Stocks Fall as Chip Stocks Selloff Overshadows Cooling Inflation Data:
Stocks fell last week as a selloff in chip stocks overshadowed encouraging inflation data.
The S&P 500 Index fell 1.55%, while the Nasdaq Composite Index declined 2.90%. The Dow Jones Industrial Average slipped 0.93%. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 0.80%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 07/10/26 = 0)
Chip Stocks Under Pressure
Renewed tensions in the Middle East gripped investors as the week kicked off. Stocks slid broadly as oil prices climbed.3
On Tuesday, investors cheered news of the first drop in consumer inflation in six years. The following day, an unexpected drop in wholesale inflation prompted investors to rethink the Fed’s next move on short-term interest rates.4,5
But on Thursday, the S&P 500 opened lower as chip stocks dragged the broader market lower once again.6
As the week wrapped up, the S&P lost over 1% on Friday, while the Nasdaq fell 1.4% as investors appeared to rotate out of chip stocks and other tech names in favor of other sectors.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Inflation Declines
The Consumer Price Index (CPI) surprised Wall Street last week, falling 0.4% in June from the prior month. While month-over-month inflation has decelerated at times over the past six years, this was the first monthly decline in consumer prices since April 2020.8
Wednesday’s Producer Price Index report showed that monthly wholesale inflation unexpectedly declined 0.3% in June. Later in the day, New York Fed President John Williams said that he believed inflation had likely peaked.9
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 17, 2026
2Investing.com, July 17, 2026
3CNBC.com, July 13, 2026
4WSJ.com, July 14, 2026
5CNBC.com, July 15, 2026
6CNBC.com, July 16, 2026
7CNBC.com, July 17, 2026
8CNBC.com, July 14, 2026
9CNBC.com, July 15, 2026
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