Key Takeaways
- The S&P 500 ETF (SPY) fell 0.59% for the week while the Nasdaq 100 ETF (QQQ) dropped 1.60%, held back by megacap technology and consumer names.
- According to widely reported results, Alphabet posted June-quarter earnings that topped estimates but raised its 2026 capital-expenditure forecast, and its shares reportedly fell about 7% alongside a roughly 14% decline in Tesla, weighing on the communication services and consumer discretionary sectors.
- Crude oil, as measured by the WTI ETF (USO), surged 10.26% as escalating Middle East conflict, including reported attacks on tankers in the Red Sea, pressured energy markets.
- The energy sector ETF (XLE) led all sectors with a 3.36% weekly gain, while the consumer discretionary ETF (XLY) fell 5.22%.
- Bonds broadly declined, with the U.S. Aggregate Bond ETF (AGG) down 0.74% and the Long-Term Treasury ETF (TLT) off 1.50% as yields moved higher.
- Value factors outpaced growth, with the Value factor ETF (VLUE) up 2.86% versus a 2.05% decline in the Growth factor ETF (VUG).
Markets at a Glance
July 20 – July 24, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Jul 17, 2026) through the Jul 24, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
Weekly Recap
U.S. equities finished the week ending July 24, 2026 modestly lower, with leadership concentrated in cyclical and defensive corners of the market rather than in the megacap technology names that have driven much of the past year's gains. The S&P 500 ETF (SPY) declined 0.59%, the Dow Jones ETF (DIA) slipped 0.39%, and the Nasdaq 100 ETF (QQQ) fell 1.60%. Small caps also softened, with the Russell 2000 ETF (IWM) down 0.96%.
International markets held up comparatively better. The International Developed ETF (EFA) edged up 0.09% and the Emerging Markets ETF (EEM) gained 0.11%, while the MSCI World ETF (URTH) eased 0.47%. The dispersion across sectors and styles this week was notable, a reminder that headline index moves can mask meaningful divergence beneath the surface.
What Moved Markets This Week
Several developments shaped trading, according to widely reported accounts. Alphabet reported June-quarter earnings after the close on July 22, with results that surpassed consensus estimates on both earnings and revenue. Despite the beat, the company raised its 2026 capital-expenditure forecast to a range of $195 billion to $205 billion from $180 billion to $190 billion, and its shares reportedly fell about 7%. A roughly 14% decline in Tesla following its own results added to the pressure. These moves help explain the weakness in the communication services ETF (XLC), down 3.94%, and the consumer discretionary ETF (XLY), down 5.22%.
Energy markets were a second major theme. As reported by CNBC, U.S. equities fell on Thursday as oil prices surged amid escalating conflict in the Middle East, including claimed attacks by Yemen's Houthi group on two Saudi tankers in the Red Sea. Late in the week, stocks steadied after Reuters reported that Pakistan was considering a path toward new U.S.-Iran peace negotiations, with the S&P 500 ending near flat on Friday even as chip stocks weighed. On the labor front, initial jobless claims for the week ending July 18 came in at 187,000, a decrease of 22,000 from the prior week's revised level, with the four-week moving average at 207,500.
Equities and Sectors
Sector performance was sharply divided. The energy ETF (XLE) led with a 3.36% gain, consistent with the surge in crude prices, followed by the utilities ETF (XLU) at 2.44%, the industrials ETF (XLI) at 1.79%, and the materials ETF (XLB) at 1.42%. The healthcare ETF (XLV) rose 0.91% and the real estate ETF (XLRE) added 1.17%.
On the other side, the consumer discretionary ETF (XLY) fell 5.22% and the communication services ETF (XLC) dropped 3.94%, the two weakest sectors in the data, reflecting the earnings-driven declines in several large constituents. The consumer staples ETF (XLP) slipped 1.27%. The technology ETF (XLK) managed a slim 0.17% gain despite the pressure on chip-related names.
Among country markets, Brazil (EWZ) rose 1.45%, Japan (EWJ) gained 0.81%, and China (MCHI) added 0.72%, while India (INDA) fell 1.78% and Switzerland (EWL) declined 1.73%.
Fixed Income and Commodities
Bond prices declined broadly as yields rose. The U.S. Aggregate Bond ETF (AGG) fell 0.74%, the Intermediate Treasury ETF (IEF) declined 0.86%, and the Long-Term Treasury ETF (TLT) dropped 1.50%. Investment-grade corporates (LQD) fell 1.23%, while high-yield bonds (HYG) held up better at a 0.55% decline. Short-term bonds (SHY) were nearly flat at down 0.17%, illustrating how longer-duration holdings tend to move more when rates shift.
Commodities were the standout category. The WTI crude oil ETF (USO) jumped 10.26% on the week and is up 28.59% over the past month. Silver (SLV) climbed 3.60% and the broad commodities ETF (DJP) rose 2.80%, while gold (GLD) added 0.96%. REITs (VNQ) gained 0.81%.
Factors and Style
Factor strategies, which group stocks by shared characteristics rather than by sector, showed a clear tilt toward value this week. The Value factor ETF (VLUE), which favors stocks trading at lower valuations, rose 2.86%, while the Growth factor ETF (VUG) fell 2.05%. The Momentum factor ETF (MTUM), which emphasizes recent price leaders, gained 1.47%, and the High Dividend ETF (VYM) and Dividend Growth ETF (SCHD) advanced 1.32% and 1.12% respectively. Low Volatility (USMV) added 0.36%, Quality (QUAL) eased 0.46%, and Equal Weight (RSP) was roughly flat at 0.10%.
The style box told a consistent story. Large Value (IWD) rose 0.09% and Mid Value (IWS) gained 0.20%, while Large Growth (IWF) fell 1.42% and Small Growth (IWO) dropped 1.68%. The gap between value and growth was one of the week's defining features, with the spread widest among large-cap names.
What This Means for Long-Term Investors
This week illustrated how quickly leadership can rotate: energy, utilities, and value stocks advanced even as megacap growth and consumer discretionary names pulled the headline indices lower, and bonds declined alongside stocks. For diversified long-term investors, that kind of dispersion is a practical reminder that different asset classes and factors rarely move in lockstep, and that a portfolio spread across sectors, styles, geographies, and fixed income can cushion the impact when any single area, such as growth-oriented technology, comes under pressure in a given week.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (July 17, 2026) through the July 24, 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.