Wall Street indexes finished mixed on Friday, July 24, 2026, as crude oil prices fell for the first time in a week.
Investors spent Friday balancing a volatile cocktail of geopolitical threats and new trade barriers. While the Dow Jones Industrial Average gained 235.60 points to settle at 51,947.25, the broader market remained fragile. The S&P 500 barely moved, adding 0.05% to close at 7,411.98, while the tech-heavy Nasdaq Composite dropped 0.64% to 24,975.82.
Iran Conflict and the $100 Oil Threshold
Energy markets have been the primary driver of volatility this week. Brent crude, the international benchmark, fell 3.9% to $96.78 on Friday, marking the first decline in a week. The price had crossed the $100-a-barrel threshold on Thursday for the first time since late May, a sharp climb from the $72 per barrel range seen before the Iran war began in late February.
The pullback came as reports surfaced that Pakistan, encouraged by China, is pushing for new peace negotiations between the U.S. and Iran. However, the relief was tempered by aggressive rhetoric from the White House. President Donald Trump told Axios he is considering a massive attack
that would be bigger than ever before
, stating that Iran has not received enough pain yet
.
The risk is compounded by a lack of reserves. According to reports, U.S. strategic reserves have been weakened, leaving the market with less resilience than it possessed in the spring.
Semiconductor Sell-off and AI Spending Fears
The Nasdaq’s decline was largely a result of a sharp retreat in chip stocks. Other major players followed suit: Micron Technology fell 7%, Broadcom dropped 2.7%, and Advanced Micro Devices declined 3.3%.
The impact was felt across specialized funds. The Roundhill Memory ETF (DRAM) plunged 8.5%, while the iShares Semiconductor ETF (SOXX) fell about 4.5%.
New Global Tariffs and Inflation Pressure
The combination of these tariffs and rising energy costs is fueling fears of “hotter” inflation.
Federal Reserve and the Interest Rate Outlook
The Federal Reserve is meeting next week, and the market’s expectations have shifted significantly toward a rate hike to cool inflation. According to the CME FedWatch tool, traders now see a 36% likelihood of a rate hike at next week’s meeting, up from 13% a week ago. Looking further out, there is an 80% chance of at least a quarter-percentage-point hike in September.
Bond yields provided a small amount of relief on Friday.
Corporate Earnings and Market Sentiment
While many companies continue to show growth, the sustainability of those profits is being questioned.
The divergence between rising earnings forecasts and slipping stock prices suggests a potential slowdown.
| Index / Asset | Friday Performance | Weekly Change |
|---|---|---|
| S&P 500 | +0.05% to 0.1% | -0.6% |
| Nasdaq Composite | -0.6% to -0.64% | -2.1% |
| Dow Jones Industrial Average | +0.46% to 0.5% | -0.4% |
| Brent Crude Oil | -3.5% to -3.9% | +9.9% |
| WTI Crude Oil | -3.1% | +8.3% |
Investors now face a weekend of uncertainty as they wait to see if the U.S. escalates attacks on Iran or if the proposed peace talks initiated by China and Pakistan gain traction. The immediate focus for Wall Street remains the Federal Reserve’s policy decision next week.
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