Market Report, 2026-07-14

Today, the market turned around from yesterday’s action after the inflation reading came in cooler than expected. For the first time in years, the consumer price index declined, a welcome development that the market embraced by pricing in a lower likelihood of multiple interest rate hikes in the near future while pushing broader asset prices higher.

All major U.S. stock indices ended the day in the green. While the Dow rose by just 10 points to 52,508, the NASDAQ gained 0.9% to 26,107, and the S&P 500 rose 0.38% to 7,544. The technology sector led today’s rally, with chip stocks lifting both the market and the sector. Healthcare and consumer staples ended the day more than 1% lower. In conclusion, today’s stock market action was largely a rotation in the opposite direction from yesterday.

The fixed income market saw a significant decline in short-term interest rates, while investors remained skeptical about longer-term risks. The 2-year Treasury yield, a benchmark that is more sensitive to near-term interest rate expectations, declined by 7 basis points to 4.19%; the 5-year Treasury yield declined by 5 basis points to 4.32%; and the 10-year yield slid by 2 basis points to 4.59%. Gold also rallied to well above the $4,000 mark.

While the inflation reading came in much lower than expected, the market is not entirely relieved, as new developments around the Strait of Hormuz have caused oil prices to rise again. Although prices are not as high as they were earlier in the year, the current oil price could push inflation readings back up if sustained.

Tomorrow, Adams Wealth Advisors will be watching for another inflation reading focused on prices received by producers, and we will be back with more updates.