Wall Street finished mixed on Friday, July 24, 2026, as investors balanced reports of potential peace negotiations with threats of escalated military action in the Middle East. The Dow Jones Industrial Average gained 235.60 points, or 0.46%, to settle at 51,947.25, bolstered by a 3.5% jump in Apple. Conversely, the Nasdaq Composite dropped 0.64% to end at 24,975.82, while the S&P 500 added just 0.05% to close at 7,411.98.
Military Escalation and Diplomatic Efforts
Offsetting these threats, CNBC reported that Pakistan is considering a path toward establishing new peace negotiations between the U.S. and Iran, a push reportedly initiated by China. However, Pakistani sources noted that obstacles to these discussions remain high.
Oil Market Volatility and Economic Risks
Energy prices retreated on Friday after climbing earlier in the week. Brent crude futures, which topped $100 per barrel for the first time since late May, fell nearly 4% to settle at $96.78. U.S. West Texas Intermediate (WTI) futures dropped 3% to settle at $89.31 a barrel. Theodore Bunzel, head of geopolitical advisory at Lazard Asset Management, warned in a report that if the Strait of Hormuz remains closed and escalation continues, the impact will hit an energy market with less resilience than it had in the spring, as strategic reserves in the U.S. have been weakened.
The economic stakes include potential inflationary pressure. Bill Northey, investment director at U.S. Bank Asset Management Group, noted that Middle East instability has the potential to restrict hydrocarbon flows. Additionally, the Trump administration is ramping up a global trade war with new tariffs on dozens of nations. According to AP News, these tariffs impact nearly all U.S. imports, with costs typically passed to consumers. Currently, the national average for gasoline is $4.10 per gallon, per AAA.
Tech Slump and Fed Expectations
The Nasdaq’s decline was driven by sharp losses in chip stocks. Intel shares fell nearly 8%, reversing earlier gains despite second-quarter results that exceeded Wall Street expectations. Other declines included:
- Micron Technology: Down 7%
- Advanced Micro Devices: Down 3.3%
- Broadcom: Down 2.7%
- VanEck Semiconductor ETF (SMH): Pulled back 3%
Investors are also monitoring Federal Reserve Chair Kevin Warsh. While Northey believes rates will remain unchanged next week, CME FedWatch indicates a nearly 38% chance of a rate hike at the upcoming meeting. Wall Street is anticipating at least one rate increase by the end of the year to help cool stubborn inflation.
Weekly Market Performance
Despite Friday’s mixed results, the major indices ended the week in the red. The S&P 500 and Nasdaq booked back-to-back weekly losses, falling 0.6% and 2.1%, respectively. The Dow declined 0.4% over the period, marking its third straight losing week.
