Markets In Focus: The Week That Was and What’s On Tap Week-Ending 7/10/2026
THE WEEK THAT WAS
The US stock market delivered mixed but resilient results this week, with the S&P 500 rising roughly 1.2%, the Nasdaq Composite advancing 1.8%, and the Russell 2000 declining 0.6%. Gains were driven by strength in AI and technology, while small-caps lagged amid rotation and geopolitical concerns. Breadth was constructive at times, underscoring selective opportunities beyond mega-caps.
AI and semiconductor stocks remained the primary focus amid ongoing volatility. Early gains were fueled by Broadcom’s multi-year Apple chip supply extension, but the sector faced profit-taking pressure before rebounding sharply. Micron led the charge with plans for over $250 billion in US investments through 2035 to capitalize on AI memory demand, boosting sentiment around compute, networking, and related infrastructure plays. This reinforced the structural growth story in the AI buildout despite debates over valuations and near-term capex returns.
Geopolitical developments spiked volatility. Renewed US-Iran tensions and disruptions in the Strait of Hormuz pushed oil prices higher mid-week, lifting yields and pressuring risk assets. Markets largely digested the news as contained, with energy names benefiting selectively while growth stocks recovered on tech momentum.
Macro data was relatively light for the week, featuring jobless claims and existing home sales. Attention stayed on the Federal Reserve, with FOMC minutes and speeches from officials like Williams and Logan offering modest guidance under Chair Warsh. Investors now look ahead to next week’s CPI for clearer inflation signals.
The earnings calendar was light, but provided some useful consumer insights. PepsiCo’s quarter highlighted ongoing pressure on US households, with North American snack volumes flat and beverage volumes down as consumers faced higher gas prices and inflation. Shoppers gravitated toward value options, smaller packs, and reduced impulse buys, though demand for healthier/functional products (prebiotic sodas, zero-sugar, protein snacks) offered offsets. International growth remained solid, with the company anticipating consumer improvement in H2. Delta Air Lines’ report, by contrast, pointed to resilient leisure and corporate travel demand. Strength in premium cabins, loyalty programs, and international routes signaled that consumers continue prioritizing experiences and higher-margin travel even amid caution on daily staples.
THE WEEK AHEAD
Equity markets enter the week ending July 17 with three distinct catalysts converging: Q2 earnings season, a data- heavy macro calendar, and renewed volatility out of the Middle East. Q2 reporting begins in earnest Tuesday as JPMorgan, Bank of America, Citigroup, Wells Fargo, and BlackRock post pre-market results, with consensus calling for roughly 24% S&P 500 earnings growth on 11.7% higher revenues, the fastest pace since 2021. Loan growth and net interest margin commentary will be scrutinized as a read on broader credit conditions, while investment banking guidance should offer an early signal on capital markets activity heading into the back half of the year.
The AI theme faces its own test this week through two critical semiconductor prints. ASML reports Wednesday before the open, with consensus modeling normalized EPS near $7.82 on roughly $10.16 billion in revenue. Management previously guided second-quarter sales between €8.4 billion and €9.0 billion and raised full-year 2026 guidance to €36 billion to €40 billion, citing AI-driven capacity expansion among logic and memory customers now described as sold out for the year. Bookings and lithography intensity commentary will be the key swing factors for how markets price the durability of AI capital spending. TSMC follows Thursday, with consensus revenue near $40 billion, up roughly 32% year-over-year, and EPS growth exceeding 50%. TSMC has already guided toward the high end of its $52 billion to $56 billion 2026 capex range, and investors will focus on CoWoS advanced packaging capacity, since that remains the primary bottleneck constraining AI chip output. Given both companies sit upstream of the entire AI supply chain, any softening in bookings language or capacity commentary would ripple quickly through semiconductor equipment and hyperscaler capex sentiment.
On the data front, Tuesday’s CPI (Consumer Price Index) print carries elevated weight given inflation’s recent reacceleration. Consensus looks for headline CPI near 3.9% year-over-year, down modestly from May’s 4.2%, with core CPI expected around 2.9% to 3.0%, reflecting persistent shelter and services stickiness even as energy remains the primary swing factor tied to Middle East disruptions. Wednesday brings PPI (Producer Price Index), and Thursday’s retail sales report will help clarify whether consumer spending is holding up amid a cooling labor market.
Geopolitically, renewed US-Iran hostilities around the Strait of Hormuz remain the dominant tail risk. Tanker traffic through the waterway has slowed materially following fresh strikes, and Brent has climbed back above $76 after the earlier ceasefire-driven selloff. Energy price volatility bears watching as a potential complicating factor for both the inflation trajectory and Fed policy calculus under Chair Warsh heading into the July 29 FOMC meeting.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
