Weekly Market Recap: Friday, July 17, 2026 — Market Analysis

Key Themes This Week

• •Major U.S. stock indexes reached new all-time highs this week as June inflation data came in softer than expected, reinforcing expectations for Federal Reserve rate cuts starting in September.
• •Small-cap stocks outperformed dramatically, with the Russell 2000 posting its best week in over two years as investors rotated into rate-sensitive sectors that historically benefit from lower borrowing costs.
• •Technology megacaps delivered mixed earnings results, with some companies beating expectations on AI-driven growth while others faced questions about the sustainability of elevated capital spending on artificial intelligence infrastructure.