Weekly Commentary (07/20/2026) - “Iran War Goes On”

Wall Street wrapped a volatile week in negative territory as investors worried over the Iran War peace deal unraveling, and increasing AI threats from China appeared to cause a sell-off in semiconductor stocks.
President Trump announced that the ceasefire with Tehran was “over.” Oil price immediately surged roughly 9% to over $82 a barrel. Higher for longer energy prices typically creates the worry that the Fed will continue their hawkish stance and may even raise interest rates.
Fortunately, U.S. consumer prices slowed considerably in June with the consumer price index (CPI) falling 0.4% from May, down from 0.5% in May largely due to a 5.7% decline in energy prices, as reported by the Bureau of Labor Statistics. The University of Michigan’s preliminary consumer sentiment survey for July showed improvement as gas prices dropped. June retail sales climbed 0.2% and were in line with estimates. The labor markets continue to show strength with applications for unemployment benefits for the week ended July 11 came in at 208,000 down from the prior week’s 216,000. Housing data was disappointing.  Pending home sales fell 5.4% in June from May and the average rate of a 30-year fixed rate mortgage increased to 6.55%. This is the highest rate in nearly a year, according to the National Board of Realtors. The yields on U.S. Treasuries across most maturities fell as cooler inflation data was reported.
Earnings reporting began on Tuesday with major banks topping revenue and earnings consensus and are expected to grow 22% this year, which is 13% higher than expected, according to FactSet.
This week there will be a slew of earnings announcements along with U.S. leading indicators, manufacturing PMIs, new home sales, and Durable-goods orders bring reported.
With the escalation of the Iran war, the pressure on energy prices, and the sector rotation within the market, we believe that staying patient, re-balancing asset allocation, and being diversified will help provide smoother returns going forward.
“Live in the sunshine. Swim in the sea. Drink in the wild air.”- Ralph Waldo Emerson

Sources Market data: J.P. Morgan Asset Management, Weekly Market Recap, July 20, 2026. Index returns, yields, key rates, and commodity prices as cited in the Weekly Data Center. All equity returns represent total return for stated period. Oil and Gold: Wall Street Journal Markets Digest, July 20, 2026. Economic data: MarketWatch.com. Charts and portfolio data: YCharts.com.
NDS Wealth Advisors believes these sources are reliable but cannot guarantee the accuracy or completeness of third-party data and assumes no liability for errors or omissions.
Disclosures This material is for informational and educational purposes only and should not be relied upon as investment, legal, or tax advice, or a recommendation of any particular security, strategy, or investment product. Any economic forecasts or market outlooks expressed herein are forward-looking statements, subject to change without notice, and may not materialize. Investors cannot invest directly in an index. Index returns do not reflect the deduction of fees, commissions, or expenses, which would reduce overall performance. Past performance does not guarantee future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. This material does not consider the investment objectives, financial situation, or unique needs of any individual investor. Consult your financial advisor before making any investment decisions.