Market Update
Middle East Tensions Keep Wall Street Gains In Check
Barry Adams
15 Jul, 2026
New York City
U.S. indexes rebounded for the second consecutive session as investors overlooked escalating tensions in the Middle East.
The S&P 500 Index edged up 0.1%, the tech-heavy Nasdaq Composite inched higher 0.4%, and investors focused on the fresh batch of earnings.
The West Texas Intermediate crude oil price increased 0.7% to $79.88 a barrel, and the Brent crude oil price advanced 0.8% to $85.41 a barrel as the U.S. and Iran exchanged military attacks over the Strait of Hormuz.
Increasingly, commercial shipping companies are looking for alternative routes as the war in the Middle East shows no signs of ending, despite repeated claims by the U.S. president.
In early February, the U.S. president claimed that the war on Iran, not approved by the U.S. Congress, would be over in a week, which was later extended to a couple of months.
Israel started the war on Iran, and the U.S. joined the attacks on February 28, and the war has since dragged to its fifth month and has already cost the U.S. Treasury more than $70 billion.
Moreover, the surge in crude oil prices has stalled global economic growth and stoked domestic inflation after gasoline prices at pump stations soared as much as 50% over the last five months.
Cooler Inflation for Now, But Higher Prices Loom Large
Producer price inflation in June edged lower on a monthly basis, the first monthly decline since August 2025, according to the U.S. Bureau of Labor Statistics.
The seasonally adjusted annual pace of inflation in June slowed to 5.5% from 6.0% in the previous month, supported by the weakening of energy prices.
The core rate of inflation, which excludes volatile food and energy prices, rose 0.2% on the month and 4.7% from a year ago.
Market sentiment improved after the softer-than-expected U.S. inflation reduced expectations of a near-term interest rate hike.
The annual pace of inflation eased to 3.5% in June from 4.2% in May as lower oil prices moderate energy inflation, according to the U.S. Bureau of Labor Statistics.
On a monthly basis, consumer prices fell 0.4% from the previous month, marking the first monthly decline since 2020.
Fed's policymakers pay close attention to consumer and producer price inflation updates, but they prefer to follow the personal consumption expenditures price index, which generally understates inflation in the economy.
For May, the PCE price index indicated a headline inflation of 4.1% and a core rate at 3.4%, and both measures are likely to weaken in June following this week's releases.
U.S. Movers
ASML Holding NV increased 3.3% to $1,835.01 after the advanced semiconductor equipment maker raised its sales outlook for the second time this year.
Total net sales in the second quarter surged to €9.3 billion from €8.8 billion, net income edged up to €2.9 billion from €2.7 billion, and diluted earnings per share advanced to €7.59 from €7.15 a year ago.
The Dutch equipment maker revised the 2026 sales outlook range to between €43 billion and €45 billion, from the previous estimated range between €36 billion and €40 billion.
ASML also lifted its gross margin range to between 54% and 56% from the previous range between 51% and 53%.
The company said it is planning to increase its production capacity by 30% in 2027 and 2028, meeting higher demand from the makers of advanced logic and memory chips.
The company announced an interim dividend of €1.88 on August 5 and, in the second quarter, repurchased €1.1 billion of its shares under the current buyback program, which is ending in 2028.
Pentair PLC plunged 23% to $58.50 after the water treatment equipment maker estimated weaker-than-expected results in the second quarter.
The company guided revenue of $930 billion and adjusted earnings per share of $1.12, sharply lower than analysts' estimates available on FactSet of $1.14 billion and $1.48, respectively.
Morgan Stanley increased 1.5% to $231.15 after the financial service company reported record revenue and profit in the second quarter.
Net revenue in the second quarter increased to $21.4 billion from $16.8 billion, net income jumped to $5.6 billion from $3.5 billion, and diluted earnings per share increased to $3.46 from $2.13 a year ago.
Resurgent markets in the second quarter contributed to the rise in trading revenue in the fixed-income and equities divisions.
The institutional securities group's revenue rose to a record $11.0 billion from $7.6 billion, and the wealth management group's revenue rose to a record of $8.9 billion from $7.8 billion a year ago.
Return on equity jumped to 20.7% from 13.9%, and tangible book value per share rose to $53.18 from $47.25 a year ago.
Middle East Tensions Keep Wall Street Gains In Check
Barry Adams
15 Jul, 2026
New York City
U.S. indexes rebounded for the second consecutive session as investors overlooked escalating tensions in the Middle East.
The S&P 500 Index edged up 0.1%, the tech-heavy Nasdaq Composite inched higher 0.4%, and investors focused on the fresh batch of earnings.
The West Texas Intermediate crude oil price increased 0.7% to $79.88 a barrel, and the Brent crude oil price advanced 0.8% to $85.41 a barrel as the U.S. and Iran exchanged military attacks over the Strait of Hormuz.
Increasingly, commercial shipping companies are looking for alternative routes as the war in the Middle East shows no signs of ending, despite repeated claims by the U.S. president.
In early February, the U.S. president claimed that the war on Iran, not approved by the U.S. Congress, would be over in a week, which was later extended to a couple of months.
Israel started the war on Iran, and the U.S. joined the attacks on February 28, and the war has since dragged to its fifth month and has already cost the U.S. Treasury more than $70 billion.
Moreover, the surge in crude oil prices has stalled global economic growth and stoked domestic inflation after gasoline prices at pump stations soared as much as 50% over the last five months.
Market sentiment improved after the softer-than-expected U.S. inflation reduced expectations of a near-term interest rate hike.
The annual pace of inflation eased to 3.5% in June from 4.2% in May as lower oil prices moderate energy inflation, according to the U.S. Bureau of Labor Statistics.
On a monthly basis, consumer prices fell 0.4% from the previous month, marking the first monthly decline since 2020.
U.S. Movers
ASML Holding NV increased 3.3% to $1,835.01 after the advanced semiconductor equipment maker raised its sales outlook for the second time this year.
Total net sales in the second quarter surged to €9.3 billion from €8.8 billion, net income edged up to €2.9 billion from €2.7 billion, and diluted earnings per share advanced to €7.59 from €7.15 a year ago.
The Dutch equipment maker revised the 2026 sales outlook range to between €43 billion and €45 billion, from the previous estimated range between €36 billion and €40 billion.
ASML also lifted its gross margin range to between 54% and 56% from the previous range between 51% and 53%.
The company said it is planning to increase its production capacity by 30% in 2027 and 2028, meeting higher demand from the makers of advanced logic and memory chips.
The company announced an interim dividend of €1.88 on August 5 and, in the second quarter, repurchased €1.1 billion of its shares under the current buyback program, which is ending in 2028.
Pentair PLC plunged 23% to $58.50 after the water treatment equipment maker estimated weaker-than-expected results in the second quarter.
The company guided revenue of $930 billion and adjusted earnings per share of $1.12, sharply lower than analysts' estimates available on FactSet of $1.14 billion and $1.48, respectively.
Morgan Stanley increased 1.5% to $231.15 after the financial service company reported record revenue and profit in the second quarter.
Net revenue in the second quarter increased to $21.4 billion from $16.8 billion, net income jumped to $5.6 billion from $3.5 billion, and diluted earnings per share increased to $3.46 from $2.13 a year ago.
Resurgent markets in the second quarter contributed to the rise in trading revenue in the fixed-income and equities divisions.
The institutional securities group's revenue rose to a record $11.0 billion from $7.6 billion, and the wealth management group's revenue rose to a record of $8.9 billion from $7.8 billion a year ago.
Return on equity jumped to 20.7% from 13.9%, and tangible book value per share rose to $53.18 from $47.25 a year ago.
Japan's Machinery Orders Remained Volatile In May, Tech Stocks Extended 2-Day Gain
Akira Ito
15 Jul, 2026
Tokyo
Japan's indexes extended their 2-day gain on Wednesday and overlooked escalating tensions in the Middle East.
The Nikkei 225 Stock Average increased 1.5%, the broader TOPIX advanced 1.2%, and the yen inched down to 162.16 against the U.S. dollar.
Stocks in Tokyo trading closed higher, tracking gains in overnight trading in New York driven by a leg up in advanced semiconductor and memory module makers.
Market sentiment improved after the softer-than-expected U.S. inflation reduced expectations of a near-term interest rate hike.
The annual pace of inflation eased to 3.5% in June from 4.2% in May as lower oil prices moderate energy inflation. On a monthly basis, consumer prices fell 0.4% from the previous month, marking the first monthly decline since 2020.
The Brent crude oil price rose 1% to $85.60 a barrel following renewed military exchanges between the U.S. and Iran, raising the risks of further disrupting transportation of oil and gas through the Strait of Hormuz.
Japan's core machinery orders, which exclude volatile sectors such as ships and electric utilities, dropped 12.4% from the previous month to 962 billion yen in May, reversing an 8.7% gain in the previous month.
On an annual basis, orders decreased 1.5%, swinging from April's 15.6% rise and falling at the fastest pace since December 2025, said the Cabinet Office.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.5% to 68,751.51, and the broader TOPIX advanced 1.2% to 4,088.12.
Technology and AI-related stock led gainers in Tokyo on Wednesday.
Kioxia Holdings rose 5.8% to ¥73,100.0, Advantest Corp. increased 5.8% to ¥31,510.0, Tokyo Electron advanced 4.4% to ¥74,240.0, and Taiyo Yuden closed up 6.3% to ¥12,605.0.
Japan's Machinery Orders Remained Volatile In May, Tech Stocks Extended 2-Day Gain
Akira Ito
15 Jul, 2026
Tokyo
Japan's indexes extended their 2-day gain on Wednesday and overlooked escalating tensions in the Middle East.
The Nikkei 225 Stock Average increased 1.5%, the broader TOPIX advanced 1.2%, and the yen inched down to 162.16 against the U.S. dollar.
Stocks in Tokyo trading closed higher, tracking gains in overnight trading in New York driven by a leg up in advanced semiconductor and memory module makers.
Market sentiment improved after the softer-than-expected U.S. inflation reduced expectations of a near-term interest rate hike.
The annual pace of inflation eased to 3.5% in June from 4.2% in May as lower oil prices moderate energy inflation. On a monthly basis, consumer prices fell 0.4% from the previous month, marking the first monthly decline since 2020.
The Brent crude oil price rose 1% to $85.60 a barrel following renewed military exchanges between the U.S. and Iran, raising the risks of further disrupting transportation of oil and gas through the Strait of Hormuz.
Japan's core machinery orders, which exclude volatile sectors such as ships and electric utilities, dropped 12.4% from the previous month to 962 billion yen in May, reversing an 8.7% gain in the previous month.
On an annual basis, orders decreased 1.5%, swinging from April's 15.6% rise and falling at the fastest pace since December 2025, said the Cabinet Office.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.5% to 68,751.51, and the broader TOPIX advanced 1.2% to 4,088.12.
Technology and AI-related stock led gainers in Tokyo on Wednesday.
Kioxia Holdings rose 5.8% to ¥73,100.0, Advantest Corp. increased 5.8% to ¥31,510.0, Tokyo Electron advanced 4.4% to ¥74,240.0, and Taiyo Yuden closed up 6.3% to ¥12,605.0.
China's Second Quarter Economic Growth Slowed as Domestic Demand Faces Headwinds
Li Chen
15 Jul, 2026
Hong Kong
Investors turned cautious in Shanghai and Hong Kong amid mixed economic data and heightened geopolitical tensions in the Middle East.
The Hang Seng Index increased 1.5%, and the mainland-focused CSI 300 Index inched up a fraction, tracking gains in overnight trading in New York.
China's second-quarter GDP growth slowed to an annual rate of 4.3% from 5.0% in the first quarter, according to the National Bureau of Statistics.
The annual economic growth was the softest since the fourth quarter of 2022 as lingering property market weakness, subdued private investment, and weak domestic demand outweighed the sustained growth in AI-related and green-tech exports.
The latest reading came below the Politburo's target range between 4.5% and 5.0%, highlighting the uneven recovery, but the economy remained resilient with industrial output and corporate profits accelerating.
For the first half, the economy expanded at a solid pace of 4.7%, driven by resilient exports despite disruptions to commercial shipping and geopolitical tensions in the Middle East.
Retail sales increased 1.0% from a year in June, reversing a decline of 0.6% in May, the first fall since China lifted Covid-19 lockdowns at the end of 2022.
Industrial output growth accelerated to 5.3% in June from 4.5% in May, largely because of the sustained demand for AI-related and high-tech equipment.
However, fixed-asset investment dropped 5.7% in the year to June, compared to a decline of 4.1% recorded in the period to May. Property investment fell 18% in the first half compared to a decrease of 16.2% in the first five months, according to a separate report by the NBS.
China's urban jobless rate eased to a one-year low of 5.0% in June from 5.1% in May, as the growth in the service sector helped the overall jobless rate to trend lower.
China Indexes and Stocks
The Hang Seng Index increased 1.5% to 24,695.62, and the mainland-focused CSI 300 Index edged up 0.04% to 4,798.61.
Banks and financial services providers led the decliners in Hong Kong and Shanghai.
China Construction Bank decreased 0.6%, Bank of China fell 0.2%, China CITIC Bank edged up 0.7%, and HSBC gained 1.9%.
SMIC decreased 2.2% to HK $76.60; Hua Hong Grace Semiconductor fell 1.3% to HK $169.00. Eoptolink Technology declined 0.7% to ¥563.81, and Naura Technology Group eased 2.2% to ¥757.0.
China's Second Quarter Economic Growth Slowed as Domestic Demand Faces Headwinds
Li Chen
15 Jul, 2026
Hong Kong
Investors turned cautious in Shanghai and Hong Kong amid mixed economic data and heightened geopolitical tensions in the Middle East.
The Hang Seng Index increased 1.5%, and the mainland-focused CSI 300 Index inched up a fraction, tracking gains in overnight trading in New York.
China's second-quarter GDP growth slowed to an annual rate of 4.3% from 5.0% in the first quarter, according to the National Bureau of Statistics.
The annual economic growth was the softest since the fourth quarter of 2022 as lingering property market weakness, subdued private investment, and weak domestic demand outweighed the sustained growth in AI-related and green-tech exports.
The latest reading came below the Politburo's target range between 4.5% and 5.0%, highlighting the uneven recovery, but the economy remained resilient with industrial output and corporate profits accelerating.
For the first half, the economy expanded at a solid pace of 4.7%, driven by resilient exports despite disruptions to commercial shipping and geopolitical tensions in the Middle East.
Retail sales increased 1.0% from a year in June, reversing a decline of 0.6% in May, the first fall since China lifted Covid-19 lockdowns at the end of 2022.
Industrial output growth accelerated to 5.3% in June from 4.5% in May, largely because of the sustained demand for AI-related and high-tech equipment.
However, fixed-asset investment dropped 5.7% in the year to June, compared to a decline of 4.1% recorded in the period to May. Property investment fell 18% in the first half compared to a decrease of 16.2% in the first five months, according to a separate report by the NBS.
China's urban jobless rate eased to a one-year low of 5.0% in June from 5.1% in May, as the growth in the service sector helped the overall jobless rate to trend lower.
China Indexes and Stocks
The Hang Seng Index increased 1.5% to 24,695.62, and the mainland-focused CSI 300 Index edged up 0.04% to 4,798.61.
Banks and financial services providers led the decliners in Hong Kong and Shanghai.
China Construction Bank decreased 0.6%, Bank of China fell 0.2%, China CITIC Bank edged up 0.7%, and HSBC gained 1.9%.
SMIC decreased 2.2% to HK $76.60; Hua Hong Grace Semiconductor fell 1.3% to HK $169.00. Eoptolink Technology declined 0.7% to ¥563.81, and Naura Technology Group eased 2.2% to ¥757.0.
Major Banks Reported Strong Quarterly Results, IBM Weakness Weighed On Market Sentiment
Barry Adams
14 Jul, 2026
New York City
Wall Street indexes lacked direction in early trading on Tuesday, and investors reviewed the latest batch of earnings.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite edged up 0.1% as investors shifted their focus to the start of earnings season.
JPMorgan Chase and Wells Fargo were in focus after the two leading banks reported better-than-expected results in the second quarter.
Market sentiment was subdued amid escalating tensions in the Middle East, and the U.S. and Iran continued to exchange military strikes over the Strait of Hormuz.
The West Texas Intermediate crude oil price rose 3.5% to $80.94 a barrel, and the Brent crude oil price increased 4.7% to $87.25 a barrel as commercial shipping remained disrupted for the second consecutive week.
The dual blockade of the narrow passageway is forcing many shipping companies to avoid the shipping channel and seek alternative passage after the U.S. president proposed a flat fee of 20% for shipments passing through the Strait of Hormuz.
U.S. Movers
JPMorgan Chase decreased 2.6% to $326.0 despite the New York-based bank reporting better-than-expected second quarter results.
Revenue increased 15% to $57.4 billion from $44.9 billion, net income advanced 28% to $21.2 billion from $15.0 billion, and diluted earnings per share rose to $7.70 from $5.24 a year ago.
“Performance was strong across the firm, and revenue in each line of business hit a new record," said Chairman and CEO Jamie Dimon in a statement released to investors.
Average deposits increased 7%, average loans rose 10%, and debit and credit card sales volume advanced 10% from a year ago, respectively.
In the quarter, the bank booked $4.6 billion of net gains related to Visa shares, or $1.27 per share, and $1.0 billion of gains on certain equity investments, or 29 cents per share.
Bank of America edged down 0.5% to $59.20 after the company reported better-than-expected second quarter results.
Total revenue increased 15.3% to $31.6 billion from $27.4 billion, net income advanced 26.4% to $9.1 billion from $7.2 billion, and diluted earnings per share rose to $1.21 from 90 cents a year ago.
Higher interest rates supported the 9% jump in net interest income to $16.0 billion, and provision for credit losses decreased to $1.4 billion from $1.6 billion in the period a year ago.
The company returned $8.0 billion to shareholders, including $2.0 billion in dividends and $6.0 billion in common stock repurchases.
Wells Fargo decreased 1.6% to $86.27 despite the bank reporting strong results in the second quarter.
Total revenue increased 9% to $22.6 billion from $20.8 billion, net income advanced 16% to $6.4 billion from $5.5 billion, and diluted earnings per share rose to $2.0 from $1.60 a year ago.
Net interest income rose 5% and non-interest income advanced 13%, driving the total revenue higher by 9%.
Average loans increased to $1.03 trillion from $916.7 billion, average deposits advanced to $1.46 trillion from $1.33 trillion, and return on equity jumped to 15.0% from 12.8% a year ago.
Goldman Sachs Group jumped 1.4% to $1,060.0 after the financial service provider reported better-than-expected results in the second quarter.
Total net revenue increased 39% to $20.4 billion from $14.6 billion, net income advanced 84% to $6.4 billion from $3.5 billion, and diluted earnings per share soared 92% to $20.98 from $10.91 a year ago.
The annualized return on average common shareholders' equity was 23.5% for the second quarter of 2026 and 21.7% for the first half of 2026.
Book value per common share increased by 1.8% during the second quarter of 2026 and by 2.8% during the first half of 2026 to $367.67.
Major Banks Reported Strong Quarterly Results, IBM Weakness Weighed On Market Sentiment
Barry Adams
14 Jul, 2026
New York City
Wall Street indexes lacked direction in early trading on Tuesday, and investors reviewed the latest batch of earnings.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite edged up 0.1% as investors shifted their focus to the start of earnings season.
JPMorgan Chase and Wells Fargo were in focus after the two leading banks reported better-than-expected results in the second quarter.
Market sentiment was subdued amid escalating tensions in the Middle East, and the U.S. and Iran continued to exchange military strikes over the Strait of Hormuz.
The West Texas Intermediate crude oil price rose 3.5% to $80.94 a barrel, and the Brent crude oil price increased 4.7% to $87.25 a barrel as commercial shipping remained disrupted for the second consecutive week.
The dual blockade of the narrow passageway is forcing many shipping companies to avoid the shipping channel and seek alternative passage after the U.S. president proposed a flat fee of 20% for shipments passing through the Strait of Hormuz.
U.S. Movers
JPMorgan Chase decreased 2.6% to $326.0 despite the New York-based bank reporting better-than-expected second quarter results.
Revenue increased 15% to $57.4 billion from $44.9 billion, net income advanced 28% to $21.2 billion from $15.0 billion, and diluted earnings per share rose to $7.70 from $5.24 a year ago.
“Performance was strong across the firm, and revenue in each line of business hit a new record," said Chairman and CEO Jamie Dimon in a statement released to investors.
Average deposits increased 7%, average loans rose 10%, and debit and credit card sales volume advanced 10% from a year ago, respectively.
In the quarter, the bank booked $4.6 billion of net gains related to Visa shares, or $1.27 per share, and $1.0 billion of gains on certain equity investments, or 29 cents per share.
Bank of America edged down 0.5% to $59.20 after the company reported better-than-expected second quarter results.
Total revenue increased 15.3% to $31.6 billion from $27.4 billion, net income advanced 26.4% to $9.1 billion from $7.2 billion, and diluted earnings per share rose to $1.21 from 90 cents a year ago.
Higher interest rates supported the 9% jump in net interest income to $16.0 billion, and provision for credit losses decreased to $1.4 billion from $1.6 billion in the period a year ago.
The company returned $8.0 billion to shareholders, including $2.0 billion in dividends and $6.0 billion in common stock repurchases.
Wells Fargo decreased 1.6% to $86.27 despite the bank reporting strong results in the second quarter.
Total revenue increased 9% to $22.6 billion from $20.8 billion, net income advanced 16% to $6.4 billion from $5.5 billion, and diluted earnings per share rose to $2.0 from $1.60 a year ago.
Net interest income rose 5% and non-interest income advanced 13%, driving the total revenue higher by 9%.
Average loans increased to $1.03 trillion from $916.7 billion, average deposits advanced to $1.46 trillion from $1.33 trillion, and return on equity jumped to 15.0% from 12.8% a year ago.
Goldman Sachs Group jumped 1.4% to $1,060.0 after the financial service provider reported better-than-expected results in the second quarter.
Total net revenue increased 39% to $20.4 billion from $14.6 billion, net income advanced 84% to $6.4 billion from $3.5 billion, and diluted earnings per share soared 92% to $20.98 from $10.91 a year ago.
The annualized return on average common shareholders' equity was 23.5% for the second quarter of 2026 and 21.7% for the first half of 2026.
Book value per common share increased by 1.8% during the second quarter of 2026 and by 2.8% during the first half of 2026 to $367.67.
Japan's Indexes Eased to One-Month Low Amid Escalating Tensions in the Middle East
Akira Ito
14 Jul, 2026
Tokyo
Japan's stocks came under pressure amid escalating tensions in the Middle East and renewed skepticism over the AI trade.
The Nikkei 225 Stock Average decreased 0.5%, and the broader TOPIX edged higher by 0.3% as investors feared prolonged supply chain disruptions in the Strait of Hormuz.
The Brent crude oil price rose 1.8% to $84.59 a barrel as the U.S. and Iran reimposed their dual blockade in the narrow passageway used by several oil-producing Gulf nations.
The sharp sell-off in advanced chipmakers in overnight trading in New York also weighed on the market sentiment amid renewed worries that the current level of AI infrastructure investment is likely to end faster than previously expected.
Moreover, investors are worried that the latest run in AI-related stocks is way ahead of market fundamentals, and future corporate earnings are likely to level off or fall off sharply as hyperscalers cut their investment spending.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.5% to 66,919.40, and the broader TOPIX advanced 0.3% to 4,018.51.
Kioxia Holdings declined 3.3% to ¥64,870.0, Taiyo Yuden dropped 4.6% to ¥11,350.0, Murata Manufacturing decreased 4.4% to ¥8,665.0, and Fujikura Ltd. fell 6.4% to ¥4,695.0.