FOMC Minutes Put Fed Policy Back in Focus 07/10/2026
Market Wrap
U.S. stocks advanced Tuesday, extending their winning streak as strength in semiconductor shares helped push the S&P 500 above 7,800 for the first time.
The S&P 500 gained 0.58%, marking its fourth consecutive advance, while the Dow Jones Industrial Average rose 0.49% and the Nasdaq Composite added 0.45%.
Chipmakers were among the session's strongest performers. Marvell Technology (MRVL) jumped 5.8% after raising its revenue outlook, while Advanced Micro Devices (AMD) gained 2.8% after Citi lifted its price target on expectations for stronger CPU demand.
Oil prices ended the session little changed, with Brent crude settling 0.26% higher at $100.58 a barrel and West Texas Intermediate nearly flat at $89.44. Crude moved higher Wednesday morning as renewed concerns over Houthi attacks on Saudi Arabia outweighed signs of recovering supply.
Treasury yields remain a key focus. The 10-year yield traded around 5.29% after reaching its highest level since 2002 earlier in the week.
Attention now turns to the minutes from the Federal Reserve's September meeting, due Wednesday, for fresh insight into policymakers' decision to raise rates and the outlook for further tightening.
U.S. Trade Deficit Widens as AI Imports Surge
The U.S. trade deficit widened sharply in August as imports surged, driven partly by spending tied to the artificial-intelligence build-out and shifts around tariffs.
Imports climbed 4.3%, pushing the trade gap up 13.7% from July to $105.6 billion, above the $102 billion expected by economists. It was the largest monthly deficit since March 2025.
Despite the monthly increase, the year-to-date deficit remained nearly 20% below the same period last year.
The widening gap could weigh on third-quarter economic growth. Goldman Sachs lowered its GDP tracking estimate to 3.1%, while the Atlanta Fed's GDPNow estimate slipped to 3.7%.
Still, economists noted that stronger imports can also reflect resilient domestic demand rather than underlying economic weakness, particularly as businesses continue investing heavily in AI-related infrastructure.
Stocks on the Move
- Constellation Energy (CEG), Alphabet (GOOGL): Constellation Energy jumped more than 6% while Alphabet gained about 0.5% after Google announced a major long-term power agreement tied to new nuclear capacity. The deal is expected to support more than $4.3 billion in new Constellation investment.
- Option Care Health (OPCH), McKesson (MCK): Option Care surged more than 20% following a report that McKesson and private-equity firm Clayton Dubilier & Rice are in advanced talks to acquire the infusion-services provider in a deal valued at more than $5 billion. McKesson gained 1.5%.
- Lennar (LEN), Berkshire Hathaway (BRK.B): Lennar gained 1.5% after Berkshire Hathaway disclosed the purchase of roughly 2.4 million shares of the homebuilder. Berkshire shares were little changed.
- NeoGenomics (NEO): Shares rose 5% after the company announced a leadership transition and preliminary third-quarter revenue of $209 million, above the $205.9 million consensus estimate.
Watchlist: CEG, STX, AMD, MU, XOM, MSTR, SPCX, CVX, META, MSFT, RKLB, TSLA
Key Economic Events Today
Economic Data (EST)
- 10:30 AM — USD Crude Oil Inventories
- 01:01 PM — USD 10-y Bond Auction
- 02:00 PM — USD FOMC Meeting Minutes
- 03:00 PM — USD Consumer Credit
Earnings
After Market Close: Levi Strauss (LEVI), Applied Digital Corp. (APLD)
