Market indices experienced slight upward movements on Monday, July 21, 2025, as the quarterly earnings reporting period commenced. The S&P 500 concluded the trading day with a fractional increase, marking an unprecedented closing level above 6,300 points, while the Nasdaq extended its series of record closes. The Dow Jones Industrial Average, however, finished marginally lower after fluctuating throughout the session.

Verizon Communications (VZ) led the S&P 500 in gains, with its stock appreciating by 4%. The telecommunications giant reported second-quarter sales and profits that surpassed expectations and subsequently raised the lower end of its full-year profit outlook. This robust performance was attributed to significant growth in broadband internet subscribers and an uptick in wireless retail core prepaid customers.

Hershey (HSY) also saw its shares rise by 3.2% on Monday, building on previous gains. This positive movement was supported by recent data from the U.S. Census Bureau indicating a stronger-than-anticipated increase in retail sales during June. This sustained consumer spending, despite ongoing tariff concerns, signaled a favorable demand environment for the chocolate manufacturer, which has been navigating the complexities of elevated cocoa prices.

In the commodities market, gold prices ascended to their highest point in over a month. This rally was fueled by a weakening U.S. dollar, uncertainties surrounding President Trump's upcoming tariff deadline in August, and growing anticipation of potential interest rate reductions by the Federal Reserve later in the year. Newmont (NEM), the world's leading gold mining corporation, saw its shares increase by 2.9%.

Shares of Alphabet (GOOGL), Google's parent company, advanced by 2.7% ahead of its impending quarterly earnings release scheduled for Wednesday afternoon. Analysts from prominent financial institutions like Morgan Stanley and Bank of America revised their price targets upwards for Alphabet stock. Their optimistic projections were primarily based on expected growth driven by advancements in generative artificial intelligence and increased advertising expenditures within Google Search.

Conversely, natural gas futures prices experienced a sharp decline of approximately 7%. This downturn was primarily influenced by persistently high production levels and meteorological predictions indicating cooler summer temperatures across certain regions of the U.S., which would subsequently reduce demand for natural gas in air conditioning. Consequently, companies heavily involved in the natural gas sector were among the poorest performers within the S&P 500 on Monday. EQT Corp. (EQT) stock recorded the most significant loss, falling by 9.5%, while Expand Energy (EXE) shares dropped by 8.5%. Other natural gas-focused entities, including Coterra Energy (CTRA) and Targa Resources (TRGP), also saw their stock values diminish.

Molina Healthcare (MOH) shares decreased by 3.6% after analysts at TD Cowen lowered their price target and full-year earnings estimates for the insurer. The analysts cited elevated medical costs as a contributing factor, impacting the company's medical loss ratio—the proportion of premiums paid out for healthcare claims. This decline for Molina's stock followed a substantial drop late last week, prompted by a competitor, Elevance Health (ELV), which revised its full-year guidance downwards due to high Medicaid and Affordable Care Act expenses.

Overall, Monday's market activity presented a mixed picture, with notable advancements in the telecommunications and consumer goods sectors, while the natural gas industry faced considerable headwinds. The S&P 500 achieved a new high, underscoring continued investor confidence in certain segments of the market despite broader economic and geopolitical considerations.

In a significant boost to the semiconductor industry, analysts at Wells Fargo have upgraded their outlook for Arm Holdings (ARM), a key player in chip design. This positive revision reflects growing optimism surrounding Arm's strategic positioning to capitalize on the burgeoning artificial intelligence sector. The firm's updated price target underscores a strong belief in Arm's capacity for substantial revenue growth, particularly through its royalty business and expanding engagement in AI and custom silicon designs. Investors are keenly awaiting Arm's upcoming quarterly earnings report, which is expected to shed more light on these promising developments.

Wells Fargo Elevates Arm Holdings' Stock Target Amidst AI Surge

In a notable development on a recent Monday, investment analysts at Wells Fargo revised their price target for Arm Holdings (ARM) stock upwards, from $145 to a new benchmark of $175. This bullish adjustment arrives just ahead of the highly anticipated fiscal first-quarter earnings announcement from the chip design titan, slated for July 30. The updated target significantly surpasses the average analyst projection of approximately $143, as compiled by Visible Alpha.

Following this positive analyst sentiment, Arm's shares experienced a robust ascent, climbing more than 3% to close at around $162 on Monday. This recent surge contributes to an impressive year-to-date performance, with the stock having appreciated by approximately one-third in value throughout 2025.

Wells Fargo, in a detailed note to clients on Sunday, highlighted Arm's advantageous position to leverage the expanding landscape of artificial intelligence. The firm specifically pointed to the escalating demand within data centers, a critical component of AI infrastructure, as a primary catalyst for Arm's potential growth. Arm is renowned for developing the foundational CPU designs integrated into chips manufactured by industry giants such as Nvidia, Microsoft, and Alphabet's Google.

The analysts conveyed strong confidence in Arm's royalty business, forecasting sustained robust growth despite prevailing uncertainties surrounding tariffs. They further elaborated that Arm's strategic acceleration in AI initiatives and bespoke silicon designs is poised to be a significant driver, fueling substantial royalty revenue expansion in the current fiscal year.

A Forward-Looking Perspective on Arm's Trajectory

The upgraded price target for Arm Holdings by Wells Fargo signals a compelling narrative within the dynamic semiconductor market. From a journalist's perspective, this underscores the immense transformative power of artificial intelligence across various industries. Arm's foundational role in chip design places it at the very heart of this technological revolution, making its performance a bellwether for the broader AI ecosystem. The emphasis on "expanding AI opportunities" and "meaningful royalty revenue growth" suggests a confident outlook on Arm's ability to not only adapt but thrive in an increasingly AI-driven world. For readers, this news offers valuable insights into potential investment avenues within the tech sector, highlighting the companies that are set to benefit most from the ongoing advancements in artificial intelligence and its widespread adoption. The upcoming earnings report will undoubtedly be a pivotal moment, providing crucial data points to validate these optimistic projections and further illuminate Arm's strategic path forward.