Your Capital Markets Snapshot: US Equity Markets Posted Gains for a Second Consecutive Week

Courtesy of Allen Davis, CFP®

US equity markets posted gains for a second consecutive week, navigating a volatile backdrop shaped by renewed US-Iran military tensions. A resurgence in technology stocks, particularly semiconductors, helped drive broad index performance higher despite mid-week turbulence. Treasury yields climbed across maturities, as the resumption of Middle East hostilities pushed oil prices higher and stoked concerns that energy-driven inflation could prove more persistent than previously expected. WTI crude oil swung sharply, initially falling to five-month lows on Saudi Arabia's historic price cuts before surging on US-Iran escalation. Weekly jobless claims came in just below expectations, signaling continued labor market resilience. The ISM Services Index, a measure of business activity in the U.S. services sector, held at 54 percent (June 2026), in line with expectations, suggesting the broader economy remains on solid footing even as cost pressures persist. Last week's market performance reflects an environment where solid economic fundamentals and AI-driven optimism balanced against geopolitical uncertainty, sticky inflation, and a growing possibility the Federal Reserve may need to keep interest rates elevated for longer.