Financial markets experienced mixed movements on Friday, July 24, 2026. Global indices reacted to ongoing geopolitical instability in the Middle East, coupled with strong investor focus on the artificial intelligence (AI) sector and global energy prices.
U.S. Market Indices Performance
On Friday, the S&P 500 index closed near flat, having been weighed down primarily by declines in chip stocks. The broad market index managed to increase by just 0.05%, settling at 7,411.98 points. Conversely, the tech-heavy Nasdaq Composite dropped by 0.64%, ending at 24,975.82.
The Dow Jones Industrial Average showed gains of 235.60 points, or 0.46%, finishing at 51,947.25. This increase was notably supported by a substantial 3.5% jump in Apple‘s stock, which helped boost the blue-chip index.
While stocks had climbed earlier in the trading day, oil prices saw a pullback following reports from Reuters, citing three Pakistani sources. The report indicated that Pakistan is contemplating initiating new peace talks between the U.S. and Iran, with China spearheading the effort. However, these same sources cautioned that significant hurdles remain for any discussions involving the United States.
Geopolitical Risk and Oil Prices
Tensions in the Middle East remained a key concern influencing market sentiment. Earlier this week, U.S. President Donald Trump addressed Axios regarding potential military escalation. He stated his consideration of launching a “massive attack” on Iran after the conflict expanded into new areas in the Red Sea. Speaking to the outlet, he asserted that the proposed strikes would be larger than anything witnessed thus far and added that Iran had not yet “received enough pain.”
I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it.
The gravity of the situation was highlighted by The New York Times, which reported that on Friday, Trump held a meeting with senior cabinet members and top advisors to determine whether to escalate U.S. military actions against Iran. Following this report, oil prices declined from their earlier highs. Brent crude futures, which had topped $100 per barrel for the first time since late May, eased down to close at $96.78, representing a fall of nearly 4%. Meanwhile, U.S. West Texas Intermediate (WTI) futures dropped 3%, concluding at $89.31 a barrel.
Technology Sector and Earnings Analysis
The semiconductor sector experienced significant volatility. Intel shares fell almost 8%, reversing earlier gains, while other chipmakers followed suit. Broadcom declined by 2.7%, Advanced Micro Devices (AMD) dropped 3.3%, Micron Technology declined 7%, and the VanEck Semiconductor ETF (SMH) pulled back 3%.
Despite the dip in tech stocks, overall corporate earnings showed strength. FactSet reported that with 27% of S&P 500 companies submitting their results, a high percentage—86%—had surpassed earnings-per-share estimates, and 80% had exceeded revenue forecasts. The blended earnings growth rate for the quarter stood at 37.9% year-over-year, marking a sharp increase from the 23.2% growth projected before June 30.
Bill Northey, investment director at U.S. Bank Asset Management Group, commented on the market flow, stating that while day-to-day movements show “outsized flows,” investors should focus on sectors with powerful earnings growth potential for 2026 and 2027.
We just have to understand that there’s going to be some sentiment flows that occur in and around the space.
Global Market Outlook and Policy Concerns
Market analysts noted that geopolitical instability could continue to influence Federal Reserve policy until energy flow predictability improves. Thomas Urano, co-CIO at Sage Advisory, advised that “Policymakers have limited ability to offset supply-driven price shocks,” adding that uncertainty surrounding Middle East developments reduces confidence in any projected rate path.
Regarding the economy, Michael Hartnett, an investment strategist at Bank of America, suggested a bullish stance on specific sectors. He noted that “blue collar semis”—including companies like Texas Instruments and Analog Devices—are significantly below their peak levels as of June and recommended taking long positions in defensives, dividends, duration, tech, and industrials.
Furthermore, Deutsche Bank anticipates strong earnings for Meta, citing the improvement in ad performance driven by AI-powered tools. The analyst raised Meta’s revenue estimates from $60.3 billion to $60.5 billion, suggesting that Alphabet’s steady Search revenue growth provides a positive boost for Meta.
In Asia-Pacific markets, selling pressure was noted across the region; South Korean equities were particularly affected, with the Kospi plunging over 5.7%. Meanwhile, Asian markets remained cautious amid concerns related to higher oil costs and Middle East tensions.
