Will the Rally return? 20/07/2026

 


HOT stories for today

Market wrap:

• US stocks ended last week lower as sustained weakness in semiconductor shares and cautious earnings reactions weighed on market sentiment. The S&P 500 fell 1.6% for the week, while the Nasdaq Composite dropped 2.9% and the Dow Jones Industrial Average declined 0.9%. The VanEck Semiconductor ETF (SMH) sank nearly 9%, marking its third weekly loss in four weeks. Friday extended the selloff, with the S&P 500 losing 1% to close at 7,457.69. The Nasdaq fell 1.4% to 25,520.24, while the Dow dropped about 407 points, or 0.8%, to finish at 52,146.42. 
• Netflix (NFLX) was another notable laggard, sliding more than 7% after its latest outlook failed to ease concerns that growth is slowing. Escalating tensions between the US and Iran also remained a key source of uncertainty. US stock futures were mixed early Monday as investors assessed the worsening conflict and another rise in energy prices. West Texas Intermediate crude climbed 3% to above $85 a barrel, while Brent advanced 3% to more than $91. Attention now turns to another busy earnings week. Alphabet (GOOGL) and Tesla (TSLA) are scheduled to report after Wednesday’s close, followed by Intel (INTC) on Thursday after the chipmaker fell 13% last week.

Fed Rate Hike Debate Intensifies

• Investors remain divided over whether the Federal Reserve will raise interest rates this month, as Chair Kevin Warsh continues to offer few clear signals about the central bank’s next move. Warsh used his congressional testimony to reaffirm the Fed’s commitment to restoring price stability, warning that policymakers have little tolerance for persistently elevated inflation. He stopped short, however, of explicitly backing a July rate increase. Several Fed officials have adopted a more hawkish stance. Dallas Fed President Lorie Logan said modestly higher rates may be needed, while other policymakers have pointed to resilient employment and lingering inflation pressures as reasons to consider further tightening. 
• Even so, cooler-than-expected inflation data has reduced expectations for an immediate move. Markets increasingly see July as too early for a hike, with September viewed as the more likely starting point if price pressures remain elevated. The Fed’s latest projections also showed a notable shift toward tighter policy, with several officials penciling in at least one rate increase this year. Still, a significant group believes the central bank can afford to remain patient as inflation gradually moderates. For now, the Fed is expected to remain highly data-dependent, with upcoming inflation, employment, and consumer spending reports likely to shape whether policymakers keep rates unchanged or resume tightening later in the year.

Stocks on the move:

• Alibaba (BABA): Shares rose 5.2% after the Chinese technology giant unveiled a preview of its flagship Qwen 3.8 Max artificial-intelligence model. Alibaba said the system features 2.4 trillion parameters and performs alongside leading frontier models. The preview is available through its Token Plan, Qoder and QoderWork platforms.
• Alphabet (GOOGL): Shares fell 1.5%, extending losses for a second session, after Bloomberg reported that Google is months behind schedule in delivering its latest Gemini AI model. The stock dropped nearly 4.5% in the previous session.
• Intuitive Surgical (ISRG): Shares sank more than 11% despite stronger-than-expected second-quarter earnings and revenue. The robotic-surgery company maintained its full-year forecast for roughly 14% growth in procedures using its da Vinci system, disappointing investors looking for an upgraded outlook.
• SpaceX (SPCX): Shares declined more than 3.5% after the company aborted the launch of its Starship rocket. Chief Executive Elon Musk said several engines failed to start, triggering an automatic shutdown, though another launch attempt is expected in the coming days.
• Verizon Communications (VZ): Shares gained 1% after the telecommunications company announced plans to sell 274 company-owned retail stores and eliminate about 500 corporate positions as part of its broader restructuring.

Watchlist: XOM, COIN, CVX, NFLX, IBM, MU, SNDK, DPZ, MSFT

Key Economic Events Today:

EST time

10:00 am: USD CB Leading Index


Earnings

BMO (Before Market Open): Ryanair Holding (RYAAY), Domino’s Pizza (DPZ)

AMC (After Market Close): Steel Dynamics (STLD), W.R: Berkley (WRB), AGNC Investment (AGNC), Crown Holdings (CCK)? Wintrust Financial (WTFC)


The TEFS Analyst team wishes you a successful day!