Market Report, 2026-07-31

Although some market turbulence occurred earlier this week following statements from the Federal Reserve, earnings reports from two tech giants, Microsoft and Amazon, reassured investors that profitability related to AI and AI-related infrastructure has not yet cooled. While the stock market looked slightly shaky for a few days, strong rebounds near the end of the week allowed all major indices to finish higher.

The Dow rose 1.04% compared with last Friday. The Nasdaq gained nearly 0.6%, while the S&P 500 rose 1.06% for the week. Consumer discretionary stocks posted a weekly gain of more than 6%, largely because of Amazon’s strong rally on Friday. On the other side of the market, utilities posted a 4.2% loss because of significantly higher interest rates.

The Treasury market experienced some turmoil this week because of a combination of the Federal Reserve’s decision to provide less forward guidance and possible market disapproval of its decision to keep interest rates unchanged, potentially calling the bluff on the Warsh Fed’s attempt to restore credibility. The 5-year Treasury yield was affected the least but nevertheless ended the week at the same level as last Friday, near its highest level since late 2007. The 10-year yield rose 4 basis points to 4.72%, its highest level since July 2007. The 30-year yield edged up 10 basis points to 5.26%, its highest level since early 2004. Gold declined and was on the verge of falling below the 4,100 mark again.

This week’s economic data largely reflected the decline in oil prices, with the inflation gauge turning negative. However, the bond market has so far expressed skepticism about whether the current inflation readings will develop into an established trend.

Next week will bring plenty of economic data, including the jobs report. Adams Wealth Advisors will be back with further updates.