The Markets (as of market close July 24, 2026)
Stocks ended last week modestly lower despite a strong rally on Friday, as investors continued to navigate heightened geopolitical uncertainty, rising Treasury yields, and volatility in energy markets. Ongoing tensions in the Middle East sent crude oil prices on a roller coaster ride, climbing above $100 per barrel before retreating to around $90 by week’s end. At the same time, the benchmark 10-year Treasury yield rose to its highest level since January 2025 before easing slightly, reflecting continued concerns that interest rates may remain elevated for longer.
The NASDAQ posted the steepest weekly decline as technology shares pulled back, while the S&P 500, Dow Jones Industrial Average, and Russell 2000 also finished lower. The Global Dow was the lone major benchmark to post a weekly gain. Sector performance favored energy, industrials, information technology, utilities, health care, and materials, while consumer discretionary, consumer staples, and communication services lagged.
Last Week’s Economic News
- New home sales showed modest improvement. Sales of new single-family homes rose 1.6% in June compared with May but remained 5.6% below their level from one year ago. Housing inventory represented a 9.3-month supply, while both median and average home prices declined from May and were lower than June 2025 levels, reflecting continued affordability pressures.
- The labor market remained resilient. Initial unemployment claims fell to 187,000, the lowest weekly total in several months, indicating employers continue to retain workers despite slower economic growth. Continuing unemployment claims also edged lower, reinforcing the overall strength of the labor market.
- Gasoline prices increased. The national average price for regular gasoline climbed to $4.00 per gallon, up nearly 15 cents from the previous week as geopolitical tensions pushed crude oil prices higher. Every major region of the country experienced an increase in pump prices.
Eye on the Week Ahead
Traders face a busy week of potentially market-moving events. The Federal Reserve concludes its latest policy meeting on Wednesday, with expectations that policymakers will leave the federal funds target range unchanged. Markets will also receive the advance estimate of second-quarter gross domestic product (GDP), June inflation data, and several additional reports that will help shape expectations for the economy and the path of monetary policy during the second half of the year.
Have a nice week!
Sincerely,
Robert G. Carpenter