WEEKLY MARKET RECAP – July 24, 2026

The major U.S. indexes posted mixed results for the week, with the S&P 500 and Dow ending modestly lower while the NASDAQ fell more than 2%. Stocks continued to swing between gains and losses, extending the choppy trading pattern that has persisted since the S&P 500 and NASDAQ reached record highs in early June.

Renewed escalation in the Middle East and ongoing shipping disruptions in the Persian Gulf and Red Sea drove oil prices sharply higher. U.S. crude traded near $90 per barrel on Friday afternoon, up from approximately $82 the previous week and around $69 in early July.

Treasury prices declined for a second consecutive week, pushing yields higher ahead of the Federal Reserve’s policy meeting. The 10-year Treasury yield climbed to roughly 4.70% on Thursday—its highest level in more than 18 months—before ending the week at 4.68%. Yields on the two-year and 30-year Treasuries also rose significantly, closing Friday at 4.33% and 5.17%, respectively.

Corporate earnings expectations surged after a major technology company delivered stronger-than-expected quarterly results. According to FactSet, analysts now expect S&P 500 companies to report average second-quarter earnings growth of 37.9%, a sharp increase from the 24.8% forecast just one week earlier. The revised estimate reflects both the results already reported by roughly one-quarter of S&P 500 companies and updated projections for those yet to announce earnings.

Government bond yields also moved higher across major international markets. In the United Kingdom, the 10-year gilt yield climbed above 5.00%, while Germany’s 10-year government bond yield reached its highest level since 2011. In Japan, long-term yields approached levels not seen since the 1990s.

Higher bond yields continued to pressure the U.S. housing market by driving mortgage rates upward. Freddie Mac reported that the average rate on a 30-year fixed mortgage rose to 6.58%, its highest level in nearly a year. Rates had briefly fallen below 6.00% in February, fueling hopes for a housing recovery, but recent increases have renewed concerns about affordability and slowing home sales.

On Friday, the Trump administration announced new tariffs ranging from 10.0% to 12.5% on imports from dozens of major U.S. trading partners, including the European Union. The measures follow the expiration of a temporary 10.0% global tariff that had been implemented in February 2026 after the U.S. Supreme Court invalidated the previous tariff framework.

Looking ahead, investors will focus on another busy week of earnings reports, along with the Federal Reserve’s policy decision on Wednesday. Markets will also closely watch Thursday’s initial estimate of second-quarter GDP growth and the latest Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred measure of inflation.