Key Takeaways
- A selloff in chipmakers pushed a key semiconductor gauge into a bear market during its worst week since April 2025, weighing on technology stocks and the Nasdaq 100.
- Crude oil, as measured by the WTI ETF (USO), jumped 14.07% for the week as the U.S. and Iran traded attacks, according to widely reported coverage.
- Value and defensive segments diverged from growth: the Large Value ETF (IWD) rose 0.47% while the Large Growth ETF (IWF) fell 3.65%.
- Chip-exposed foreign markets fell hard, with the South Korea ETF (EWY) down 11.6% and the Taiwan ETF (EWT) down 8.34%.
- U.S. economic data was mixed, with retail sales up 0.2% in June and initial jobless claims falling to 208,000, per government releases.
- Bonds provided ballast, with the U.S. Aggregate Bond ETF (AGG) up 0.13% as equities declined.
Markets at a Glance
July 13 – July 17, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Jul 10, 2026) through the Jul 17, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
Weekly Recap
Broad U.S. equities declined over the week ending July 17, 2026, led lower by technology and growth-oriented segments. The S&P 500 ETF (SPY) fell 1.56% and the Russell 1000 ETF (IWB) fell 1.57%, while the technology-heavy Nasdaq 100 ETF (QQQ) dropped 4.16%. The Dow Jones ETF (DIA) held up better at down 0.95%, and the small-cap Russell 2000 ETF (IWM) declined just 0.64%.
The dispersion was wide beneath the surface. International developed markets, as measured by the EFA ETF, fell 0.97%, but the Emerging Markets ETF (EEM) dropped 5.4%, dragged down by chip-exposed Asian markets. Over the trailing year, results remain broadly positive: SPY is up 20.37% and QQQ is up 25.37%, a reminder of how a single week fits into a longer arc.
What Moved Markets This Week
A selloff in chipmakers dominated the week. As widely reported by Bloomberg, a key semiconductor gauge sank roughly 20% from a record and entered a bear market during its worst week since April 2025, jolted by a surprise breakthrough from a Chinese AI startup. That pressure was visible in the Technology sector ETF (XLK), which fell 5.49%, and in chip-heavy foreign markets such as the South Korea ETF (EWY), down 11.6%, and the Taiwan ETF (EWT), down 8.34%.
Communication Services softened as well, with the sector ETF (XLC) down 0.89%; according to TheStreet, a disappointing revenue forecast from a major streaming company contributed to Friday's declines. Energy was the standout on the other side. As reported by Bloomberg, oil jumped as the U.S. and Iran traded attacks during the week, and the WTI crude ETF (USO) surged 14.07% while the Energy sector ETF (XLE) rose 4.72%.
U.S. economic data was mixed. The Department of Commerce reported retail sales increased 0.2% in June, with May revised up to 1%. Initial jobless claims decreased by 8,000 to 208,000 for the week ended July 11, and the Philadelphia Fed manufacturing index for July came in at 41.1, up from 10.3, according to the releases summarized by Yahoo Finance. Housing was softer, with the National Association of Realtors reporting pending home sales fell 5.4% in June. On the earnings front, results from a large health insurer and a freight transport company beat consensus estimates, and those individual stocks rose on Thursday per the same coverage.
Sectors and Country Markets
Sector performance split clearly along defensive and cyclical lines. Beyond Energy's 4.72% gain, Real Estate (XLRE) rose 2.18%, Consumer Staples (XLP) added 1.28%, Financials (XLF) gained 0.95%, and Healthcare (XLV) edged up 0.16%. The declines were concentrated in growth-sensitive areas: Technology (XLK) fell 5.49%, Consumer Discretionary (XLY) fell 1.56%, and Industrials (XLI) fell 1.36%.
Among country markets, the chip-linked selloff was most acute in Japan (EWJ), down 4.27%, alongside the steep declines in South Korea and Taiwan noted above. Several markets posted gains, including Switzerland (EWL) up 0.41% and Mexico (EWW) up 0.33%. Over the trailing year the range remains striking, from the South Korea ETF (EWY) up 127.07% to the India ETF (INDA) down 11.49%, illustrating how widely regional outcomes can differ.
Fixed Income and Commodities
High-quality bonds provided a measure of stability as stocks fell. The U.S. Aggregate Bond ETF (AGG) rose 0.13%, the Intermediate Treasury ETF (IEF) gained 0.22%, and the Short-Term Bond ETF (SHY) added 0.13%. Long-Term Treasuries (TLT) were roughly flat at 0.06%, and the Investment Grade Corporate ETF (LQD) rose 0.09%. High Yield Bonds (HYG) slipped 0.08%.
Commodities were a tale of two stories. Energy drove the broad Commodities ETF (DJP) up 4.06%, while precious metals fell, with the Gold ETF (GLD) down 2.28% and the Silver ETF (SLV) down 5.88%. Real assets outside energy were mixed, as the REIT ETF (VNQ) climbed 2.77%.
Factor and Style Performance
Factor strategies, which sort stocks by characteristics rather than sector, reflected the week's rotation away from momentum and high beta. The Momentum ETF (MTUM), which tilts toward recent winners, fell 6.19%, and the High Beta ETF (SPHB), which holds the most market-sensitive names, dropped 5.71%. Defensive and income-oriented factors held up better: the Dividend Growth ETF (SCHD) rose 1.54%, Quality (QUAL) fell just 0.85%, Low Volatility (USMV) fell 1.17%, and High Dividend (VYM) fell 0.59%. Equal Weight (RSP), which reduces concentration in the largest stocks, declined only 0.45%, well ahead of the cap-weighted S&P 500.
The style box showed a clear value-over-growth tilt. Small Value (IWN) led at up 1.07%, followed by Large Value (IWD) at 0.47% and Mid Value (IWS) at 0.38%. Growth lagged across sizes, with Large Growth (IWF) down 3.65% and Mid Growth (IWP) down 3.45%. One nuance worth noting is that the Value factor ETF (VLUE) fell 3.11% even as the value style box rose, a reminder that different index construction methods can produce different results under the same label.
What This Means for Long-Term Investors
This week illustrated why diversification is measured across, not within, market segments: as the Nasdaq 100 ETF (QQQ) fell 4.16% and chip-heavy markets tumbled, energy rose sharply, value and defensive sectors gained, and high-quality bonds added modestly, so a broadly diversified portfolio would have experienced a far smaller move than any single hard-hit segment. Over the trailing year most of these same segments remain solidly positive, which is the context in which a single week of concentrated declines is best understood.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (July 10, 2026) through the July 17, 2026 close; month and year figures are anchored to the same ending close. Dates reflect actual trading sessions, so market holidays can shift them.
This commentary is provided by Rubric Advisors, a California-registered investment adviser, for informational and educational purposes only. It does not constitute investment, legal, or tax advice, is not a recommendation or offer to buy or sell any security, and should not be relied upon as the sole basis for an investment decision. Market segment performance is measured using exchange-traded fund (ETF) proxies, which reflect fund expenses and may differ from their underlying indices; figures are unaudited and drawn from third-party data believed reliable but not guaranteed. Past performance does not guarantee future results. All investing involves risk, including possible loss of principal. Options strategies are not suitable for all investors, and private market investments are available only to qualified clients.