Source: Charles Schwab, data from 7/20 – 7/24

Weekly Market Minute

📰 Our 2026 Mid-Year Market Commentary is out on our website. Read the full commentary here or linked below.

🧭 This Week In the Markets

Image Source: J.P. Morgan

Wall Street Pushes Back on AI Spending

Alphabet and Tesla collectively lost approximately $500 billion in market value following their second-quarter earnings reports this week, as investors questioned the near-term returns on their aggressive spending plans. Alphabet delivered strong revenue growth, with revenue rising 24% year-over-year to $119.8 billion and Google Cloud revenue surging 82% to $24.8 billion. However, shares declined after the company increased its 2026 capital expenditure outlook to $195–$205 billion and indicated spending could accelerate further in 2027. Tesla also exceeded revenue expectations with $28.2 billion in quarterly sales, but adjusted earnings per share missed consensus estimates. Investors focused on declining margins and sharply higher capital spending as the company continues investing in autonomous driving, robotaxis, AI infrastructure, and robotics. The market’s reaction underscores investors’ growing focus on balancing ambitious long-term investments with near-term profitability and cash flow.

Energy Costs Rise as Oil Prices Climb

A sharp weekly increase in oil prices could translate into higher costs for consumers, particularly at the gas pump and across transportation-dependent goods and services. Brent crude traded near $97 per barrel on Friday and was up roughly 10% for the week, while West Texas Intermediate traded around $89 per barrel and gained approximately 8%. Although prices eased on Friday, continued instability around major shipping routes, including the Red Sea and Strait of Hormuz, could keep global energy markets tight and prices elevated. If sustained, those higher costs may be passed along to consumers and contribute to broader inflationary pressure throughout the economy.

Initial Jobless Claims Fall to Lowest Level Since 1969

The U.S. labor market continued to show resilience this week as initial jobless claims fell to 187,000 for the week ended July 18, well below economists’ expectations of 212,000 and marking the lowest level since September 1969. Weekly jobless claims are one of the timeliest indicators of labor market conditions, and the latest report suggests employers continue to retain workers despite ongoing economic uncertainty. Continuing unemployment claims also declined, indicating fewer individuals remain on unemployment benefits. While hiring has moderated compared to recent years, historically low layoffs point to a labor market that remains fundamentally healthy and provides a solid foundation to support consumer spending and overall economic growth.

🏢 Corporate Earnings

• Alphabet (GOOGL) reported mixed results, with adjusted earnings per share of $2.85 missing estimates of $2.89 while revenue of $119.8 billion exceeded expectations of $116.9 billion.
• Tesla (TSLA) posted an earnings miss, with earnings per share of $0.33 compared to estimates of $0.51, while beating revenue estimates with $28.2 billion in the quarter compared to $25.7 billion expected, as higher operating expenses, weaker automotive margins, and negative free cash flow weighed on results.
• Intel (INTC) delivered strong second-quarter results, with adjusted earnings per share of $0.42 compared to estimates of $0.21 and revenue of $16.1 billion exceeding expectations of $14.4 billion, driven by robust demand for AI infrastructure and continued strength in its data center business.

📊 Sector Performance

5-day closing price ($) and change (%)

Source: Select Sector SPDRs, data based on the Sector SPDR ETFs as of 7/24

Latest from EMW

2026 Mid-Year Market Commentary
The first half of 2026 reinforced an important lesson for investors: financial markets can continue to advance even amid heightened uncertainty.

📰 Dollars & Sense: This Week’s Rapid Read

529-to-Roth IRA Rollovers: What to Know
Unused 529 funds can be rolled into the beneficiary’s Roth IRA without a tax penalty. But that’s probably not a reason to overfund 529s.

Source: Charles Schwab

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Sources: Yahoo Finance, The Guardian, CNBC, AP News
Corporate Earnings: Alphabet, Tesla, Intel

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