WEEKLY MARKET RECAP – July 10, 2026

The S&P 500 gained more than 1% and the NASDAQ advanced nearly 2%, extending both indexes’ winning streaks to a second consecutive week. Since early June, the market has largely oscillated between modest gains and losses as investors continue weighing AI-related spending, developments in the Middle East, and persistently high oil prices.

With second-quarter earnings season set to begin, Wall Street analysts slightly raised their forecasts. FactSet data showed expected earnings growth for S&P 500 companies increasing to 23.6%, up from 23.3% a week earlier. If realized, it would mark a second straight quarter of earnings growth above 20%.

Treasury prices declined for a second consecutive week, pushing yields to their highest levels since mid-May as investors remained concerned about inflation and the interest rate outlook. The 10-year Treasury yield rose to 4.56%, up from 4.37% two weeks earlier, while the 30-year yield climbed to 5.06% from 4.87%.

The Dow set another record close on Monday at 53,055.9 but was unable to sustain the momentum, retreating over the following two sessions to finish the week down 0.5%. The S&P 500 ended the week about half a percentage point below its June 2 record high, while the NASDAQ remained more than 3% below its peak from the same date.

Oil prices were volatile as renewed tensions in the Middle East raised questions about the durability of the U.S.-Iran ceasefire. U.S. crude briefly climbed to roughly $76 per barrel on Wednesday before easing back to around $71 by Friday afternoon.

Market volatility continued to subside. The Cboe Volatility Index fell for a second straight week, closing at 15.0—its lowest level in more than six months and well below the recent high of 22.2 reached on June 10.

Small-cap stocks underperformed large caps, trimming some of their earlier leadership in 2026. The Russell 2000 declined 0.6% for the week, while a comparable large-cap benchmark gained 1.0%.

The week ahead features several key events. Federal Reserve Chair Kevin Warsh is scheduled to testify before House and Senate committees on Tuesday and Wednesday, providing an update on monetary policy. Investors will also closely watch Tuesday’s Consumer Price Index report for the latest reading on U.S. inflation.