The Dow Jones Industrial Average closed down 0.6% on Monday as investors braced for a pivotal week of earnings season, with major technology companies poised to reveal their second-quarter results.
The S&P 500 fell 0.2% to 7,443.28, while the Nasdaq composite slipped less than 0.1% to 25,508.07, according to market data. All three indexes opened higher before fading through the session as traders assessed rising bond yields and geopolitical tensions in the Middle East.
The market’s caution reflected the stakes ahead. Earnings season intensifies this week, with Magnificent Seven members Alphabet and Tesla both reporting results after Wednesday’s closing bell. According to Forbes, the Magnificent Seven are expected to see a 31.1% earnings surge, significantly outpacing the broader market. Last week, the S&P 500 fell 1.5% amid concerns about artificial intelligence spending and rising memory chip costs.
Semiconductor and memory stocks recovered some ground Monday after last week’s sharp losses. Stocks like Nvidia and Sandisk steadied as investors bought the dip, though the broader market felt pressure from climbing bond yields, which continued to rise alongside oil prices, according to Investopedia’s market coverage.
Oil prices climbed after President Donald Trump said Iran “will pay” for the deaths of American soldiers killed in weekend strikes. West Texas Intermediate futures rose 0.7% to just above $83 a barrel, while Brent crude futures advanced 1% to around $89 a barrel.
The week ahead will test whether earnings can justify the valuations that have driven the Dow to record highs earlier in July. Investopedia noted that earnings season is expected to reveal clues about whether major technology companies can recoup their enormous investments in artificial intelligence infrastructure, a concern that rattled investors late last week when a Chinese startup released an advanced AI model.
Sources
- Yakima Herald-Republic — Confirmed Dow dropped 0.6%, S&P 500 fell 0.2%, Nasdaq fell less than 0.1% on July 20, 2026, with context on AI stocks and bond yields
- Investopedia — Provided live market coverage, earnings season details, Magnificent Seven reporting dates, oil price movements, and geopolitical context
- Forbes — Reported Magnificent Seven expected 31.1% earnings surge and S&P 500 weekly decline of 1.5%
