The S&P 500 Index ($SPX) (SPY) on Friday fell -0.08%, the Dow Jones Industrial Average ($DOWI) (DIA) rose +0.39%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell -1.27%. September E-mini S&P futures (ESU26) fell -0.08%, and September E-mini Nasdaq futures (NQU26) fell -1.34%.
A pointy sell-off in chip shares put downward stress on the general market Friday, with the iShares Semiconductor ETF (SOXX) falling by more than -4%. Chip shares fell amid ongoing considerations about the sustainability of AI demand, even though Intel forecast a sharp short-term increase in Q3 gross sales tied to knowledge middle demand.
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Another bearish issue was President Trump’s new tariff regime on 60 nations and his risk of new EU tariffs in retaliation for the EU’s $1 billion positive for Alphabet. Also, the markets are frightened that the US might develop its army attacks on Iran, as President Trump said he is contemplating.
On the bullish facet, WTI crude oil costs fell by -3% as oil shipments in the Red Sea proceed despite Houthi threats. Stocks also saw support as the 10-year T-note yield fell -1.4 bp.
President Trump late Thursday announced broad tariffs ranging from 10% to 12.5% on 60 nations, changing the 10% international import tax that expired. The new tariffs are based mostly on commerce authority under Section 301 of the Trade Act of 1974 tied to a claim of compelled labor in provide chains. Mr. Trump had to search new commerce authority after the Supreme Court struck down his so-called reciprocal tariffs in February. Mr. Trump changed the reciprocal tariffs with a 10% international import tax that expired Friday.
The new forced-labor tariffs exclude some key gadgets such as fuel, meals, fertilizer, and merchandise coated by the North American commerce settlement with Mexico and Canada. The new tariffs also exclude cars, metals, and medicine, which are coated by tariffs based mostly on a totally different commerce authority. The Trump administration has a raft of other Section 301 investigations underway that could be used to impose more tariffs in the future, stacked on high of right this moment’s forced-labor tariff.
Sep WTI crude oil costs (CLU26) fell -3.12% on Friday, reversing about half of Thursday’s +6.17% rally. Meanwhile, Sep Brent crude oil costs (CBU26) fell back to the $97-per-barrel space after hitting a 2-month high of $102 on Thursday. Oil costs fell as oil tankers continued to transfer through the Red Sea despite Houthi threats, with some oil tankers turning off their location transponders.
WTI oil costs soared by more than +6% on Thursday after the Iran-backed Houthis launched a missile and drone attack on two Saudi Arabian oil tankers in the Red Sea, increasing the oil disruptions beyond the Strait of Hormuz and threatening oil shipments in the Red Sea. President Trump responded by saying on Thursday that he holds Iran accountable for the Houthi attacks and telling Axios in an interview that he is contemplating a “massive attack” that would be “bigger than ever before” and is “close to making a decision on it.”
The Houthis have vowed to blockade delivery linked to Saudi Arabia and warned shipowners against calling at the nation’s ports. The transfer threatens Saudi oil exports from Yanbu, a Red Sea hub that the Saudi’s are utilizing to ship crude since the battle introduced delivery through the Strait of Hormuz to a close to halt.
Friday’s US PMI report was combined for the greenback. The S&P July manufacturing PMI fell barely by -0.1 level to 53.8, weaker than expectations for a +0.5 level increase to 54.4. However, the S&P July companies PMI rose by +2.4 factors to 53.6, which was stronger than expectations for a +0.3 level increase to 51.5.
US June new home gross sales rose by +1.6% m/m to 628,000 from a revised May degree of 618,000 (preliminary 580,000), which was stronger than expectations of 607,000. However, June building permits fell -2.6% to 1.374 million.
The outlook for robust Q2 earnings, which started in earnest this week, is a bullish issue for shares. Forecasts compiled by Bloomberg Intelligence counsel Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure shares set to contribute almost 60% of the S&P 500’s earnings-per-share growth in Q2. So far, earnings outcomes have been constructive, with 89% of S&P 500 corporations that reported Q2 earnings beating estimates, according to knowledge compiled by Bloomberg.
The markets are discounting a 38% probability of a +25 bp price hike at the next FOMC assembly on July 28-29.
Overseas stock markets on Friday closed combined. The Euro Stoxx 50 closed up +1.14%. China’s Shanghai Composite closed down -1.61% on Friday. Japan’s Nikkei-225 Stock Average closed down -2.73%.
Interest Rates
September 10-year T-notes (ZNU6) on Friday rose +6.5 ticks. The 10-year T-note yield fell -1.4 bp to 4.679%, down from the 1.5-year high of 4.712% posted early in the session. The 10-year T-note yield rose by a web +13 bp this week on inflation considerations tied to the surge in oil costs and President Trump’s new spherical of tariffs. Yet, the T-note yield Friday fell back as the 10-year inflation expectations price fell by -1.9 bp to 2.245%, tied in half to the concept that the surge in oil costs and the new tariffs will dampen US financial growth and probably cause the Fed to be less hawkish.
European authorities bond yields traded decrease. The 10-year German bund yield fell -3.0 bp to 3.172%, down from Thursday’s 15-year high of 3.128%. The 10-year UK gilt yield fell -7.0 bp to 5.032%, down from Thursday’s 2-month high of 5.122%.
The ECB at its coverage assembly on Thursday left its key deposit price unchanged at 2.25%, in line with market expectations. The ECB said it left charges unchanged, awaiting further knowledge to decide whether further price hikes are obligatory to handle the inflation outlook. However, ECB President Christine Lagarde said, “Risks to the inflation outlook are to the upside.” The markets are discounting a 90% probability of a +25 bp ECB price hike at its next coverage assembly on September 10.
US Stock Movers
The Magnificent 7 closed combined, stabilizing after Thursday’s sharp sell-off. Alphabet (GOOGL) rose +0.65% on Friday after falling -7% on Thursday. Tesla (TSLA) on Friday closed down -2%, including to Thursday’s -14% plunge. Apple (AAPL) closed the day up +3.53%.
The chip sector closed sharply decrease on Friday, despite Intel’s (INTC) blockbuster income forecast, on considerations about overspending on knowledge facilities and an AI bubble. Intel forecasted Q3 income of $15.8-16.8 billion, nicely above the analyst consensus of $15.1 billion, with an expected +59% q/q surge in knowledge middle gross sales. Despite that income forecast, Intel (INTC) fell more than -7%. Other than Intel, chip corporations that closed more than -5% decrease included Arm Holdings (ARM), Marvell Technologies (MRVL), Micron Technology (MU), and GlobalFoundries (GFS).
Software shares confirmed power, rebounding increased after Thursday’s losses. Atlassian (TEAM) closed up more than +8%, ServiceNow (NOW) closed up more than +7%, and Adobe (ADBE) closed up more than +6%. Workday (WDAY) and Intuit (INTU) closed up more than +5%.
Oracle (ORCL) fell by more than -4% despite its favorable announcement of a 10-year contract with the US Department of Defense, valued at more than $3 billion for the first 5 years and probably as much as $7 billion over 10 years. Oracle fell amid market considerations about its heavy capital spending and knowledge middle publicity.
Charter Communications (CHTR) fell -1.47% after reporting an earnings miss.
Newmont Corp (NEM) fell -1.62% despite reporting favorable Q2 earnings and sustaining its full-year manufacturing steering.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either straight or not directly) positions in any of the securities talked about in this article. All info and knowledge in this article is solely for informational functions. This article was initially revealed on Barchart.com
