* Indexes up: Dow 0.3%, S&P 500 0.4%, Nasdaq 0.7%

* 3M ( MMM ) rises after lifting annual profit forecast

* Danaher ( DHR ) falls after cutting annual revenue growth forecast

* Trump prepares fresh tariffs on dozens of countries, FT

reports

(Updates after market open)

By Ragini Mathur and Avinash P

July 21 (Reuters) - Wall Street's main indexes rose on

Tuesday, as a recovery in semiconductor shares helped shift the

focus from concerns over fresh developments in the Middle East,

while investors awaited major tech earnings for clues on the

future of the AI trade.

U.S. forces launched fresh strikes in Iran's south and west

in retaliation for the deaths of American soldiers. A senior

Iranian official told Reuters on Monday that Tehran had received

a proposal from mediators for a 10-day ceasefire.

Brent crude futures jumped over $90 a barrel following the

strikes.

Recently battered semiconductor stocks were leading gains.

The Philadelphia SE Semiconductor index climbed 3.7%,

rising for the second consecutive day.

The index ended Friday more than 20% below its late-June

record high, confirming a bear-market decline. But the chip

gauge is up nearly 72% on a year-to-date basis.

SanDisk ( SNDK ), Western Digital ( WDC ) and Micron

Technology ( MU ) were up between 7.7% and 10.2%.

Lately, chip stocks have come under heavy pressure, as

investors question whether this year's powerful rally in the

sector has gone too far and scrutinize the lack of tangible

returns on hefty investments by hyperscalers.

On the benchmark S&P 500, information technology

led the gains with a 1.3% rise.

"Investors have to juxtapose strong earnings against the

ongoing war with Iran," said Art Hogan, chief market strategist

at B. Riley Wealth.

"To end this tug-of-war, we need to hear from hyperscalers

like Alphabet reaffirming their CapEx spending plans. Such

affirmation from large players is likely to put a floor under

the drawdown in semiconductor names."

At 09:57 a.m. ET, the Dow Jones Industrial Average

rose 171.34 points, or 0.33%, to 52,010.60, the S&P 500

gained 30.20 points, or 0.41%, to 7,473.48 and the Nasdaq

Composite gained 172.68 points, or 0.68%, to 25,680.75.

Investor focus this week will turn to results from Alphabet

and Intel ( INTC ), which could help determine whether

the AI trade has further room to run amid elevated profit

expectations.

Adding to the uncertainty, President Donald Trump on Monday

unveiled 50% tariffs on a wide range of imports from Canada.

The Financial Times reported that Trump is also expected to

impose fresh tariffs on dozens of countries as soon as this

week, with his 10% global tariff poised to expire on Friday.

Among early movers, 3M ( MMM ) shares gained 9.5% after the

industrial giant lifted its full-year profit forecast.

Danaher ( DHR ) fell 13% after the life sciences firm

trimmed its core revenue growth outlook and reported

weaker-than-expected revenue in its biotechnology business.

MSCI ( MSCI ) was down 11% after the index provider raised

its full-year operating expense forecast despite

better-than-expected quarterly revenue.

Software stocks were also under pressure after Morgan

Stanley cut ratings and price targets on some names.

Adobe, Intuit, Workday and

Salesforce ( CRM ) fell between 1.5% and 2.6%.

Advancing issues outnumbered decliners by a 1.19-to-1 ratio

on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and five new lows,

while the Nasdaq Composite recorded 22 new highs and 64 new

lows.