Stocks ended mixed as earnings reports showed a rotation in market sentiment, with technology stocks lagging. The bond market saw yields drop slightly ahead of key Fed decisions, while currency market
Stocks finished the week on a mixed note following another busy round of earnings releases and profit-taking among tech giants. Small-cap stocks also underperformed, as reflected by the Russell 2000's decline of -0.35%. While Friday saw all three major indices move lower (-0.38% for the Dow, -0.61% for the S&P 500, and a more pronounced -2.13% fall for the Nasdaq), the broader week was marked by a rotation in market sentiment.
Next week promises to be equally busy with earnings from major companies like Microsoft, Meta, Apple, Amazon, Visa, Boeing, Coca-Cola, ARM, Qualcomm, Lam Research, Exxon Mobil, and Chevron set to report. These results could determine whether this week's rotation broadens into a larger correction or if buyers regain control and push indices back toward record highs.
The bond market saw Treasury yields move lower across the curve as investors digested economic data ahead of key earnings reports and Federal Reserve decisions on Wednesday. The Fed is expected to keep rates unchanged, but there remains an 38% chance for a hike of 25 basis points. This week's rotation in technology shares was mirrored by support for rate-sensitive sectors despite weaker performance from tech stocks.
In the currency market, the U.S. dollar experienced mixed reactions. The Australian and New Zealand dollars gained (+0.17%, +0.24%) following stronger Flash PMI data, while the Swiss franc fell (-0.20%). The EUR/USD slipped marginally (-0.08%), USDJPY remained unchanged after reaching 40-year highs this week, and GBP rose modestly (+0.05% vs USD).
Canada's producer and raw material prices both declined sharply in June due to easing energy pressures following a tentative U.S.-Iran agreement that eased concerns over oil supply disruptions through the Strait of Hormuz. Lower crude oil prices filtered down to refined petroleum products, while precious metals weakened. The key challenge is whether higher energy costs persist, as they could reverse some progress and eventually feed into producer and consumer prices.
The July Flash S&P Global PMI report painted a mixed but generally positive picture for the U.S. economy. Manufacturing activity declined slightly from 53.9 to 53.8, missing forecasts while services saw strong growth at 53.6, its highest since November 2025. This suggests an improving economy in Q3 with challenges like supply chain disruptions and rising price pressures still looming.
U.S. new home sales unexpectedly strengthened in June, rising to an annualized pace of 628,000 from the revised May figure. Despite this improvement, inventory remained elevated at a 9.3-month supply, while median prices fell significantly, pointing to increasing pricing pressure on builders.
Source: InvestingLive. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.