Market Summary - July 14, 2026

Overview

Wall Street's major indices are experiencing gains following weaker-than-expected U.S. inflation data, which has alleviated concerns regarding a near-term Federal Reserve rate hike. The Dow Jones Industrial Average has risen by 0.2%, buoyed by strong performance from Goldman Sachs, although it faces pressure from a significant sell-off in IBM shares.

Key Market Movements

• Dow Jones: Up 0.2%, supported by Goldman Sachs.
• Nasdaq 100: Gains of 1%, but software stocks are underperforming.
• IBM: Shares plummeted nearly 25% after a warning of weaker demand, marking its largest single-day decline since 1987.
• Oil Prices: WTI crude surpassed $80 per barrel, influenced by geopolitical tensions.

Inflation Data

The Consumer Price Index (CPI) for June fell by 0.4% month-over-month, surpassing expectations of a 0.2% decline. Yearly inflation slowed to 3.5%, below the anticipated 3.8%. This data has reduced the probability of a Federal Reserve rate hike in July to 17% from 42% the previous day, providing a temporary boost to equity markets.

Corporate Earnings Highlights

Positive Performers

• JPMorgan Chase: Reported earnings of $6.14 per share on $58.02 billion in revenue, exceeding expectations.
• Goldman Sachs: Shares rose over 5% after reporting earnings of $20.98 per share, significantly above the consensus estimate.
• Bank of America: Reported earnings of $1.21 per share, beating analyst expectations.

Negative Performers

• IBM: Down nearly 25% after lowering its revenue outlook due to reduced enterprise spending.
• Merck: Shares are under pressure despite a price target upgrade from BMO Capital.

Sector Performance

While the financial sector is showing strength, the software sector is facing significant challenges, particularly with IBM, Salesforce, and Microsoft experiencing declines. Semiconductor stocks, however, are rebounding, with the VanEck Semiconductor ETF up more than 2%.