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Economic Trends and Market Highlights – July 20, 2026

WEEKLY MARKET RECAP:

INFLATION COOLS AS OIL PRICES AND AI STOCKS DRIVE VOLATILITY

Markets had plenty to digest last week. Headline inflation¹ cooled more than expected, with a monthly drop that was the largest since April 2020. But the calm didn’t last.

Renewed U.S.-Iran hostilities sent oil prices climbing and rattled AI-linked semiconductor stocks, even as Q2 earnings season opened strong. Investors spent the week weighing solid corporate profits against fresh geopolitical risk.

STOCK MARKET RECAP: MAJOR INDEXES MOVE LOWER

The S&P 500 declined²55%.
The NASDAQ 100 slumped³13%.
The Dow Jones Industrial Average edged down⁴93%,

INFLATION UPDATE: CPI COOLS BUT FED CAUTION REMAINS
Inflation cools, but the Federal Reserve stays cautious. June’s Consumer Price Index (CPI) data came at 3.5% year-over-year, giving markets some relief. The economy remains resilient, with growth still tracking near 2.3%⁵ for the year. However, Fed officials remain split on how quickly inflation will fall, and the current policy rate is likely to stay in place. Geopolitical shocks from the Iran conflict now complicate that outlook further.

OIL PRICES RISE AS U.S.-IRAN TENSIONS ADD RISK
Oil climbs as tensions with Iran disrupt shipping. Renewed hostilities between the U.S. and Iran pushed Brent crude oil toward one-month highs, as shipping through the Strait of Hormuz was interrupted. Domestically, gas prices rose roughly 10 cents a gallon⁶ over the week. Some policymakers worry higher energy costs could keep inflation elevated longer than expected, even as demand forecasts hint at longer-term relief.

EARNINGS SEASON STARTS STRONG AS AI STOCKS PULL BACK
Bank earnings solid, but chip stocks stumble. Major banks posted results that pointed to a healthy credit environment and a resilient consumer. Major indexes edged higher Wednesday as earnings and softer inflation data lifted sentiment. Retail and travel stocks led the gains. Semiconductor and AI-linked names moved in the opposite direction, selling off sharply later in the week on profit-taking and valuation concerns.

ECONOMIC DATA TO WATCH IN THE WEEK AHEAD
Looking ahead, investors will get a fresh round of U.S. data. Weekly jobless claims arrive Thursday⁷, July 23. Flash readings on business activity and new home sales for June follow Friday⁷. Together, these reports will shape expectations about how long interest rates will remain elevated. At the same time, Q2 earnings season continues, offering a read on whether profits and market leadership are broadening beyond a handful of AI-driven mega-cap tech stocks.

PERSPECTIVE
If you have questions about how recent market developments may relate to your broader financial plan, or portfolio please reach out. We are here to help you think through the data, risks, and next steps in the context of your long-term goals.

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
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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)