Public Markets 3 Days

Last updated: July 23, 2026, 2:30 PM ET

Middle East Tensions and Oil Prices Drive Market Volatility

Global oil prices for the first time since May amid escalating conflict in the Middle East, impacting various markets. Brent crude’s rise above $100 threatened a prolonged surge in inflation and prompted a reassessments of interest rate expectations. This geopolitical instability also boosted the dollar as investors sought haven assets, while US Treasury yields climbed to their highest levels of the year on increased bets of a Federal Reserve rate hike. The intensifying Iran war has spurred buyers to look elsewhere for supplies, potentially leading to a comeback in US oil exports. Meanwhile, some Asian crude oil buyers to avoid Houthi attacks. Despite the turmoil, some investors, anticipating that low inventories and midterm elections might push the US administration to ease tensions. The Strait of Hormuz closure has also, putting farmers at risk as fuel for irrigation pumps becomes scarce. Kuwait, however despite ongoing missile and drone attacks from Iran, indicating resilient demand for its debt.

Tech Sector Faces Headwinds Amid AI Spending Doubts and Earnings Season

The Magnificent Seven megacap technology stocks as AI skeptics weighed on the sector, marking its biggest one-day decline since April 2025. Doubts about the payoffs from debt-fueled artificial intelligence investment, putting the S&P 500 on track for its worst day in a month. Alphabet Inc. and Tesla Inc.'s earnings reports, with Tesla shares tumbling 11% after discounts hit profits. The company is selling more cars but profit was down due to price cuts and higher expenses. STMicroelectronics, a Franco-Italian chipmaker, adding to concerns about AI spending. Google, however, raised its projections for investing in artificial intelligence, though Wall Street remains concerned about the eventual payoff. In other tech news, Apple for in-car software, and Ubisoft reported a 9.2% slip in first-quarter net bookings but flagged early success for its Assassin’s Creed remake.

Regulatory and Competition Landscape Shifts

The European Union in a test of its commitment to defend the rule of law against Big Tech. Meanwhile, the US Justice Department plans to, focusing on top competition concerns rather than expansive probes. The Trump administration after a year-long push for records about antisemitism complaints. In a separate development, with his administration's 10% global tariffs set to expire. The US also on a wide range of goods, accusing its neighbor of unfair practices and potentially reigniting a trade war.

Corporate Earnings and Sector Performance

Harley-Davidson raised its forecast for motorcycle sales, driven by strong North American performance, though it remains pressured by European sales and tariffs. Nestlé has been making headway in ditching sleepy brands for more lively ones, signaling an internal turnaround. US wheat farmers are to a three-year high, threatening yields. Gold settled 2.42% lower at $4046.60, with silver also falling. In the materials sector, Dow Inc. swung to a profit of $802 million on higher prices, while Cleveland-Cliffs reported higher revenue due to continued steel demand. Union Pacific logged higher profit and revenue on volume growth, and Norfolk Southern also posted higher revenue as demand trends improved. American Airlines, however due to rising jet fuel prices, and Southwest Airlines also. Tractor Supply cut its outlook following a tough quarter, and Albertsons is as consumers tighten grocery budgets.

Financial Markets and Investment Trends

Hedge funds are, with global assets under management increasing by over $400 billion, fueled by an equity rally and institutional investor inflows. BlackRock Inc. is making the case for European corporate bonds, despite their spreads being near record tightness. The company's Global Infrastructure Partners LP is also in discussions to sell bonds backed by stakes in private capital funds. Kalshi Inc. is planning to launch perpetual copper futures, offering investors a new way to bet on the metal as AI demand grows. The European Central Bank at 2.25%, pausing despite a renewed surge in oil prices. The euro extended its losses after the ECB kept rates steady, with no hints of further rate hikes. In Argentina, dollar bonds, marking its third sovereign upgrade in less than three months.

International Trade and Geopolitical Dealings

The US-Saudi nuclear deal remains in doubt as Trump links it to relations with Israel. Saudi Crown Prince Mohammed bin Salman has insisted any rapprochement with Israel depends on steps towards a Palestinian state. Israeli officials welcomed the possibility of normalized ties, though analysts view the US-Saudi nuclear deal as detrimental to Israel. South Korea, as President Trump allows Saudi Arabia to enrich uranium domestically, a demand South Korea has made for years. Meanwhile, the Palestinian economy is on a cliff edge as Israeli banks cut ties, a move that follows years of Israeli government efforts to undermine the Palestinian Authority.

Defense and Energy Sectors See Increased Activity

US weapons makers' sales are soaring as the Iran war boosts order backlogs, with the Pentagon pushing for increased production rates. Germany plans to as part of a broader effort to boost funding for emerging companies. The North Sea oil and gas industry is, hoping to influence decisions on new drilling licenses. Westinghouse, which filed for bankruptcy in 2017, stands to benefit from growing support for nuclear power and the US-Saudi nuclear deal.

Other Notable Developments

The US has seen, signaling a stable labor market with muted layoffs. In a significant environmental health update, the FDA announced. Lindt & Spruengli AG faces a US lawsuit, with an activist law firm claiming the Swiss chocolate maker falsely promotes its anti-child labor efforts.