Weekly Market Performance — July 24, 2026

LPL Research provides its Weekly Market Performance for the week of July 20, 2026. U.S. equities traded lower on the week as investor worries around the costs and returns of artificial intelligence investments tamped risk appetite. At the same time, rising geopolitical tensions in the Middle East pushed oil prices higher, and renewed concerns about inflation and additional energy supply disruptions weighed on global market sentiment. International markets were mixed, with Europe posting modest gains while Asia-Pacific market performance was scattered. Fixed income markets came under pressure as rising oil prices fueled an increase in expectations for higher interest rates with yields around the globe reaching notable highs. 

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 7/24/26 @ 3:23 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Major U.S. averages ended a jittery week of trading in the red amid strong micro and macro catalysts. The first batch of big tech earnings was arguably the bigger driver, with Alphabet (GOOG/L) and Tesla (TSLA) leading off high-profile reports Wednesday afternoon. A bounce in chipmakers and momentum names lifted equity benchmarks leading up to the report, but sentiment turned risk-off on renewed worries around whether massive artificial intelligence (AI) spending will pay off. Concerns arrived after GOOG/L hiked its spending target to over $200 billion, while TSLA revealed that it experienced its first cash burn in two years and predicted larger future outlays. Big tech shares sold off Thursday, sending the S&P 500 and Nasdaq below the weekly flatline before stabilizing Friday. 

Simultaneously, markets largely ignored the latest ramp in geopolitical tensions and the subsequent rally in oil prices over the first half of the week. Nonetheless, worries of energy supply disruptions and inflationary pressures were thrust into focus over the latter half of the week after Iran-backed Houthi militants staged attacks on oil tankers in the Red Sea, capping risk appetite.  

International Equities: European equities edged higher after hugging the flatline throughout the week. Escalating geopolitical tensions spurring a rally in crude prices was among the biggest headwinds over the last five days. However, a broadly positive start to the earnings season and some positive macro takeaways contributed to the positive tilt. On the macro front, stronger-than-expected economic activity throughout the Eurozone last month and cooling U.K. inflation were among highlights along with an expected hold in monetary policy from the European Central Bank. Geographically, U.K. stocks outperformed the STOXX 600. Investors digested Andy Burnham’s first week as Prime Minister, in which Downing Street emphasized fiscal restraint and unveiled a 20% cut in business rates for pubs, clubs, and music venues. 

Major Asia-Pacific exchanges ended mixed this week. Greater China was the standout as investors turned to cheaper AI stocks on homegrown enthusiasm following the recent model and data center developments. Plus, buying from state-owned funds and investors bolstered gains. Meanwhile, South Korea remained highly volatile after a long weekend and erased week-to-date gains Friday. Japan was dragged lower by chip and tech-related stocks with rising oil prices, continued yen weakness, and U.S. tariffs also in view. Taiwan held on to gains despite dropping to end the week.

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded lower on the week. U.S. Treasuries tumbled to year-to-date lows amid a global bond sell-off as a result of the latest resurgence in oil prices. Fresh jitters of energy-driven inflationary pressures led markets to add to rate hike expectations, pushing yields from the 10-year through shorter-dated securities near their highest level since early 2025. Week-to-date declines accelerated Thursday as Brent Crude breached $100 per barrel, with additional upward pressure on yields from an unexpected drop in new jobless claims to their lowest level since 1969. In global bonds, U.K. gilts set their longest period of daily closes above 5% in nearly 20 years while the five-year Japanese government bond reached its highest level since its debut in 2000. However, Treasuries pared gains to end the week as oil prices cooled from weekly highs with attention turning toward a busy week of auctions next week.

Commodities and Currencies: The broader commodity complex rose this week. Oil was thrust back into focus as Brent crude briefly surpassed $100 per barrel while West Texas Intermediate (WTI) traded above $95 per barrel on Thursday. After a ticking higher, oil flows out of the Strait of Hormuz trended lower for a second week as the U.S. and Iran exchanged strikes for the 13th straight day Friday. Prospects of an immediate diplomatic resolution and a resumption of oil shipments dwindled after tankers were hit by Houthi forces in the Red Sea, a key alternative route to the Strait of Hormuz. However, reports of negotiations circulated to end the week, leading oil to trim weekly gains. Gold prices edged higher, supported by key technical levels and shrinking bets of looser monetary policy from the Federal Reserve. The latter also supported the U.S. dollar, as well as weakness in the euro and Japanese yen.

Economic Weekly Roundup

The U.S. macro calendar was light over the last five days. The highest profile results came from a surprise drop in jobless claims and better-than-expected composite economic activity data supporting the resilient economy narrative. Amid the relatively quiet schedule of releases, tariffs returned to the headlines. Canada was in the crosshairs this week as the President exercised authority to impose up to 50% tariffs on countries deemed to discriminate against U.S. commerce under Section 338 of the Tariff Act of 1930. Despite going broadly unused since the 1930s, the action against Canadian motor vehicles, alcohol, and dairy imports appears to be a modern use of exactly this authority, demonstrating that a dormant trade weapon can be activated without new congressional legislation. The White House also threatened new tariffs on the European Union (EU) in retaliation to a $1 billion fine imposed by the EU for violating its Digital Markets Act and rolled out new Section 301 tariffs of around 10% against 60 different countries for failing to enforce bans on forced labor.

For the global economy, the move raises the risk of retaliatory tariffs, greater uncertainty around North American supply chains, and a broader weakening of rules-based trade agreements, increasing costs for businesses and consumers.

Overseas, July business activity in the Euro area improved from the weak first half of the year. The services sector grew slightly after months of contraction, according to S&P Global Eurozone Services PMI. In addition, the German manufacturing sector improved month to date as the output index increased to a multi-year high. High energy prices and tightening financial conditions are weighing on the region, but this morning’s economic data show the region’s businesses are reviving. After yesterday’s press conference by Christine Lagarde, investors are pricing in a greater chance of a rate hike at the next European Central Bank (ECB) meeting in September. No change was made at yesterday’s meeting. The Federal Reserve is meeting next week, and probabilities are rising that the committee keeps rates unchanged, which is our baseline expectation.

The Week Ahead

The following economic data is slated for the week ahead:

• Monday: Durable Goods Orders (Jun preliminary), Capital Goods Orders and Shipments (Jun preliminary), Dallas Fed Manufacturing Activity (Jul)
• Tuesday: ADP Weekly Employment Change (Jul 11), Advance Goods Trade Balance (Jun), Retail Inventories (Jun), Wholesale Inventories (Jun preliminary), FHFA House Price Index (May), S&P Case-Shiller 20-City and National Home Price Indexes (May), Richmond Fed Manufacturing Index and Business Conditions (Jul), Conference Board Consumer Confidence (Jul), Dallas Fed Services Activity (Jul)
• Wednesday:  MBA Mortgage Applications (Jul 24), FOMC Rate Decision (Jul 29)
• Thursday: Personal Income and Spending (Jun), Headline and Core PCE Price Index (Jun), Initial Jobless Claims (Jul 25), GDP (2Q first reading), Personal Consumption (2Q first reading), Continuing Claims (Jul 18), Core PCE Price Index (2Q first reading) 
• Friday: Employment Cost Index (2Q), MNI Chicago PMI (Jul), University of Michigan Consumer Sentiment Report (Jul final)