CNBC — 2026-07-26#

Lead Story#

Oil prices plunged nearly 5% as Iran signaled it would halt attacks if the U.S. maintains its pause, delivering a geopolitical de-escalation just as Wall Street braces for a critical week of megacap tech earnings. The easing of energy prices may alleviate some inflation fears as the Federal Reserve heads into its highly anticipated Wednesday policy meeting.

Markets & Economics#

Following consecutive weekly declines for the S&P 500 and Nasdaq, U.S. stock futures rallied Sunday night amid the easing Middle East tensions. International benchmark Brent crude fell to around $92 a barrel, while U.S. West Texas Intermediate dropped to roughly $85, after reports that the U.S. and Iran are pausing hostilities. The dip in energy costs arrives ahead of the Federal Reserve’s Wednesday interest rate decision and Thursday’s critical personal consumption expenditures (PCE) price index release. While a September rate hike remains the consensus, markets are pricing in a slight possibility of a quarter-point hike this week, as the Fed weighs war-driven inflation pressures against recent signs of economic softening.

Business & Earnings#

It is the busiest week of the earnings season with 158 S&P 500 companies reporting, headlined by technology heavyweights Apple, Amazon, Meta Platforms, and Microsoft. Investors are demanding justification for massive artificial intelligence capital expenditures following Alphabet’s poorly received capex forecast last week. In retail news, fast-fashion giant Shein revealed a net income of $2.064 billion for 2025 in a draft prospectus ahead of its anticipated Hong Kong initial public offering. Meanwhile, major chocolate producers like Lindt, Barry Callebaut, and Nestlé report that despite recent drops in cocoa futures, high chocolate prices will persist as they innovate premium formats and increase influencer marketing to win back core consumers.

Investing & Commentary#

Industrial stocks are rivaling tech valuations, with the S&P 500 industrials sector trading at a price-to-earnings ratio above 30 as companies capitalize on the massive data center and power grid buildout. Jim Cramer notes that the recent tech selloff signifies the market losing patience with massive AI spending that lacks immediate returns, suggesting investors tilt toward “old tech” like Intel that will benefit from AI agents and robotics. In the retail space, analysts see upside for Tapestry, Capri Holdings, and Ralph Lauren as they successfully elevate their outlet stores to attract aspirational luxury shoppers with full-price, made-for-factory apparel. Wall Street pros are also highlighting long-term growth potential in CrowdStrike, AST SpaceMobile, and Broadcom despite ongoing market volatility.

Also Worth Watching#

• 100 days until midterm election: DCCC Chair DelBene says Democrats have the momentum: With 100 days until the midterm elections, Democrats are leaning into a cost-of-living message, though they face challenges from low favorability ratings and a fundraising disadvantage.
• Ukraine strikes Iranian vessels in Caspian Sea, Tehran accuses Kyiv of ‘hostile and criminal act’: The Middle East and Eastern European conflicts threatened to overlap as Ukraine launched long-range strikes against Iranian commercial vessels allegedly used for Russian military cargo shipments.
• New UK Prime Minister Burnham says he would be prepared to call out Trump: U.K. Prime Minister Andy Burnham described a recent call with U.S. President Donald Trump as “warm” but asserted he would prioritize British national interests when managing the trans-Atlantic relationship.
• Vehicle mows down crowd at Berlin Pride festival, killing one: German police have identified an Islamist suspect and launched a manhunt after a vehicle drove into a crowd at Berlin’s Christopher Street Day event, killing one and injuring 17.
• Wildfires threaten Bordeaux as France and Spain battle blazes: Massive wildfires exacerbated by extreme temperatures and climate change have forced the evacuation of hundreds of thousands across France and Spain, with flames advancing toward the French regional capital of Bordeaux.