This content was published on
July 10, 2026 - 17:00
4 minutes
(Bloomberg) — A rally that drove stocks to a striking distance of their record highs wavered ahead of the earnings season, with traders also parsing geopolitical developments as they get ready for SK Hynix Inc.’s debut.In the final stretch of a week of gains for equities, the S&P 500 fluctuated. While most of its firms rose, the semiconductor industry lost steam after a solid run. American depositary receipts of the giant South Korean memory chipmaker are indicated to open 21% above their offering price after raising $26.5 billion in the largest-ever US listing by a foreign company.Oil prices briefly rose when President Donald Trump said the US considers the ceasefire with Iran to be over. But crude resumed its drop as he added that talks with Tehran would continue, easing fears of a return to all-out war.“The muted stock market reaction to the re-escalation of Iran tensions this week is prime evidence that the market is looking past geopolitical tensions,” said Clark Bellin at Bellwether Wealth. “While the stock market is gearing up for another strong earnings season, expectations are higher.”The upcoming second-quarter results will be about justifying the premium valuations investors have already assigned to the companies, according to Kenny Polcari at SlateStone Wealth.“The street has priced in exceptional earnings growth, and now management teams have to prove those expectations were warranted,” he said.What’s really interesting this quarter, Polcari noted, is that we haven’t seen the usual wave of warnings. In fact, more S&P 500 companies have issued positive than negative guidance, which is a sharp departure from the historical pattern.“That tells me management teams are either genuinely confident or confident enough not to reset expectations ahead of reporting,” he said.Another aspect of the upcoming earnings season is that expectations are elevated, but “concentrated,” according to Nicole Inui at HSBC. Most of the expected earnings growth comes from a handful of sectors where earnings visibility is high, she said.“Despite lofty expectations, we are not worried,” Inui added.Corporate Highlights:Delta Air Lines Inc. reaffirmed its full-year profit guidance and said strong demand for premium, corporate and international travel helped offset the highest quarterly fuel expense in its history. Boeing Co. formally opened its fourth 737 Max assembly line near Seattle on Friday, as the US planemaker looks to cash in on its growing backlog, though output from the factory will initially be at a low rate. EasyJet Plc received an offer from private equity firm Apollo Global Management for 715 pence a share that beats a rival proposal from Castlelake LP, a surprise twist in the takeover saga that sets up a possible bidding war between the two US investment funds. Circle Internet Group Inc. received approval to start a national digital-currency trust bank to support its stablecoin business, widening its remit to include institutional custody services while consolidating oversight under a single federal trust charter. Some of the main moves in markets:StocksThe S&P 500 was little changed as of 11 a.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 was little changed The MSCI World Index was little changed Philadelphia Stock Exchange Semiconductor Index fell 1.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1422 The British pound was little changed at $1.3410 The Japanese yen rose 0.3% to 161.82 per dollar CryptocurrenciesBitcoin rose 0.9% to $63,862.85 Ether rose 2.1% to $1,783.61 BondsThe yield on 10-year Treasuries advanced one basis point to 4.56% Germany’s 10-year yield was little changed at 3.08% Britain’s 10-year yield was little changed at 4.90% CommoditiesWest Texas Intermediate crude fell 0.3% to $71.88 a barrel Spot gold fell 0.7% to $4,093.11 an ounce ©2026 Bloomberg L.P.
