Energy vs Tech: The most dangerous divergence in markets? 13/07/2026

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Market wrap:

• The benchmark rose 0.4% to 7,575.39, while the Nasdaq Composite added 0.3% to 26,281.61. The Dow Jones Industrial Average gained nearly 150 points, or 0.3%, to close at 52,637.01. Nvidia climbed around 4%, while Meta Platforms surged roughly 6%, extending its weekly advance to nearly 15%, its strongest performance since early 2024. The move followed renewed optimism around Meta’s artificial-intelligence strategy after Bank of America reiterated its buy rating and pointed to signs the company may be improving the cost efficiency of its AI operations. For the week, both the S&P 500 and Nasdaq gained more than 1%, while the Dow fell about 0.5%. South Korean chipmaker SK Hynix also made its US market debut Friday, opening at $170 on the Nasdaq and rising roughly 13%. 
• The new week began on a more cautious note, however, as stock futures moved lower Monday amid renewed Middle East concerns and ahead of a busy earnings calendar. JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and Wells Fargo are among the major banks due to report, alongside Netflix, Johnson & Johnson, and UnitedHealth. Expectations remain high, with analysts estimating second-quarter S&P 500 earnings grew by more than 23% from a year earlier, according to FactSet.

AI Earnings Take Center Stage

• While renewed tensions between the US and Iran have pushed oil back into focus, investors remain far more concerned with the upcoming earnings season and the sustainability of the AI investment boom. Second-quarter results kick off this week with major US banks, before shifting to technology heavyweights later in the month. Markets will be closely watching whether companies can justify lofty earnings expectations while continuing to fund massive AI infrastructure spending. The cost of the AI buildout has emerged as a growing concern. Analysts warn that higher-than-expected capital expenditures could pressure corporate profit margins, particularly if companies struggle to pass rising costs on to customers. Hardware, semiconductors and data-center infrastructure have been the biggest beneficiaries of the AI spending cycle, but investors are increasingly questioning how long that momentum can continue. 
• Those concerns resurfaced after Samsung Electronics' preliminary earnings disappointed investors despite strong year-over-year growth, sending the stock nearly 8% lower last week and raising fresh doubts about the durability of AI-related demand. While geopolitical risks remain on investors' radar, most strategists argue that earnings, inflation and interest rates will continue to be the primary drivers of markets in the months ahead. As long as corporate profits remain resilient, many believe equities can continue looking through geopolitical headlines.

Stocks on the move:
 

Marvell Technology (MRVL) and Intel (INTC): Both chipmakers fell about 3% following the Nasdaq debut of South Korean semiconductor company SK Hynix.

Seagate Technology (STX): Shares rose almost 2% after Wells Fargo upgraded the data-storage company to overweight from equal weight. The bank said the recent pullback created a more attractive entry point and raised its price target to $1,100, citing a potential path to more than $50 per share in earnings, alongside increased buybacks and dividends.

WD-40 Company (WDFC): Shares rallied 10% after the household and industrial lubricants maker reported adjusted third-quarter earnings of $2.33 per share, well above the $1.56 expected by analysts surveyed by FactSet. The company also raised its full-year outlook.

Delta Air Lines (DAL): Shares slipped more than 2% despite second-quarter results beating revenue and earnings expectations. CEO Ed Bastian said the pricing power created by higher jet-fuel costs earlier this year could persist even as oil prices decline. Delta shares remain up about 14% over the past month.

Watchlist: MU, SNDK, COIN, HOOD, SPCX, META, MSFT, TSLA

Key Economic Events Today:

EST time

05:25 am: USD FOMC Member Bowman Speaks
12:30 pm: USD FOMC Member Waller Speaks
02:00 pm: USD Federal Budget Balance


Earnings

No major earnings!


The TEFS Analyst team wishes you a successful day!