S&P 500 – 7,728.20 (-0.32%)

Dow Jones – 53,791.85 (-0.34%)

NASDAQ – 26,445.45 (-0.60%)

• Markets Slip as Iran Tensions and Inflation Take Center Stage: U.S. equity markets traded lower on Tuesday as investors weighed ongoing uncertainty surrounding Iran while looking ahead to today’s highly anticipated Consumer Price Index (CPI) report. Treasury yields moved lower, with the 10-year U.S. Treasury yield hovering around 4.68%.
• Overseas Markets Mixed as Oil Climbs: Asian markets finished mixed overnight, while European markets traded higher. Oil prices moved higher even after Pakistan’s defense minister, Khawaja Asif, told reporters that the U.S. and Iran were “close to some sort of arrangement.” The U.S. dollar was little changed against a basket of major currencies.
• Labor Market Shows More Signs of Cooling: Recent employment data points to a gradual slowdown in hiring. According to ADP, U.S. private employers added an average of 8,250 jobs per week during the four weeks ending July 25, down from 11,000 in the previous report. The decline is consistent with other indicators pointing toward more moderate job growth.
• Rocket Lab Slides on Wider-Than-Expected Losses: Rocket Lab (RKLB) fell after reporting quarterly losses that were wider than Wall Street expected. The company did manage to beat revenue estimates, with sales jumping 62% year-over-year.
• AI Stocks Gain Ahead of Key Earnings: AI infrastructure stocks posted modest early gains, with ASML (ASML), Super Micro Computer (SMCI), and Applied Materials (AMAT) all moving higher. Super Micro Computer is scheduled to report earnings this afternoon, while Applied Materials reports Thursday.
• Hims & Hers Faces Earnings Pressure: Hims & Hers Health (HIMS) dropped after reporting significantly wider-than-expected quarterly losses. The company did offer a brighter outlook for third-quarter revenue, which is expected to come in well above Wall Street estimates. Revenue increased 38% year-over-year in the latest quarter.
• Intel Expands Massive Share Offering: Intel (INTC) slipped after increasing its previously announced share offering to $20 billion from $15 billion. According to Reuters, the proceeds will help fund the company’s chip contract manufacturing business.
• Coherent Plunges Ahead of Earnings: Coherent (COHR) tumbled ahead of its Wednesday afternoon earnings report, following a sharp decline in Lumentum. Investors may also have been taking profits ahead of the company’s results.
• Nvidia Keeps the AI Funding Story Hot: Chip and software stocks continued to move in opposite directions. Software names remained relatively stronger while chip stocks faced pressure. Meanwhile, a Financial Times report said Nvidia (NVDA) had reached an agreement with several major Wall Street firms to help raise $500 billion to finance the broader AI buildout.
• Supermicro Shares Go Higher on Forecast: Supermicro (SMCI) reported its fourth quarter results after the bell on Tuesday, topping expectations on earnings but falling short on revenue. Still, an upbeat Q1 forecast sent shares higher by more than 6%.
• S&P 500 Posts Its Quietest Trading Day of the Year: The S&P 500 (SPX) recorded its narrowest intraday trading range of the year Monday, reflecting the low-volatility, late-summer trading environment. Market volume also came in below average.
• On Holding Gets Hit by Weak Sales: On Holding (ONON), the company behind Swiss running shoe brands such as Cloudsurfer and Cloudrunner, plunged 19% after reporting second-quarter sales that came in below Wall Street expectations.

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“Feel the fear and do it anyway.” — Susan Jeffers

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Notable Stocks

• Intel Corp. (INTC)
• Nvidia (NVDA)
• Super Micro Computer (SMCI)
• Applied Materials (AMAT)
• Hims & Hers Health (HIMS)

Weekly Notables

Wendy’s Loses Ground in the Burger Wars

Wendy’s (WEN) has lost its position as America’s No. 2 burger chain after another disappointing quarter. Same-store sales fell 7%, while traffic dropped 12.5% during the second quarter. According to Restaurant Business, the decline marked the company’s sixth consecutive quarterly drop, highlighting the continued challenges facing the fast-food chain.

Target Names First Chief AI Officer as Retailers Race to Capitalize on AI

Target (TGT) is stepping up its AI strategy, appointing its first-ever chief artificial intelligence officer as major retailers increasingly turn to AI to improve operations and compete for shoppers. The company announced Tuesday that Chandhu Nair has been named chief AI officer and senior vice president. Target also appointed Purvi Shah as senior vice president of user experience.

Earnings Spotlight: Cisco Systems (CSCO)

Cisco Systems (CSCO) is scheduled to report its fiscal fourth-quarter 2026 financial results after the market closes on Wednesday, August 12, 2026. Analysts project an earnings per share (EPS) of $1.17 on revenue of roughly $16.82 billion. 

What to Watch Ahead:

Investors’ attention is now shifting squarely toward this week’s inflation data. July’s CPI report is due Wednesday, with economists expecting headline inflation to ease to 3.4% year-over-year, down from 3.5% in June. Core CPI, which excludes volatile food and energy prices, is expected to cool to 2.5% from 2.6%. 

Thursday’s Producer Price Index (PPI) report is also expected to show a more noticeable slowdown in wholesale inflation, although it is coming from a higher starting point. If both reports come in broadly in line with expectations, they could ease concerns that inflation is becoming entrenched and give the Federal Reserve greater flexibility when determining its next policy moves.

August 12: July Consumer Price Index (CPI) and core CPI, and expected earnings from Nebius Group (NBIS), Cisco (CSCO), and Cerebras Systems (CBRS).
August 13: July Producer Price Index (PPI) and core PPI and expected earnings from Brookfield (BN), NetEase (NTES), JD.com (JD), Tapestry (TPR), Applied Materials (AMAT), and Nu Holdings (NU).
August 14: University of Michigan preliminary August consumer sentiment.
August 17: No major earnings or data expected.
August 18: July housing starts and building permits, July industrial production, and expected earnings from Home Depot (HD), Baidu (BIDU), and Toll Brothers (TOL).