Earnings Season Kicks Off; Markets Take a Breather:
Stocks closed lower last week as Q2 corporate results, Middle East developments, and the chips trade sent investors on a bumpy ride.
The Nasdaq Composite Index was under the most pressure, falling 2.13%. The S&P 500 Index lost 0.6%, while the Dow Jones Industrial Average slipped 0.38%. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.35%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 07/17/26 = 0)
A Volatile Week
After a sluggish start on Monday, stocks rebounded on Tuesday as the chips trade led the markets higher, as investors turned their attention to Q2 corporate earnings results.3
Then stocks stalled midweek as oil prices and bond yields rose and investors digested some initial Q2 reports. The S&P 500 ended just below the flatline, while the Dow went sideways and the Nasdaq posted a modest loss.4
Stocks opened lower Thursday as mixed corporate updates from two of the world’s largest companies soured investor sentiment. One company said it was raising its AI spending forecast for the year, which unsettled investors who believed other companies may have to do the same.5
Sentiment turned positive Friday morning as investors cheered quarterly results and guidance for one big tech company. But markets retreated in the afternoon as investors fretted over oil prices.6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
The Importance of Guidance
Last week was one of the busiest for the Q2 2026 corporate reporting season.5
Corporate earnings are a key driver of stock prices, so updated corporate guidance can increase market volatility. Last week, two influential companies said they intended to spend more money this year than expected, which caught investors off guard.5
As more Q2 corporate reports get released, expect investors to pay close attention to any spending updates for other companies.
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, July 24, 2026
2Investing.com, July 24, 2026
3CNBC.com, July 21, 2026
4CNBC.com, July 22, 2026
5CNBC.com, July 23, 2026
6WSJ.com, July 24, 2026
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