Weekly Market Recap & Week AheadJuly 13-17, 2026Index Performance
Markets snapped a two-week winning streak, with all three major indexes posting their first losing week in three as a sell-off in semiconductor and AI-related names outweighed a strong start to bank earnings season. The S&P 500 fell 1.0% on Friday alone to close at 7,457.69, the Nasdaq Composite dropped 1.4% to close at 25,520.24, and the Dow Jones Industrial Average declined 0.8% (406.55 points) to close at 52,146.42. For the week overall, the S&P 500 lost roughly 1.6%, the Nasdaq slid about 2.9%, and the Dow eased about 0.9%, with chip-related weakness the primary driver behind the broader pullback. The pullback in semiconductors was notable in its own right: the Philadelphia Semiconductor Index (SOX) entered bear market territory on Friday after a sharp decline from its recent highs, though the sector pared some losses late in the session as investors bought the dip. Index Friday Close Week Change S&P 500 7,457.69 -1.6% Nasdaq Composite 25,520.24 -2.9% Dow Jones Industrial Avg. 52,146.42 -0.9% Sector Themes Bank earnings kicked off with a bang: JPMorgan Chase, Goldman Sachs, Bank of America, Wells Fargo, and Citigroup all reported second-quarter results Tuesday morning, and the numbers broadly exceeded expectations. JPMorgan posted earnings of $6.14 per share against a consensus estimate of $5.85, on revenue of $58.02 billion versus the $50.19 billion expected, with profits up 41% year-over-year. Goldman Sachs delivered the best quarterly performance in the firm's history, with earnings of $20.98 per share and net revenue of $20.34 billion, a 39% year-over-year increase. Wells Fargo also beat estimates meaningfully. Semiconductors weighed heavily on sentiment: A global sell-off in chip and AI infrastructure names deepened through the week, with Taiwan Semiconductor's increased capital spending forecast overshadowing an otherwise better-than-expected quarterly report. The technology-heavy Nasdaq bore the brunt of this rotation. Other notable movers: IBM shares fell sharply after warning that second-quarter profits would come in below expectations due to softer software and infrastructure demand. Netflix shares declined after its third-quarter forecast fell short of expectations, despite a solid quarterly print. Geopolitical and energy backdrop: Tensions between the United States and Iran escalated early in the week following renewed strikes near the Strait of Hormuz, pushing oil prices sharply higher before easing somewhat as the week progressed.
Fed Commentary
June's Consumer Price Index, published Tuesday, cooled meaningfully more than expected, falling 0.4% on the month and bringing the annual rate down to 3.5%, below the 3.8% consensus estimate and the largest single-month decline since April 2020. Core inflation was flat for the month, now at 2.6% annually. Fed Chair Kevin Warsh, delivering his first semi-annual testimony to Congress the same day, struck a measured tone despite the encouraging print, cautioning that a single month of cooler data should not be read as "mission accomplished" on inflation. Week Ahead: July 20–24, 2026 Big Tech earnings take center stage this week, alongside a heavy slate of industrial, healthcare, and consumer-facing companies, along with the first look at July economic activity. Wednesday, 7/22: Both Tesla and Alphabet report second-quarter results after market close. Tesla is expected to post revenue of roughly $26.4 billion, up 17.3% year-over-year, with attention on robotaxi fleet expansion. Alphabet is expected to show continued double-digit revenue and earnings growth, with focus on Google Cloud momentum and AI infrastructure spending. Thursday, 7/23: Intel reports after a difficult month for the stock amid the broader semiconductor sell-off, alongside Union Pacific, Honeywell, Lockheed Martin, T-Mobile, Comcast, and Blackstone. Weekly initial jobless claims are also released. Friday, 7/24: Preliminary July S&P Global Manufacturing and Services PMI readings offer the first look at Q3 U.S. economic activity, alongside June New Home Sales data. Earnings continue with NextEra Energy, Verizon Communications, American Express, HCA Healthcare, and Charter Communications. Also on the radar: The European Central Bank holds its policy meeting and is broadly expected to leave rates unchanged, with markets focused on President Lagarde's commentary.
What we're watching: whether Alphabet's cloud and AI capital spending commentary can help stabilize technology sentiment following last week's semiconductor-led sell-off; how Tesla's operational updates land after a bruising week for growth names; and whether Friday's flash PMI readings support or complicate the "soft landing" narrative. Weekly Market Recap Link Work With Me Important Disclosures
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