US Stocks Slip Ahead of CPI and Warsh as IBM Sinks: Markets Wrap

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July 14, 2026 - 13:20

5 minutes

(Bloomberg) — US stocks slipped as traders refrained from taking on risk on a busy day that kicked off with Wall Street earnings. Testimony from Federal Reserve Chair Kevin Warsh and inflation data are due later.S&P 500 futures fell 0.1%. Technology stocks got a lift, with South Korea’s memory giants rebounding and Nasdaq 100 contracts rising 0.5%. Brent crude climbed above $86 a barrel to the highest level in a month as the US and Iran grew increasingly hostile over the status of the Strait of Hormuz. International Business Machines Co. slumped in premarket trading on a revenue miss.Higher crude prices kept bets on a July US interest rate increase in place, with swap markets signaling a 40% chance of a hike when the Federal Reserve meets later this month. The yield on two-year UK gilts hit the highest level since May. Treasuries wavered and the dollar fell.The event-filled calendar began with a mixed reaction to JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co.’s earning. Citigroup Inc. and Goldman Sachs Group Inc. are also due to report before the US market opens.June consumer price data is expected to show some relief after inflation accelerated rapidly from March through May. Warsh is scheduled to testify before Congress hours later.“Geopolitics on the margin is a negative, but the oil price has not spiked dramatically,” said Richard Flax, chief investment officer at Moneyfarm. “I expect Warsh will give a sort of data-driven speech rather than say too much about forward guidance. For us, it’s more about the inflation data.”In Europe, Ericsson AB’s shares fell as much as 10% after warning that margins in its main networks business will come under pressure. The Stoxx 600 slid 0.5%, dragged down by the travel and leisure sector, alongside weakness in media and retail shares.Money markets see at least one Bank of England and one European Central Bank rate hike this year, with around an 80% chance of a second by December.In a sign of confidence that the artificial-intelligence buildout will keep on fueling demand for chips, people familiar said Samsung Electronics Co. is exploring a potential offering of American depositary receipts. Semiconductor stocks bounced in early US trading after Monday’s rout.“This suggests that the Nasdaq could break its short-term negative correlation with the oil price, and rise alongside energy prices if this continues,” wrote Kathleen Brooks, research director at XTB.While economists surveyed by Bloomberg expect the consumer price index to notch its first monthly decline since the onset of the pandemic in 2020, the trajectory could reverse if the current bump in crude is sustained. The annual reading is expected to remain far above the Fed’s target of 2%.In an escalation of the standoff between the US and Iran over the Strait of Hormuz, President Donald Trump reinstated the blockade of Iranian ships transiting the waterway and demanded a 20% reimbursement for all other cargo. US forces also completed another round of strikes against the Islamic Republic.“We know the market can sustain far higher oil prices and US stocks keep rising,” said Alpesh Patel, managing partner at RootBridge Capital. “The only thing that matters is any indication rates are going to rise.”Corporate News:JPMorgan Chase & Co. reported its highest quarterly profit ever as stock traders blew past analysts’ estimates and a long-held Visa Inc. stake paid off to the tune of $4.6 billion. Wells Fargo & Co. reported second-quarter earnings that beat Wall Street estimates on higher fees from wealth management and investment banking. SLB, the world’s largest oil field service provider, has agreed to partner with Liberty Energy Inc. to provide modular parts and power for data centers. Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 7:18 a.m. New York time Nasdaq 100 futures rose 0.5% Futures on the Dow Jones Industrial Average fell 0.9% The Stoxx Europe 600 fell 0.5% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1394 The British pound rose 0.2% to $1.3373 The Japanese yen rose 0.1% to 162.25 per dollar CryptocurrenciesBitcoin rose 0.9% to $62,717.22 Ether rose 1.7% to $1,795.7 BondsThe yield on 10-year Treasuries was little changed at 4.62% Germany’s 10-year yield advanced one basis point to 3.12% Britain’s 10-year yield advanced four basis points to 5.01% CommoditiesWest Texas Intermediate crude rose 3% to $80.48 a barrel Spot gold rose 0.5% to $4,022.62 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from James Hirai.©2026 Bloomberg L.P.