Market Recap - Week of July 20 - 24, 2026

Gordon Achtermann
1 hour ago
4 min read

The S&P 500 index shed 0.6% this week amid mixed corporate earnings and continued worries about the US-Iran war.

The S&P 500 ended the week at 7,411.98, posting a second consecutive weekly decline. The index is down 1.2% for the month but up 8.3% for the year.

Pakistan is exploring a path toward a resumption of stalled talks between the US and Iran over ending the war, following a push initiated by China, Reuters reported, citing sources, on Friday. Axios a day earlier said in a report that US President Donald Trump was seriously considering a "massive attack" on Iran but didn't give a deadline for his decision.

Earnings were mixed as Intel (INTC) reported a Q2 beat for adjusted earnings and its strongest revenue growth in 15 years, driven by a 59% surge in the data center and artificial intelligence unit. American Express (AXP) and Verizon Communications (VZ), however, both disappointed with weaker-than-expected Q2 revenue.

The S&P 500's weekly loss came on declines in just three of its 11 sectors.

Communication services had the largest percentage drop, falling 6.2%, followed by a 6.1% decline in consumer discretionary.

Google parent Alphabet (GOOG, GOOGL) weighed down communication services, falling 7.8%. The European Commission fined the company's Google 890 million euros ($1.04 billion) for violating the Digital Markets Act by self-preferencing in Google Search and anti-steering practices on Google Play.

Tesla (TSLA) tumbled 17%, marking the largest weekly percentage loss in both the consumer discretionary sector and the overall S&P 500. The electric vehicle manufacturer reported a steeper-than-expected drop in Q2 adjusted earnings per share.

Last Week's Economic Reports

June new home sales jumped to 381,125, a 5.9% increase from a year ago. And a big reversal of last month's plunge.
July US Flash Manufacturing PMI, a gauge of the manufacturing sector's health, rose to 53.6.
Michigan Consumer Sentiment Index rose to 54.4.

Up Next

Economic data will include reports on

June wholesale and retail inventories,
June consumer spending, and
June Personal Consumption Expenditures price index.

The US Federal Open Market Committee will gather for a two-day meeting that concludes on Wednesday when members will announce a decision on interest rates.

S&P 500 Stylebox and Sector Returns

Once again, I'll note that so far this year, value has outperformed growth across the board, and it's not even close for large or midsize companies.

How to read the stylebox: The horizontal axis represents investment style, which can be value, blend, or growth for stocks and mutual funds. The vertical axis represents stock market capitalization, categorized by company size as large, medium, and small. The number in each box represents the percentage growth of the category at the intersection of the column and row. For example, large-cap value is in the top-left corner box of the 9 boxes, so the large-cap value category is up (or down) by the percentage shown in that box. The stylebox is NOT the S&P 500; it's the whole US stock market.

Thought of the Week

The average U.S. headline tariff rate has moderated meaningfully from its April 2025 peak, as the authorities under which the administration has attempted to impose tariffs have continued to evolve. After briefly reaching 18%, the average headline tariff rate has fallen to roughly 10%, although it remains well above pre-2025 levels. Much of the decline reflects the Supreme Court’s ruling against the administration’s use of tariffs under the International Emergency Economic Powers Act (IEEPA), which led to the removal of many emergency tariffs. Looking ahead, however, new sector-specific tariffs under Section 232 are expected to offset part of this decline, leaving the average tariff rate elevated relative to history.

While the headline tariff rate captures announced policy, the realized burden on businesses has also eased. The effective tariff rate - which reflects actual duties paid as a share of goods imported - fell from a peak of approximately 12% last year to around 7% in May, as the IEEPA tariffs were replaced by temporary tariffs at a lower rate under a different authority. At the same time, tariff refunds surged following the Supreme Court’s decision. The Treasury paid $ 49.2 billion in tariff refunds in June, roughly double new tariff collections for the month.

Preliminary analyses suggest that much of the tariff burden was absorbed by the companies themselves, rather than being passed on to consumers. Whether companies continue to absorb tariff costs will be important for corporate profits and inflation going forward. However, with a lower headline rate, neither threat is as significant as it was a year ago.

Source: JP Morgan (edited)

Thank you to all who attended this month's market Update webinar!

You can watch the replay here:

Alan Greenspan Dies & Fox Buys Roku – Monthly Market Update Webinar – July 2026

The episode is also available wherever you listen to podcasts!