Traders trade on the floor of the New York Stock Exchange during morning trading hours on July 24, 2026, in New York City.
S&P 500 ended almost flat for the day, dragged lower by chip stocks, amid concerns about the ongoing situation in the Middle East region.
The broad market index climbed only 0.05% to close at 7,411.98, and the Nasdaq Composite index fell 0.64% to close at 24,975.82, whereas the Dow Jones Industrial Average increased 235.60 points or 0.46% to end at 51,947.25. Apple was up 3.5%.
The stocks were trading higher in early trade as oil prices fell following a report from Reuters, quoting three sources in Pakistan, who say that Pakistan may take a step towards peace talks between Iran and the United States with China taking the lead in the process, however, there are many hurdles before any talks with the U.S. take place.
Last week, United States President, Donald Trump stated that a “massive attack” against Iran is going to take place in the very near future following the fact that the war in the Middle East has shifted to another front in the Red Sea. According to the president, the attack would be one that is more intense than any other carried out during the war, stating that “Iran has not received enough pain yet.”
“I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it,” he said in his interview.
The New York Times said on Friday that Trump is consulting with top aides and senior members of his cabinet on how to proceed with the U.S.′ offensive against Iran.
Oil prices recovered from their lows following the news. Brent crude futures,
which climbed above the $100 mark for the first time since late May in the previous session, retreated from those levels to end at $96.78, down almost 4%. West Texas Intermediate futures,
declined by 3% to close at $89.31 a barrel.
Traders appeared reluctant to hold for a potentially hostile weekend for Iran.
In the last two weeks, U.S. troops have been hitting targets in Iran, and Central Command is marking the 13th straight night of bombing.
“The situation in the Middle East has the possibility of producing something economically tangible in terms of the restriction of hydrocarbon flow and the capacity of the world economy to absorb that,” according to Bill Northey, investment director for the U.S. Bank Asset Management Group.
Even though the director of Northey thinks that rates would not change during the coming week considering the rise in oil prices during this week, the investment director says, “Federal Reserve Chairman Kevin Warsh has been very explicit about the return of inflation level in the U.S. economy to their target and we take him at his word.”
Intel shares dropped by almost 8%, as opposed to its previous rise, following positive earnings in the company’s second quarter. Other semiconductor companies followed suit, where Broadcom
declined by 2.7%, while Advanced Micro Devices
fell by 3.3%. Micron Technology
fell by 7%, and the VanEck Semiconductor ETF (SMH)
also dropped 3%.
“It is probably just the case that you are seeing a lot of large flows come and go in and out of the sector on a daily basis, but as you zoom back and take a broader view of the strong earnings growth that’s occurring, where that lies, and the reasons for the ‘26 and ‘27 forecasts, they are the biggest winners,” Northey commented.
“And all that really needs to be recognized is that there will be some sentiment-driven flows within and surrounding the sector.”
Both the S&P 500 and Nasdaq had consecutive weekly losses, registering drops of 0.6% and 2.1%, respectively. The Dow had a weekly loss of 0.4%, its third consecutive weekly loss.
Dow & S&P 500 Close Up
Dow Jones Industrials and S&P 500 closed higher on Friday.
The blue-chip benchmark gained 235.60 points or 0.46% to close at 51,947.25, whereas the broad-market index gained 0.05% to close at 7,411.98.
On the other hand, the tech-heavy Nasdaq Composite fell 0
Geopolitical considerations will continue to affect the Fed until energy supplies from the Middle East are more predictable, investor believes With the Federal Reserve preparing for its policymaking
With the Fed’s policy meeting approaching, Thomas Urano of Sage Advisory pointed out that it is not only the need to forecast the future inflation trends but the duration of the disruptions in the energy sector that the central bank needs to assess.
“The policymakers can’t do much to fight supply-induced inflation, while the uncertainties in the Middle East reduce their confidence in any forecasted trajectory of the rates,” the co-CIO added. “Until there is some predictability in the energy flows of the region, the political news will keep influencing the inflation expectations, the yields on bonds, and the Fed’s policy.”
Earnings Growth for S&P 500 on Track for Best Quarter Since 2021
Earnings season in the second quarter is off to a surprisingly good start, as the U.S. corporations report strong earnings and beat the Street expectations.
With 27% of S&P 500 firms releasing their earnings reports, 86% of them are beating EPS estimates while 80% of the rest beat their revenue projections, FactSet notes. The earnings per share growth rate in the second quarter currently sits at 37.9%, compared to 23.2% growth expected back at the end of June. It would be the fastest rate of earnings growth since Q3 2021 if maintained at the same level, FactSet says.
This is thanks to an improvement driven by better-than-expected profits and estimates being revised higher, as nine of the eleven sectors in the index saw an increase in their profit estimates from June 30. Companies have kept a reasonably balanced approach to the current quarter, with 11 companies in the S&P 500 giving positive earnings guidance for the third quarter while nine gave negative guidance.
