A line of cars at the Gulf Oil Station on the Massachusetts Turnpike near Boston on July 19. (Gene J. Puskar/AP/File)
key takeaways:
- Oil prices fell as the US and Iran avoided fighting while discussing a possible resumption of talks on an interim ceasefire agreement.
- The Fed is meeting this week, although rising inflation has dimmed hopes of an interest rate cut any time soon.
- Corporate earnings reports are shifting focus from a surge in spending on artificial intelligence to the sustainability of broader profits.
BANGKOK – Stocks around the world were mostly higher on July 27 and oil prices fell about 7% as the US and Iran avoided fighting while discussing a possible resumption of talks on an interim ceasefire agreement.
The Pentagon did not respond to questions about the pause in attacks on Iranian coastal areas and infrastructure after nearly two weeks of escalating fighting that began with Iran firing on ships trying to transit the Strait of Hormuz.
But markets reacted with relief. US futures surged early on July 27, and the price of a barrel of Brent crude, the international standard, fell 6.8% to $85.49.
US benchmark crude fell 7% to $83.06 a barrel.
“Oil’s sharp decline on Monday knocked a few dollars off the barrel. It loosened the geopolitical knot that had been tightening around equities, currencies, bonds and central banks for most of July,” Stephen Innes of SPI Asset Management said in a comment.
Shares of Chinese memory chip maker CXMT soared 466% as they began trading on the Technology Board of Shanghai. The company became China’s most valuable listed company with an estimated market capitalization of 3.3 trillion yuan (about $490 billion).
Oil prices have fallen significantly after both the US and Iran curbed new attacks, with the WSJ citing reduced arms embargoes as a possible catalyst – for now, WTI crude is down $4/bbl, or 5%, at $85, with Brent down 5% at $92. RBOB down 12c/gallon. Where we stand now – The national average may increase, it may not. – Patrick de Haan (@GasBuddyGuy) 26 July 2026
In early European trading, Germany’s DAX was up 1.6% at 25,497.42 and the CAC 40 in Paris was up 0.8% at 8,436.94. Britain’s FTSE 100 rose 0.5% to 10,784.00.
Futures for the S&P 500 and the Dow Jones Industrial Average were up 1%.
In Asian trading, Japan’s benchmark Nikkei 225 rose 0.5% to 64,931.19, while South Korea’s Kospi rose 1% to 6,755.75.
Hong Kong’s Hang Seng rose 1% to 25,207.18, while the Shanghai Composite Index rose 1.2% to 3,858.25.
In Australia, the S&P/ASX 200 rose 1.4% to 8,894.00.
Taiwan’s Taiex slipped 0.1% and India’s Sensex rose 1.1%.
On July 24, the S&P 500 barely budged, gaining less than 0.1% and falling for the second consecutive week for the first time since March.
The Dow industrials rose 0.5%. The Nasdaq Composite Index slipped 0.6%, led by sharp losses from giants such as Micron Technology, which dropped 7%, and Broadcom, which dropped 2.7%.
The recent surge in energy prices and new tariffs announced last week by US President Donald Trump’s administration could result in a surge in inflation, unsettling consumers and looming over the Federal Reserve’s interest rate policy.
The Fed is meeting this week, although rising inflation has dimmed hopes of an interest rate cut any time soon. Wall Street is leaning toward a potential rate hike to offset high prices.
Higher energy costs are taking up a larger share of household budgets, which are shifted toward more basic needs like gasoline. Nationally, the price of a gallon of gasoline is $4.11 per gallon, according to AAA. That’s still lower than this spring due to the escalating conflict in Iran, but about a dollar higher than this time last year.
Brad Gulick of Eaton Mobile Power Group discusses the hydraulic systems that power trucks. He addresses dump pump sizing and more. Tune in by going above or RoadSigns.ttnews.com.
“Oil is the fastest-growing tax in the global economy. When crude rises sharply, consumers feel it at the fuel pump, airlines and transportation companies feel it in their operating costs, manufacturers feel it in their logistics, and central banks start to worry that the initial supply shock will translate into broader inflation expectations,” Innes said.
Meanwhile, corporate earnings reports are shifting focus from a surge in spending on artificial intelligence to the sustainability of broader profits. Tech giants like Alphabet and Nvidia are spending heavily to expand AI capability and investors are increasingly questioning whether they’ll make profits to justify the massive stock prices that have pushed the market higher all year.
In other deals early on July 27, the US dollar fell to 163.56 JPY from 163.64 yen. The euro rose to $1.1399 from $1.1398.
