Posts made in July 2026

Stocks fell last week as the chip-stock trade entered a selloff phase, despite upbeat news on inflation.

The Standard & Poor’s 500 Index fell 1.55 percent, while the Nasdaq Composite Index declined 2.90 percent. The Dow Jones Industrial Average slipped 0.93 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.80 percent.^1,2

Chip Stocks Under Pressure 

Renewed tensions in the Middle East gripped investors as the week kicked off. Stocks slid broadly as oil prices climbed.³

On Tuesday, investors cheered news of the first drop in consumer inflation in six years. The following day, an unexpected drop in wholesale inflation prompted investors to rethink the Fed’s next move on short-term interest rates.^4,5

But on Thursday, the S&P 500 opened lower as chip stocks dragged the broader market lower once again.⁶

As the week wrapped up, the S&P lost over 1 percent on Friday, while the Nasdaq fell 1.4 percent as investors appeared to rotate out of chip stocks and other tech names in favor of other sectors.⁷

Footnotes And Sources

<sup>1. WSJ.com, July 17, 2026
2. Investing.com, July 17, 2026
3. CNBC.com, July 13, 2026
4. WSJ.com, July 14, 2026
5. CNBC.com, July 15, 2026
6. CNBC.com, July 16, 2026
7. CNBC.com, July 17, 2026</sup>

Stocks largely advanced over a V-shaped week as the AI trade, led by chip stocks, pushed the S&P 500 and Nasdaq averages higher amid renewed conflict.

The Standard & Poor’s 500 Index rose 1.23 percent, while the Nasdaq Composite Index advanced 1.74 percent. The Dow Jones Industrial Average declined 0.50 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 1.42 percent.^1,2

Tech-Led Rise Past Geopolitical Concerns

Stocks rose to start the week, with the Dow hitting another record close and the Nasdaq climbing more than 1 percent as investors shook off valuation concerns that plagued AI stocks over the past few weeks.³

The Dow hit a new intraday high on Tuesday before its two-day slide, along with the S&P 500 and Nasdaq, through the week’s lows midday Wednesday. That said, the Nasdaq eked out a slight gain on Wednesday after chip stocks recovered.^4,5

After hitting its midweek bottom, stocks climbed through the end of the week. Chip stocks led the rally, pushing higher amid continued Middle East conflict, even as reports emerged that mediators were trying to get the U.S. and Iran back to the negotiating table. A handful of big tech names led the broad market’s rise to finish the week strong, with the S&P 500 and Nasdaq each gaining more than 1 percent on Friday.^6,7

A ‘Family Fight’, Vexed by Inflation

Minutes from the Fed’s June meeting were released on Wednesday and revealed a Fed divided and unsure of how to proceed without more inflation data.

Fed officials offered opposing arguments at the meeting about whether to raise or lower interest rates. Fed Chair Warsh called the debate a “family fight” and gave little forward guidance on where the next decision was leaning, adding they would continue to assess “incoming information” on inflation.⁸

Footnotes And Sources

<sup>1. WSJ.com, July 10, 2026
2. Investing.com, July 10, 2026
3. WSJ.com, July 6, 2026
4. CNBC.com, July 7, 2026
5. CNBC.com, July 8, 2026
6. CNBC.com, July 9, 2026
7. CNBC.com, July 10, 2026
8. CNBC.com, July 8, 2026</sup>