Market Summary - July 9, 2026

Author: Kathleen Brooks, Research Director UK

Oil Prices Retreat Amid Market Normalization

After a sharp rise on Wednesday, oil prices are retreating as the market adjusts to recent tensions in the Middle East. Brent crude has decreased by over 0.5%, trading around $77 per barrel. European stock markets are generally higher, although the FTSE 100 is lagging behind due to significant losses in AstraZeneca's stock.

Fragile Peace Deal

President Trump recently stated that the ceasefire with Iran is over, yet he also claimed that Iran is interested in negotiating a deal, a statement that remains unverified by Tehran. Following overnight attacks, including US strikes on Iran and Iranian missile launches against Bahrain and Kuwait, the situation remains tense. However, Qatar has urged both parties to seek a diplomatic resolution, suggesting that further escalation may be avoided for now.

Market Reactions

Despite the tensions, the market appears capable of absorbing the current situation. Reports of Iran's response to US strikes have halted the decline in oil prices. Additionally, bond yields in the UK have decreased, with the 2-year yield down by 6 basis points.

Chip Stocks Rally

In the midst of geopolitical tensions, US tech and chip stocks saw a rally on Wednesday. Notable gains included SanDisk (+6.7%), CoreWeave (+7.75%), and Broadcom (+5%). This shift indicates a rotation back into chip stocks as yields and oil prices fluctuated. Nasdaq futures are indicating a potential 0.8% gain, contrasting with the Dow Jones, which fell over 1% on Wednesday.

AstraZeneca's Impact on FTSE 100

The FTSE 100 is struggling, down 0.5%, primarily due to AstraZeneca's stock plummeting over 8% after a nerve disease drug failed to meet targets in a late-stage trial. Given that AstraZeneca constitutes approximately 8% of the FTSE 100, its decline significantly impacts the index's performance.

Federal Reserve Rate Hike Speculations

The latest FOMC minutes reveal a split within the committee regarding inflation and employment concerns. This balance may ease market fears, as the likelihood of a rate hike in the upcoming Fed meeting has dropped to 27%, which is positively influencing risk sentiment.

Looking Ahead

As the day progresses, chip stocks are expected to continue their rally, with SanDisk and Nvidia showing promising signs. However, the focus will also be on initial jobless claims data, which could provide insights into the US labor market's strength. The dollar is generally weaker today, influenced by falling oil prices and yields, which may persist if jobless claims indicate a softer labor market.