LPL Research provides its Weekly Market Performance for the week of July 6, 2026. Markets showed some resilience over the last five days, with U.S. equities advancing despite geopolitical tensions in the Middle East. A bounce in the momentum trade and big tech stocks supported gains, while investors largely looked past renewed U.S.-Iran tensions even as talks continued. International markets were more mixed, with Europe retreating from record highs amid inflation and geopolitical concerns, while Asian markets ended mixed. In fixed income markets, this week’s slate of Treasury auctions was well-received while commodities were led higher by crude prices following the ramp in kinetic action in the Middle East.
Stock Index Performance
| Index | Week-Ending | One Month | Year to Date |
| S&P 500 | 1.17% | 4.18% | 10.59% |
| Dow Jones Industrial | -0.41% | 5.54% | 9.61% |
| Nasdaq Composite | 1.79% | 4.47% | 13.14% |
| Russell 2000 | -0.59% | 5.04% | 20.00% |
| MSCI EAFE | 0.10% | 2.86% | 8.79% |
| MSCI EM | 1.78% | 3.42% | 22.22% |
S&P 500 Index Sectors
| Sector | Week-Ending | One Month | Year to Date |
| Materials | -2.01% | 3.60% | 11.49% |
| Utilities | -0.91% | 3.62% | 6.20% |
| Industrials | -0.83% | 7.73% | 17.59% |
| Consumer Staples | -1.29% | -2.35% | 7.52% |
| Real Estate | -0.78% | -1.06% | 10.43% |
| Health Care | -1.92% | 5.49% | 3.84% |
| Financials | -0.03% | 6.83% | 1.58% |
| Consumer Discretionary | 0.57% | 3.78% | -0.53% |
| Information Technology | 3.49% | 5.16% | 19.55% |
| Communication Services | 2.09% | 2.23% | 4.35% |
| Energy | 2.59% | -5.67% | 21.39% |
Fixed Income and Commodities
| Indexes and Commodities | Week-Ending | One Month | Year to Date |
| Bloomberg U.S. Aggregate | -0.35% | 0.21% | 0.13% |
| Bloomberg Credit | -0.45% | 0.14% | 0.24% |
| Bloomberg Munis | -0.32% | 0.27% | 1.91% |
| Bloomberg High Yield | 0.05% | 0.82% | 2.10% |
| Oil | 4.18% | -20.52% | 24.63% |
| Natural Gas | -7.92% | -7.60% | -20.16% |
| Gold | -1.88% | 0.64% | -5.11% |
| Silver | -4.57% | -6.00% | -16.89% |
Source: LPL Research, Bloomberg 7/10/26 @ 3:05 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.
U.S. and International Equities
U.S. Equities: Equity markets displayed some resilience through a few moving pieces over the first full week of July. Major averages were on the offensive for most sessions this week with a noteworthy bounce in the momentum trade cushioning mid-week declines and driving late-week gains. Magnificent Seven and big tech were among the beneficiaries with some corporate news also in focus, including Broadcom (AVGO) extending its collaboration with Apple (AAPL), Meta’s (META) chip manufacturing plans, and AI overall spending optimism from the latest infrastructure agreements. Investors were quick to digest the latest flare-up in U.S.-Iran tensions, broadly shrugging off U.S. strikes retaliating for Iranian attacks on vessels in the Strait of Hormuz, and the rise in oil prices that followed. Wall Street chatter continued to flag the escalate-to-de-escalate dynamic as peace talks reportedly continue, as the U.S. seems to continue favoring a diplomatic resolution.
On the corporate front, some of the first earnings reports of the season began to trickle in. Consumer names faced some headwinds, as PepsiCo (PEP) missed organic sales growth estimates on inflationary pressures, while Costco (COST) posted slowing sales growth and Levi Strauss (LEVI) fell slightly short of estimates.
International Equities: European equities dropped over the last five days, pulling back from last Friday’s record high. This week’s rise in crude oil prices and geopolitical tensions were the primary drivers of sentiment as worries about increasing price pressures and additional central bank tightening led investors to take some risk off the table. Risk appetite was also muted by slightly hotter-than-expected May wholesale inflation data released Monday. Meanwhile, on the corporate front, heavy merger and acquisition headlines were highlighted by U.K. airline EasyJet, which jumped after agreeing in principle to U.S. investment firm Castlelake’s takeover bid before receiving a surprise bid from Apollo to rival Castlelake’s offer.
Major Asia-Pacific markets ended mostly lower on the week as tech shares stayed in focus across the region. Hong Kong led gains, rallying 3.5% in its best week since last October as offshore shares benefited from investors rotating to first half laggards and on some local AI optimism. On the other hand, South Korea finished sharply lower after Samsung’s 19-fold profit surge failed to satisfy markets, however, SK Hynix’s successful U.S. offering was one of the big global stories this week. Mainland China gained on hopes of government support for the tech industry, before reversing gains Friday. Japan’s tech-heavy Nikkei was also weighed down by tech names while the Topix ended only modestly lower on support from cyclical sectors. Taiwan was pressured by tech selling in a weather-shortened week.
Fixed Income, Currency, and Commodity Markets
Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded lower this week. The Treasury Department sold $119 billion (total) of 3-year, 10-year, and 30-year debt this week, and all three auctions stopped through (investors accepted yields below the market), signaling that demand for duration remains healthy, even at the long end where supply concerns have been loudest.
The backdrop makes it more notable: 30-year real yields are around record highs. Normally, elevated real yields are a symptom of weak demand, with investors requiring extra compensation to hold long-duration paper. Three stop-throughs flip that logic. Buyers are treating record real yields as value rather than risk compensation, locking in some of the best after-inflation income in decades. Record real yields with weak auctions would be a stress signal. With strong auctions, however, that could be an opportunity signal.
This week takes some pressure off the “who’s going to buy all this debt” narrative. Deficits and heavy issuance haven’t gone anywhere, but at these yield levels the marginal buyer keeps showing up. Supply is clearing through price, not through failed demand, which is exactly how the market is supposed to work. The bigger takeaway for investors is that we may be settling into a regime where real rates stay structurally elevated, driven by AI capex, fiscal borrowing, and broad demand for capital rather than inflation fear. That’s a favorable setup for investors as investors are being paid a historically generous real yield to own high-quality fixed income, and this week’s auctions suggest institutional money agrees.
Commodities and Currencies: The broader commodity complex gained ground through Friday afternoon, set to break a string of muted trading in recent weeks. Renewed tensions between Washington and Tehran sent West Texas Intermediate (WTI) crude prices back above $70 per barrel on fresh shipping disruptions in the Strait of Hormuz rekindled supply worries. After stating the ceasefire may be over and two-days of strikes, oil prices trimmed weekly gains and both sides appeared to continue de-escalation negotiations. Gold traded lower as expectations of tighter monetary policy for longer, with the same dynamic sending silver lower as well. In currencies, the U.S. dollar index was little changed as continued weakness in the yen was countered by strength in the pound versus the greenback.
Economic Weekly Roundup
Highlights from the June ISM Services Index:
- World Cup-related hiring in the U.S. likely contributed to the increase to the ISM Services Employment Index released Monday morning.
- Businesses were mostly likely done restocking inventories in June which means we shouldn’t expect this to contribute much to the GDP figures due out at the end of the month. (But we should still see strong contributions from AI-related capex and consumer spending, keeping growth above trend.)
- Input prices for June ISM Services fell the lowest since February and shows that recent inflation pressures will not likely persist.
- Health care services are in high demand. According to those in the C – suite, “Despite economic headwinds like persistent inflation, patient volumes and overall business activity remain strong reflected mainly by outstanding revenue performance.”
- Demand remains strong in infrastructure, environmental, and resilience projects, but the services sector faces persistent labor inflation, supplier capacity constraints, and regulatory complexity—particularly in California and other high-cost markets.
- Retail business has been very strong during what is usually a less active time of the year. Pricing is stable, and employment is just where it needs to be.
Bottom Line: The June ISM services Report on Business suggests the economic growth trajectory looks favorable and explains the upward pressure on the 10-year Treasury. As tariff and geopolitical stress abate, we should see further improvements with inflation dynamics, although not enough for the Fed to capitulate on its hawkishness.
The Week Ahead
The following economic data is slated for the week ahead:
- Monday: Federal Budget Balance (Jun)
- Tuesday: NFIB Small Business Optimism (Jun), ADP Weekly Employment Change (Jun 27), Real Average Weekly and Hourly Earnings (Jun), Headline and Core CPI (Jun), Total Net TIC Flows (May), Net Long-term TIC Flows (May)
- Wednesday: MBA Mortgage Applications (Jul 10), Empire Manufacturing (Jul), Headline and Core PPI (Jun), Fed Beige Book Release
- Thursday: New York Fed Services Business Activity (Jul), Philadelphia Fed Business Outlook (Jul), Retail Sales (Jun), Initial Jobless Claims (Jul 11), Continuing Claims (Jul 4), NAHB Housing Market Index (Jul), Business Inventories (May), Pending Home Sales (Jun)
- Friday: Import and Export Price Indexes (Jun), Housing Starts (Jun), Building Permits (Jun preliminary), Industrial and Manufacturing Production (Jun), Capacity Utilization (Jun), University of Michigan Sentiment Report (Jul preliminary)
Important Disclosures
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Asset Class Disclosures –
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The fast price swings of commodities will result in significant volatility in an investor’s holdings.
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