July 18, 2026 Market Update

Market Recap: Tech Takes a Breather

Semiconductor and other artificial intelligence-related stocks pulled back this week despite several companies reporting strong earnings, as investor concerns about elevated valuations and the enormous spending requirements for the ongoing AI buildout intensified. The Nasdaq bore the brunt of the retreat, as softer inflation data and solid bank earnings offered support to other segments of the market.

Bond markets were steadier. Consumer and producer prices both declined in June, easing concerns that the Federal Reserve may soon need to raise interest rates. Treasury yields moved modestly lower but remained elevated as resilient consumer spending and renewed tensions in the Middle East complicated the inflation outlook.

Investors will likely focus their attention on corporate earnings next week. Results from Alphabet and Tesla should provide an important test of enthusiasm surrounding artificial intelligence, technology spending, and other ambitious growth initiatives. With expectations still high and technology shares showing signs of fatigue, it may take more than strong results for Mr. Market to regain his momentum.

Market Performance

Market Commentary: What Goes Up…

Only a few weeks ago, SpaceX’s public offering was greeted with massive media coverage and a rush of investor enthusiasm. Since then, the stock has fallen sharply from its post-offering high and recently traded below its $135 initial offering price. The decline has erased roughly $1 trillion from the company’s peak market value.

Despite the turbulence in its stock, SpaceX has not scaled back its vision of the future.

• The 13th test flight of its Starship vehicle, which promises to greatly increase SpaceX’s capacity to put things into orbit while slashing the cost to do so.

• The company has also expanded aggressively into artificial intelligence and plans eventually to deploy orbital data centers that could take advantage of solar power while reducing dependence on earthly infrastructure.

Are investors still confident that SpaceX will ultimately reward their faith in its ambitious plans? The company’s upcoming first quarterly report will provide an early test. Soon-to-expire restrictions preventing some early investors and employees from selling their shares could create additional pressure on the stock price.

No one knows whether SpaceX will ultimately achieve its bold goals. But even if it does, its stock price could struggle in the interim, given Mr. Market’s apparent expectation of a flawless journey.

In Case You Missed It: Minting Millionaires.

Strong financial markets helped create more than 1,200 new millionaires every day in the U.S. last year, according to UBS’s latest Global Wealth Report. But the gains were far from evenly shared. After accounting for inflation, median wealth (where half of American adults had more wealth and half had less) fell by almost 20% over the same period.