Market Report, 2026-07-07

Today, the market turned around again, with major asset classes falling by a somewhat elevated magnitude. This has gradually become a more common theme in the market as the theses of both bulls and bears have started to collide. On the one hand, the bulls believe that AI is a generational technology that requires massive investment in infrastructure and will therefore stir up demand, even if the underlying monetization of AI appears to be subpar at the moment. On the other hand, the bears believe that, because of the lack of monetization, rapidly shifting supply-demand dynamics, and many behaviors associated with hyperscalers’ management teams as a result of incentives, chipmakers’ incredible profitability is not sustainable.

Technology stocks led today’s dip, while capital rotated into safer assets. Energy was the exception, as it was impacted by news of oil tankers being attacked in the Strait of Hormuz. The Dow Jones Industrial Average was minimally impacted, thanks to its low representation of chip stocks, having declined only 131 points to 52,925. The NASDAQ dipped 1.16% to 25,819. The S&P 500 edged down by 0.45% to 7,504. Gold also joined the decline.

The bond market was driven by changes in oil prices, which jumped by nearly 5% today after Iran struck those oil tankers as a means of reinforcing its claim that it has the right to control traffic flow in the Strait of Hormuz. Both the 5-year and 10-year U.S. benchmark yields rose by 7 basis points, to 4.28% and 4.55%, respectively.

Tomorrow, we will see the Federal Reserve’s June meeting minutes, and the market will try to decipher the potential paths of U.S. monetary policy. This is Adams Wealth Advisors, and thank you for listening.