loadings from Iraq because mounting security risks in the Strait of Hormuz are making it increasingly difficult to ensure vessel safety, according to people familiar with the matter.

Mia: The benchmark diesel price recorded its second-largest jump since the war began. These supply disruptions and rising energy costs pushed US Treasuries lower, sending 10- and 30-year yields to their highest levels in about two months.

Milo: The concern is straightforward — if crude keeps climbing, that feeds into inflation, and the market starts pricing in the possibility that the Federal Reserve will have to raise interest rates.

Mia: US Trade Representative Jamieson Greer signaled that the Trump administration could introduce new tariffs on dozens of countries, telling markets to quote, expect action soon.

Milo: The warning arrived just as other duties are set to expire, raising the prospect of a fresh round of trade measures without a pause. Greer's comments did not name specific targets but framed the move as an active near-term step, not a distant possibility.

Mia: Meanwhile, the relationship with Canada continues to deteriorate under Trump's tariff-heavy agenda and his open criticism of the trilateral trade pact with Mexico.

Milo: The White House separately announced it would impose 50-percent tariffs on certain Canadian goods, citing alleged trade discrimination. So you've got new tariffs looming broadly, and a specific escalation with one of America's largest trading partners.

Milo: SpaceX stock rose Tuesday, breaking a seven-day losing streak after the company scheduled its first earnings report for August 4.

Mia: That report triggers the expiration of a lock-up period, clearing the way for what is described as one of the largest share unlocks ever. As much as 116 billion dollars of stock could become eligible for sale the following month.

Milo: That's a massive number. Investors are watching closely because when that much stock becomes available, it can create real pressure on the share price — but for now, the market seems focused on getting those earnings results first.

Mia: Intel's foundry business signed its first publicly named customer under CEO Lip-Bu Tan, who took over in March 2025. Fortinet will use Intel's chip manufacturing for security chips.

Milo: That's a meaningful win for Tan as he works to turn the foundry operation around. Meanwhile, Nvidia disclosed new details about its next-generation data-center CPU called Vera.

Mia: The disclosure gives prospective customers the information they need to fully evaluate the chip, and it sets up more direct competition with AMD and Intel in the data-center CPU space.

Milo: Elsewhere in tech, Google expanded its Gemini model family with cheaper, more efficient versions and launched a new cybersecurity offering intended to close product gaps and compete on cost.

Mia: On the policy side, US Treasury Secretary Bessent said the United States could sanction China over alleged AI model theft. And on the analyst front, downgrades of Adobe and Salesforce added to broader AI-related market fears.

Milo: That's After Market for today. I'm Milo.

Mia: And I'm Mia. Thanks for listening.