Weekly Market Review | July 20–24, 2026

The coming trading week is likely to be shaped by two opposing forces. On one side, earnings season is moving into major technology, semiconductor and industrial companies. On the other, renewed Middle East tensions, sharply higher oil prices and concerns about inflation are returning to the center of the market narrative.

Investors will attempt to determine whether the recent weakness in technology and semiconductor stocks is simply a correction after a powerful rally, or the beginning of a broader change in market leadership.

Last Week in Review

Wall Street ended the week lower. The S&P 500 declined about 1.6%, the Nasdaq lost 2.9%, the Dow Jones fell 0.9% and the Russell 2000 slipped 0.5%. Despite the weekly decline, the major indices remain positive for 2026, with the S&P 500 up approximately 8.9% and the Nasdaq gaining 9.8%.

Semiconductors were at the center of the selloff. The Philadelphia Semiconductor Index fell roughly 20% from its recent peak as investors questioned the sustainability of AI capital spending, rising Chinese competition and the ability of companies to convert massive infrastructure investment into profits.

Oil prices surged as tensions between the United States and Iran intensified and concerns increased about energy infrastructure and shipping through the Strait of Hormuz. U.S. crude ended Friday near $82.50 per barrel, while Brent traded near $88.10.

The Main Theme: Technology Earnings and the AI Test

Earnings season now moves from the large banks toward technology, autos, semiconductors, defense and industrial companies.

Alphabet reports on Wednesday. Investors will focus on advertising growth, Google Cloud, YouTube, the integration of AI into Search and, most importantly, capital expenditure on data centers and AI infrastructure. Because Alphabet is a major source of demand across the AI supply chain, any change in its investment outlook could affect semiconductor, server, networking and power-infrastructure stocks.

Tesla is also scheduled to report on Wednesday. Beyond vehicle deliveries and automotive margins, attention will be directed toward robotaxis, autonomous driving, the Optimus robot and the company's ability to turn its AI vision into measurable revenue.

Intel reports on Thursday. Its results will be particularly important following the recent semiconductor selloff. Investors will examine data-center demand, PC trends, manufacturing progress and Intel's ability to compete in the AI chip market.

Other companies reporting during the week include 3M, General Motors, Northrop Grumman, Lockheed Martin, Texas Instruments, Thermo Fisher, Comcast, American Express, Verizon and HCA Healthcare.

Expectations are extremely high. Estimates suggest S&P 500 earnings may grow by more than 20% from a year earlier. This means that even solid results may not be enough if management guidance is cautious or AI spending continues to rise faster than revenue.

Federal Reserve: A Quiet Week Before the Decision

The U.S. economic calendar is relatively light ahead of the Federal Reserve meeting on July 28–29.

The Conference Board Leading Economic Index will be released Monday. Initial jobless claims are scheduled for Thursday, while Friday brings the preliminary S&P Global manufacturing and services PMIs and June new-home sales.

The main challenge for the Fed is the tension between softer recent inflation data and higher oil prices. If energy prices remain elevated, investors may reduce expectations for future rate cuts and consider the possibility of a more restrictive policy stance.

Europe: ECB Rate Decision

The European Central Bank's rate decision will be the main European event of the week.

Following its June rate increase, all 74 economists surveyed by Reuters expect the ECB to leave the deposit rate unchanged at 2.25%. Attention will shift to Christine Lagarde's press conference and whether the energy-price rebound increases the probability of another hike in September.

A hawkish message could strengthen the euro and push European bond yields higher. A more cautious message may support equities but could weaken the currency.

China and Asia

China is expected to announce its one-year and five-year Loan Prime Rates on Monday. Most market participants expect the rates to remain unchanged at 3.0% and 3.5%, respectively, for a 14th consecutive month.

China's economy continues to show a divided picture, with relatively resilient exports and industrial production but weak domestic consumption and property activity. Investors will look for signs of additional fiscal support during the second half of the year.

Bonds and the U.S. Dollar

U.S. Treasuries regained some defensive demand as equity markets fell, sending yields lower late in the week. However, higher oil creates a complicated environment. Geopolitical risk supports bonds, while persistent energy inflation could eventually push yields higher.

The U.S. dollar could strengthen if oil continues rising and markets price a higher-for-longer Fed stance. A hawkish ECB, however, could support the euro and limit dollar appreciation.

Oil, Gold and Commodities

Oil may be the single most important asset to monitor this week. After rising more than 15% last week, any development involving the Strait of Hormuz, Gulf energy facilities or a U.S. military response could trigger another sharp move.

Higher oil would support energy stocks but could pressure airlines, transportation, industrial and consumer companies. It could also weigh on growth stocks by increasing inflation and interest-rate risks.

Gold ended the week close to $4,000 per ounce. Although it rose Friday, it lost approximately 2.6% for the week as inflation and rate concerns outweighed safe-haven demand.

Gold is therefore caught between two forces: geopolitical escalation supports it, while higher real yields and tighter monetary-policy expectations work against it.

Crypto

Bitcoin traded near $64,000 during the weekend after briefly falling below $63,000. Ethereum also remained under pressure.

Crypto continues to behave primarily as a risk asset rather than a safe haven. Weakness in the Nasdaq and technology shares could place further pressure on Bitcoin. Strong earnings from Alphabet or Tesla, combined with stabilization in growth stocks, could improve risk appetite.

The $62,000–$64,000 area will be important in the near term. A decisive break below this range could increase selling pressure, while a recovery above recent resistance would provide the first indication of stabilization.

Tel Aviv Stock Exchange

The TA-125 ended the week near 4,081 points after a modest decline Friday, but it remains approximately 32% higher than a year earlier.

Israeli markets will continue to react primarily to regional security developments, oil prices, the shekel and global equity sentiment. Defense and energy shares may continue to attract interest, while real estate, consumer and highly leveraged companies could face pressure if bond yields rise.

Israel's economy contracted by 3.8% in the first quarter amid the conflict with Iran, highlighting the contrast between the strength of the equity market and weakness in the real economy.