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Economic Trends and Market Highlights – July 27, 2026

WEEKLY MARKET RECAP:

INFLATION FEARS RETURN AS INVESTORS WATCH THE FED

Over the last week, inflation fears were back in focus as tariff risks, the Iran conflict, rising oil prices, and doubts about the Federal Reserve’s next move dominated headlines.

Strong early earnings helped, but concerns about heavy AI infrastructure spending hit mega-cap tech stocks and outweighed the good news for the broader market.

STOCK MARKET RECAP:

The S&P 500 slipped¹ 0.61%.
The NASDAQ 100 declined² 1.62%.
The Dow Jones Industrial Average edged down³ 0.38%.

INFLATION CONCERNS RETURN TO THE FOREFRONT
Inflation cooled, but the relief didn’t last. June’s Consumer Price Index⁴ (CPI) report, released earlier in the month, had shown headline inflation easing to 3.5% and core inflation (excluding food and energy) down to 2.6%, giving the Fed some breathing room. However, that faded during the week as fresh tariffs⁵ on 60 trading partners raised new concerns about pricing pressure. Investors shifted from confidence that inflation was improving to worry that progress could stall or reverse.

EARNINGS SEASON HIGHLIGHTS AND AI SPENDING CONCERNS
Earnings kept the market split. Strong results from several major companies gave the market a lift, but heavy AI infrastructure spending⁶ weighed on hyperscaler stocks that reported earnings. Both Alphabet and Tesla reported strong revenue growth, but investors focused on their AI spending instead. Free cash flow (operating cash flow minus capital expenditures) was the number investors zeroed in on, and it turned negative at both companies.

OIL PRICES RISE AMID MIDDLE EAST TENSIONS
Oil prices are spiking again. Middle East tensions pushed oil sharply higher during the week, with Brent crude briefly topping $100 a barrel. Rising energy prices tend to lift inflation expectations and transportation costs at the same time, complicating the Fed’s calculus ahead of its July meeting. Markets began pricing in a chance of a hike, even as most economists still expect the Fed to hold steady in July.

THE WEEK AHEAD: FED DECISION AND MEGA-CAP EARNINGS
The Fed’s rate decision⁷, which will be delivered on Wednesday (July 29), comes with limited drama since a hold is widely expected, but its tone matters more than the decision itself. Any hawkish shift, or any hint that easing remains on the table, will move bonds, the dollar, and rate-sensitive stocks. Alongside that, mega-cap tech earnings will test whether growth leadership can hold up under higher rates. Solid results paired with cautious guidance may still spook investors rather than reassure them.

Know that we are keeping a close eye on how things develop and we are here if you have questions or if you would generally like to talk through your portfolio. Don’t hesitate to reach out.

STAY AHEAD

We are here to help you navigate what’s ahead. If you have any questions or would like to discuss
how this week’s insights might apply to your situation, please don’t hesitate to reach out.
And if you know someone who would benefit from this newsletter, we’d be happy to connect with
them. With their permission, we’ll ensure they receive future editions.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax, financial or legal advice. Please consult legal, financial or tax professionals for additional and/or specific information regarding your individual situation. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Advisory services offered by World Investment Advisors, LLC. Securities offered by World Investments, LLC, member FINRA/SIPC. World Investment Advisors, LLC is affiliated through common ownership with World Investments, LLC. PensionmarkMeridien is unaffiliated with either World Investment Advisors, LLC or World Investments, LLC.

Sources:

Securities offered by World Investments, LLC (Member FINRA/SIPC)