July 11, 2026 Market Update

Market Recap

U.S. stocks finished the week mixed as investors balanced encouraging corporate news against renewed geopolitical tensions and uncertainty surrounding the outlook for interest rates. Technology shares once again provided much of the market's leadership, while easing oil prices later in the week helped improve investor sentiment after an early bout of volatility.

Bond markets experienced a more eventful week. Treasury yields initially moved higher before easing as investors reassessed the outlook for inflation and interest rates. The week's trading served as another reminder that while stock investors have remained optimistic, bond investors continue to demand convincing evidence that inflation is moving sustainably lower.

Looking ahead, investors will turn their attention to the start of second-quarter earnings season and next week's inflation data. Together, they will likely determine whether Mr. Market continues to hold his course.

Market Performance

Market Commentary: Keep Calm, Stay Alert.

The U.S. and Iran exchanged military strikes last week, prompting President Trump to declare that the ceasefire was over and efforts to negotiate a settlement were "a waste of time." Not surprisingly, oil prices rebounded in response, renewing concerns that higher energy costs could complicate the Federal Reserve's effort to bring inflation under control without resorting to raising interest rates further.

The Federal Reserve's Open Market Committee left its benchmark federal funds rate unchanged at 3.5% to 3.75% at its June meeting, but minutes released Wednesday revealed a more hawkish outlook than many investors had expected. The minutes also suggested growing differences among policymakers, adding another layer of uncertainty about where interest rates are heading.

Despite these developments, Mr. Market remained surprisingly composed. Major U.S. stock indexes continued to trade within their recent ranges, suggesting investors have become increasingly accustomed to geopolitical shocks. Generally speaking, it's smart for investors to stay calm and carry on during periods of uncertainty, so long as it doesn't lead to complacency or a false sense of security.

In Case You Missed It: Tapping the U.S. Market South Korean chipmaker SK Hynix raised $26.5 billion yesterday in a blockbuster Nasdaq debut to fund specialized artificial intelligence infrastructure. The transaction marks the largest U.S. listing by a foreign entity in over a decade, eclipsing Alibaba's historic 2014 debut. Remarkably, the capital raised from this single offering exceeds the total amount generated by all other US domestic tech IPOs combined over the past two years.