S&P 500 – 7,543.59 (+0.38%)

Dow Jones – 52,508.27 (+0.02%)

NASDAQ – 26,107.01 (+0.90%)

• Treasury Yields Slide as Cooling CPI Boosts Fed Flexibility: Treasury yields declined following the cooler-than-expected CPI report, with the 10-year U.S. Treasury yield hovering near 4.57% as investors weighed whether easing price pressures could provide the Federal Reserve with additional flexibility on future interest-rate decisions. Traders are now pricing in a 43% chance of a 25-basis-point rate hike, compared with 25% a week ago, according to CME Group’s FedWatch.
• Global Markets Mixed: Overseas markets delivered a mixed performance Tuesday, with Asian markets closing mostly higher while European markets were little changed. China reported $412 billion in exports during June, marking a new monthly record and highlighting continued strength in global trade.
• Oil Prices Climb as Strait Of Hormuz Tensions Raise Supply Risks: WTI crude oil moved toward $80 per barrel as renewed tensions surrounding the Strait of Hormuz fueled concerns about potential supply disruptions. Meanwhile, the U.S. dollar weakened against major global currencies as investors monitored shifting geopolitical risks.
• Inflation Cools Further, Boosting Market Confidence: June inflation data showed continued moderation, with headline CPI rising 3.5% year over year, beating expectations for a smaller decline to 3.9%. Core CPI, which excludes food and energy prices, cooled to 2.6% year over year versus forecasts calling for it to remain at 2.9%, adding to optimism that inflation is moving in the right direction.
• Lucid Shares Whipsaw After Bankruptcy Rumors Trigger Record Selloff: Lucid Group (LCID) shares endured a historic trading session Tuesday, plunging as much as 55% before recovering losses after the electric vehicle maker denied reports that it was exploring bankruptcy options. The stock was halted multiple times due to extreme volatility before closing down about 20%.
• Bank Earnings Kick Off Strong: Second-quarter earnings season started on a positive note, with major financial institutions including JPMorgan, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo reporting better-than-expected results.
• JPMorgan delivered the largest quarterly profit ever recorded by a U.S. bank, powered by strong market activity, AI-related investment, and disciplined capital management.
• Goldman Sachs Surges on Strong Earnings and IPO Momentum: Goldman Sachs (GS) climbed after reporting earnings that exceeded Wall Street expectations, fueled by strength in underwriting and investment banking. The company also benefited from strong IPO activity, including the SpaceX offering.
• Citigroup Posts Record Revenue Despite Stock Decline: Citigroup (C) shares slipped despite the company exceeding analyst estimates across most categories and reporting record quarterly revenue. Equity trading revenue jumped 45% year over year, although growth came in slightly below JPMorgan’s performance, while the credit card business slightly missed expectations.
• Bank Of America Beats Estimates on Trading Strength: Bank of America (BAC) shares moved lower despite a strong quarter, with earnings per share of $1.21 topping the $1.12 consensus estimate. Results were supported by a 70% year-over-year increase in equity trading revenue and a 9% rise in net interest income.
• Wells Fargo Delivers: Wells Fargo (WFC) eased despite reporting better-than-expected results, supported by strength in wealth management and investment banking. The bank maintained its full-year net interest income guidance.
• Chip Stocks Rebound: Chip stocks reversed Monday’s losses and helped drive the Nasdaq higher, with South Korean memory chipmaker SK Hynix leading the move. Investors continued favoring companies positioned to benefit from AI infrastructure spending.
• Software Stocks Slide: Software names reversed Monday’s gains, with Workday (WDAY), Salesforce (CRM), and Adobe (ADBE) among the stocks pressured as investors reassessed how AI spending is impacting traditional software companies.
• Meta Extends Technical Momentum Above Key Moving Average: Meta’s stock was on track to close above its 200-day moving average for three consecutive sessions, marking its longest stretch above the key technical level since February, according to Yahoo Finance AlphaSpace data.
• Samsung Reportedly Explores U.S. Stock Listing: Bloomberg reported that South Korean technology giant Samsung is exploring a potential U.S. stock listing, adding to the growing pipeline of global companies seeking access to American capital markets.
• SpaceX Shares Stabilize After Early Weakness: SpaceX shares edged higher after falling below their $150 opening trade price earlier in the week. Investor concerns have included potential competition from China in the global launch market, according to reports.

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“A bank is a place that will lend you money if you can prove that you don’t need it.” — Bob Hope

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Notable Stocks

• Nvidia (NVDA)
• Bank of America (BAC)
• JPMorgan (JPM)
• Wells Fargo (WFC)
• Meta Platforms (META)

Weekly Notables

DeepSeek Targets $71 Billion Valuation Ahead of Potential IPO

Chinese AI startup DeepSeek is reportedly preparing for a major funding round that could value the company at approximately $71 billion, as the artificial intelligence challenger moves closer to a potential IPO.

According to Bloomberg, DeepSeek is in talks to raise around $1.5 billion and could go public as early as late 2026, although a 2027 IPO remains the current target. The discussions follow the company’s first outside funding round last month, which raised $7 billion at a $50 billion valuation.

IBM Stock Sees its Worst Day in 50+ Years

IBM shares suffered their steepest decline in decades Tuesday, plunging more than 25% after the company warned that quarterly results would fall short of Wall Street expectations. The technology giant blamed the weakness on customers shifting spending away from software and mainframe products toward AI servers, storage, and memory infrastructure. IBM reported adjusted earnings per share of $2.93 on revenue of $17.2 billion, missing analyst expectations of $3.02 EPS and $17.86 billion in revenue.

Earnings Spotlight: Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ) is scheduled to report its Q2 2026 financial results before the market opens on July 15, 2026. Wall Street analysts project revenues of $25.18 billion and an Earnings Per Share (EPS) of $2.85. In the previous quarter, JNJ posted revenues of $24.06 billion and an EPS of $2.70. 

What to Watch Ahead

For more clues about economic growth, investors will be checking June retail sales this Thursday.

July 15: June PPI and core PPI, Fed Beige Book, and expected earnings from ASML (ASML), Johnson & Johnson (JNJ), Morgan Stanley (MS), BlackRock (BLK), Progressive (PGR), Bank of New York Mellon (BNY), PNC Financial Services (PNC), Kinder Morgan (KMI), United Airlines (UAL), and J.B. Hunt Transport (JBHT).

July 16: Expected earnings from Taiwan Semiconductor Manufacturing (TSM), GE Aerospace (GE), UnitedHealth Group (UNH), Abbott Laboratories (ABT), US Bancorp (USB), Netflix (NFLX), and Intuitive Surgical (ISRG).

July 17: June housing starts, June building permits, June industrial production, July preliminary University of Michigan consumer sentiment, and expected earnings from Travelers (TRV), Truist Financial (TFC), and Fifth Third Bancorp (FITB).

July 20: No major earnings or data expected.

July 21: Expected earnings from Novartis AG (NVS), Danaher (DHR), Marsh & McLennan (MRSH), 3M (MMM), Northrop Grumman (NOC), General Motors (GM), MSCI (MSCI), D.R. Horton (DHI), Halliburton (HAL), Chubb (CB), and Capital One (COF).