Month: July 2026

Markets closed a volatile week lower as oil, inflation fears, and mega-cap tech earnings collided. Brent crude swung wildly on Middle East escalation before a US-Iran strike pause brought relief, while Alphabet and Tesla’s soaring AI capex spooked investors, dragging the Nasdaq down nearly 2%.

Oil spiked 10-14% as US-Iran strikes intensified Hormuz tensions, while soft CPI/PPI data eased Treasury yields but left Fed rate-cut odds hanging on energy-driven inflation risks. US equities slid on AI capex jitters, with semiconductors and Netflix leading losses despite strong Q2 earnings. Gold dipped toward $4,000 before recovering, torn between dovish inflation and hawkish oil-driven rate expectations.

Geopolitics dictated market tone last week as Hormuz-linked oil volatility, a hawkish Fed tilt, and rising yields tested investor nerves. Yet US equities ground out gains, powered by Meta’s blockbuster rally and SK Hynix’s record-breaking IPO. Focus now shifts to a pivotal week ahead with CPI data, Fed Chair Warsh’s testimony, and Q2 earnings season kicking off. And, of course, the renewed escalation in hostilities between US and Iran.