Tuesday, July 14, 2026

U.S. equities closed higher on Tuesday after a cooler-than-expected June CPI report showed a 0.4% monthly drop, bringing annual inflation down to 3.5% and easing Federal Reserve rate hike fears. The tech-heavy Nasdaq led the broader market, rising 0.90% to 26,107.008, while the S&P 500 added 0.38% to 7,543.59 and the Dow edged up 0.02% to 52,508.27. Cooling yields and retreating volatility—the VIX fell 3.85% to 16.5—sparked a "risk-on" tone that pushed the Russell 2000 up 0.39% to 2,964.764 and supported commodities, with Gold climbing 1.30% to 4,057.7 and WTI Crude rising 2.38% to 80 on persistent Middle East tensions.

Sectors in focus:

• Industrials & Aircraft: General Industrial Machinery led all groups, surging 4.39%, followed closely by Aircraft at +3.78%. The rally was fueled by a $10B Boeing 737 Max overhaul and a Supreme Court ruling striking down reciprocal tariffs, which triggered 81B in refunds.
• Technology: Computer Storage Devices climbed 3.43% as falling yields lifted AI and chip leaders like Nvidia and Micron. Conversely, IBM shares crashed 24% following a Q2 earnings warning tied to a client capex shift away from software and toward hardware.
• Healthcare: General Medical & Surgical Hospitals plunged 5.26%, dragging down adjacent surgical and medical instrument sectors (-3.40%). The sell-off was ignited by HCA Healthcare cutting its 2026 profit forecast due to rising uninsured patient costs and a shifting payer mix.

On the radar:

• July 15: June US Producer Price Index (PPI), the Fed Beige Book, and the Empire State Manufacturing Survey. Markets will also parse major earnings from ASML, Johnson & Johnson, and Morgan Stanley.
• July 16: US Retail Sales and Weekly Unemployment Claims.
• July 28-29: The highly anticipated FOMC Policy Meeting and interest rate decision.