Financial Markets Review | July 27–31, 2026

The coming week could be one of the most important of the summer. Investors will have to digest a Federal Reserve decision, U.S. GDP and inflation data, a wave of mega-cap technology earnings and continued geopolitical uncertainty surrounding Iran and global energy supplies.

Wall Street enters the week after a sharp decline in technology and AI-related stocks. Investors are becoming increasingly concerned that spending on artificial intelligence infrastructure is rising faster than the revenues and free cash flow generated by those investments.

At the same time, the recent surge in oil prices toward $100 per barrel has revived inflation concerns and pushed bond yields higher.

U.S. equities

The central question is no longer whether companies are investing in AI. It is whether those enormous investments in data centers, chips and cloud infrastructure will produce an adequate return for shareholders.

Strong results and optimistic guidance from Microsoft, Meta, Apple and Amazon could stabilize the technology sector and bring buyers back into the major indexes.

However, higher capital expenditure, weaker free cash flow or cautious guidance could deepen the correction and accelerate the rotation toward energy, defense, healthcare, financial and value stocks.

Federal Reserve

The Federal Reserve will meet on July 28–29, with the policy statement scheduled for Wednesday at 2:00 p.m. Eastern Time, followed by the press conference at 2:30 p.m.

The base case is for rates to remain unchanged. Nevertheless, higher oil prices and persistent inflation pressures could produce a more hawkish message.

Investors will focus on whether the Fed views the energy shock as temporary, whether inflation risks are increasing and whether another rate increase remains possible later this year.

GDP and inflation

Thursday will bring the advance estimate of second-quarter U.S. GDP, together with June personal income, spending and PCE inflation.

The U.S. economy grew at a 2.1% annualized rate in the first quarter, following growth of only 0.5% in the final quarter of 2025.

The ideal market outcome would be moderate economic growth accompanied by easing inflation.

Stronger-than-expected growth and inflation could reinforce expectations of tighter monetary policy. A sharp slowdown, however, could raise concerns over future corporate earnings.

Earnings season

More than one-third of S&P 500 companies are expected to report during the week. Investors will focus not only on revenue and earnings growth, but also on margins, capital expenditure, cash flow and forward guidance.

Key reports include:

• Microsoft: Wednesday after the close.

• Meta: During the week.

• Apple: Thursday after the close.

• Amazon: Thursday after the close.

• Visa, PayPal, Starbucks and Coca-Cola: During the week.

• Chevron and ExxonMobil: Friday.

Microsoft has confirmed its July 29 earnings release, while Apple and Amazon will report on July 30.

Bonds

Treasury yields will remain a crucial driver of equity valuations.

Higher oil prices are lifting inflation expectations and making it harder for the Fed to signal lower rates. A decline in yields following the Fed meeting could support technology and other growth stocks.

Continued increases in yields would create additional pressure on high-multiple equities, real estate stocks and other interest-rate-sensitive sectors.

Oil and commodities

Brent crude moved above $100 per barrel during the previous week before retreating toward $97.

Persistently high oil prices could raise inflation, reduce consumer purchasing power and pressure transportation and consumer companies. Energy producers, oil-service companies and defense stocks could continue to benefit.

A geopolitical de-escalation and a decline in crude prices would provide relief for equities. A renewed move above $100 would revive stagflation concerns.

Gold and silver

Gold is trading around the psychologically important $4,000 area, while silver remains near $58 an ounce.

Geopolitical uncertainty supports safe-haven demand, but a stronger dollar and higher bond yields limit the upside.

A hawkish Fed could pressure precious metals in the short term. Lower yields, a weaker dollar or renewed geopolitical escalation could support another move higher.

Foreign exchange

The dollar is supported by safe-haven demand, rising Treasury yields and expectations that U.S. interest rates will remain elevated.

The Japanese yen remains close to multi-decade lows, increasing the possibility of policy action or foreign-exchange intervention. The euro could remain vulnerable if energy prices continue to rise.

Bitcoin and crypto

Bitcoin is trading around $64,000–$65,000 heading into the week.

Crypto markets will be particularly sensitive to the Fed, bond yields and the dollar.

A dovish Fed, lower yields and a technology-sector recovery would be supportive. A hawkish surprise, stronger dollar or further Nasdaq weakness could produce another sharp decline.

At present, Bitcoin is behaving more like a liquidity-sensitive risk asset than a traditional safe haven.

Tel Aviv Stock Exchange

Israeli equities will continue to respond primarily to geopolitical developments, energy prices and the direction of U.S. markets.

Defense and energy shares may remain relatively resilient, while real estate and highly leveraged companies are more vulnerable to rising bond yields.

Banks and insurers may benefit from high interest rates but remain sensitive to changes in Israel’s risk premium and domestic economic activity.

The Tel Aviv Stock Exchange has operated on a Monday-to-Friday schedule since January 2026.

Key events

Monday: Durable-goods data and corporate earnings.

Tuesday: Federal Reserve meeting begins, consumer confidence and major corporate reports.

Wednesday: Fed decision and press conference; Microsoft and Meta earnings.

Thursday: U.S. GDP, PCE inflation, jobless claims; Apple and Amazon earnings.

Friday: Employment Cost Index, Chicago PMI, consumer sentiment; Chevron and ExxonMobil earnings.

Weekly conclusion

This is a week in which the market’s three most important forces — interest rates, corporate earnings and geopolitics — will collide.

A positive outcome requires strong earnings, a balanced Fed message and some moderation in oil prices and bond yields.

Disappointing technology results, a hawkish Fed or another move in oil above $100 could deepen the correction, particularly in technology and AI-related stocks.