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Last updated: July 20, 2026, 8:30 PM ET

Middle East Tensions Drive Oil Prices, Impact Inflation

Crude futures settled higher amid escalating U.S.-Iran hostilities, with oil edging lower earlier in Asian trade as traders eyed potential ceasefire hopes. Despite this, oil held its gains near two-week highs as U.S.-Iran tensions continued to rattle markets, with Yemen's Houthi militants threatening maritime traffic in the Red Sea. Gold remained steady as investors monitored the Middle East conflict for signs of its impact on energy prices and inflation, while silver despite a monthly decline. The WSJ Dollar Index rose 0.08% to 97.17, marking its third consecutive day of gains.

Canadian Dollar Weakens on New U.S. Tariffs, Fed Policy Uncertainty

The Canadian dollar weakened following President Trump's announcement of a proposed 50% tariff on a wide array of Canadian goods. This move reignites trade friction between the United States and its neighbor, utilizing an "untested legal provision" to impose significant duties. Meanwhile, money-market funds are shifting towards ultra-short-term holdings amid growing uncertainty over the Federal Reserve's policy path and its near-term outlook. Treasury yields rose to start a quiet week for economic data and Federal Reserve speakers, with policymakers entering a blackout period.

Corporate Earnings and Dealmaking Show Mixed Performance

Steel Dynamics posted a profit of $534.1 million, with expectations for strong domestic steel and aluminum consumption through the remainder of 2026. Cracker Barrel raised its guidance after divesting its Maple Street Biscuit brand and completing a sale-leaseback deal, anticipating it will meet or exceed its full-year revenue outlook. Crown Holdings, a maker of aluminum cans, reported driven by a 5% increase in global beverage can volumes. In a significant deal, Icahn Enterprises agreed to sell its auto-service chain Pep Boys to Mavis for $700 million.

Global Markets Navigate Inflationary Pressures and Sector Volatility

New Zealand's annual inflation accelerated to its fastest pace in over two years, fueled by surging fuel prices, strengthening the case for further interest-rate hikes by the Reserve Bank. Chip stocks regained ground, helping to boost the Nasdaq, as investors appeared to be moving past recent anxieties surrounding AI valuations. Analysts maintain bullish stances on Kioxia Holdings Inc. despite a correction in its share price, anticipating a resumption of its upward trend once supply-demand conditions improve. The bankrupt $1.2 billion Oceanwide Plaza project in Los Angeles, known as the "Graffiti Towers," has been cleared for sale and potential completion.

Geopolitical Events and Policy Shifts Shape Market Sentiment

U.S. stocks edged lower in cautious trading, with chip shares rebounding from recent losses and investors seemingly overlooking new Chinese AI models. The White House stated that the new Air Force One will be for approximately one month for "upgrades," a move that will put the aircraft out of commission this fall. In the U.K., Andy Burnham, with John Healey appointed as the top finance official to oversee fiscal and economic policy. Gilts faced pressure as investors braced for potentially higher spending under the new Prime Minister, who indicated a willingness to utilize fiscal flexibility.

Regulatory and Legal Developments Impact Various Sectors

A U.S. judge paused Paramount's $110 billion Warner Bros acquisition, granting a temporary halt to examine the competitive impact on Hollywood. Prosecutors and securities regulators are probing insurers owned by billionaire Mark Walter over asset disclosures, investigating potential failures to disclose holdings in affiliated entities. Washington, D.C. is preparing to this week in its annual municipal debt sale, tapping the market as its credit stabilizes. A U.S. judge tossed a Justice Department challenge to Minnesota immigration laws, ruling against the administration's argument that state policies limiting cooperation with ICE were unconstitutional.