NEW YORK, July 19, 2026, 13:06 EDT — U.S. cash markets have closed.
- The S&P 500 declined 1.55% last week, with the Nasdaq down 2.9% and the Dow shedding 0.93%.
- Shares of semiconductor companies fell approximately 10%. Still, 90% of the initial 49 S&P 500 companies to report surpassed expectations.
- Over 80 S&P 500 firms are set to report earnings this week, with AI investment and chip demand in focus.
Wall Street heads into Monday with little room for earnings disappointment. The Philadelphia semiconductor index declined around 10% last week, while the S&P 500 slid 1.55%.
The approximately 8.5-point spread is the most visible signal for investors. Losses widened on Friday, but weekly declines were mainly focused on heavily traded AI and momentum stocks.
Strong profits limited losses in the broader market amid a chip sector decline. Ninety percent of the 49 S&P 500 firms that have reported so far have exceeded forecasts.
LSEG LON:LSEG now projects total second-quarter earnings growth at 26.0%, up from 19.2% estimated on April 1. The data are still early, as the majority of companies have yet to announce results.
Partial fund-flow data up to July 15 backs the view of a market rotation. Growth funds saw outflows of $7.18 billion, whereas value funds gained $3 billion in inflows. Total outflows from U.S. equity funds reached $4.8 billion.
“Investors have mostly been rotating exposure, not significantly cutting risk overall,” said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. Reuters
Friday’s closing figures and weekly movements were:
| Benchmark | Friday close | Friday | Week |
|---|---|---|---|
| S&P 500 | 7,457.69 | down 1.01% | down 1.55% |
| Nasdaq Composite | 25,520.24 | down 1.40% | down 2.90% |
| Dow Jones Industrial Average | 52,146.42 | down 0.77% | down 0.93% |
The semiconductor index remains over 60% higher in 2026, but recently closed just above 20% under its June peak. With substantial gains and leveraged trades, there is minimal tolerance for weaker guidance.
“It’s like the market has chip fatigue,” said Ryan Detrick, chief market strategist at Carson Group. Chip stocks have fallen in three of the last four weeks. Reuters
The S&P 500 is still up nearly 9% for the year, trading about 2% under its record high set in early June. Slower consumer and producer inflation eased immediate rate concerns, but declines in oil and technology offset those gains.
Energy was the sole gaining S&P sector on Friday. Brent crude surged 4.59% to $88.10, heightening inflation concerns amid a technology sector selloff.
The week ahead features a packed earnings calendar but relatively little economic data, with over 80 S&P 500 firms set to release results.
| Date | Main catalyst | Investor test |
|---|---|---|
| Monday, July 20 | U.S. leading indicators | Growth trends |
| Wednesday, July 22 | Alphabet NASDAQ:GOOGL and Tesla NASDAQ:TSLA results | AI investment, profitability and demand |
| Thursday, July 23 | Intel NASDAQ:INTC results; jobless claims | Broad chip demand and labor force strength |
| Friday, July 24 | American Express NYSE:AXP results; flash PMIs; new-home sales | Consumer borrowing and U.S. growth |
Alphabet is in focus this week. Investors are set to assess if the company’s AI infrastructure spending is holding steady. A reduction in spending could have “ripple effects across the entire AI ecosystem,” according to Kevin Mahn of Hennion & Walsh Asset Management. Reuters
Intel’s results are set to clarify whether valuation worries stem from actual chip demand decline. Tesla continues to test the market’s appetite for costly AI plans. American Express results will shed light on high-income consumer spending and trends in credit quality.
The Federal Reserve will not set policy this week; its upcoming meeting is scheduled for July 28-29. Market expectations for rates are likely to be influenced by Thursday’s jobless claims and Friday’s business surveys.
Risks: Oil prices may obscure earnings signals. Data released on Sunday indicated traffic through the Strait of Hormuz dropped to three commodity tankers on Thursday, marking the lowest level since May. An additional surge in crude prices could stoke inflation and rate worries ahead of the Fed meeting.
Breadth is now a key focus for investors, outweighing the headline index. Continued earnings outperformance and steady value inflows could limit chip sector losses. But a downgrade in AI spending forecasts may trigger a broader earnings reset.
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