HOTLINE
Hotline Archive
July 10, 2026
This is John Bonnanzio with a Fidelity Monitor & Insight Hotline update for Friday evening, July 10.
There are no model portfolio trades advised.
The U.S. equity market was choppy this week. But, for the most part, major stock gauges moved higher.
On Monday, the mood on Wall Street was largely upbeat, with gauges scoring new highs. But Tuesday saw a reversal as investors appeared to take profits and otherwise diversify – especially away from AI-related names. Chipmakers were hit especially hard even as Samsung reported record profits. In fact, one semiconductor gauge dropped nearly 5% on the day.
Wednesday saw a different kind of mood swing. Close to home, Fed commentary expressed inflation concerns regardless of where oil prices might stand in the second half of the year. That outlook seemed a bit prophetic as hostilities between the U.S. and Iran flared back up. As for the Strait of Hormuz, the UAE has already completed 50% of new pipeline bypassing it, and exports of LNG from the U.S. and Canada are up 18% since the war began, so as time goes on it stands to become less critical to the global economy. That may explain why oil markets are reacting less to each new unraveling of plans to re-establish fuel-tanker traffic.
On Thursday, equity gauges were up again led by chip stocks. As for today, market sentiment remained positive, helped by Meta which said it would produce a proprietary AI silicon chip to help cut its data-center costs.
Separately, SpaceX joined the Nasdaq 100 this week while Microsoft increased its previous layoff announcement to 4,800 in response to slow sales in its gaming group.
For the week through Friday’s close, the Dow Industrials slipped 0.4%. During the same period, the S&P 500 rose 1.3% and the Nasdaq Composite gained 1.7%. Small and mid-cap indexes were mixed with the Russell 2000 inching up 0.4% and the Russell Midcap slipping 0.3%.
Mideast fighting weighed on European share prices, but the more obvious hit to sentiment was instigated by President Trump, who was critical of NATO allies during a meeting in Ankara. Spain’s market fell nearly 3% that day, while European shares fell almost 2%. The Stoxx 600 ended the week off 1.1%; London’s FTSE 100 finished the week off 1.5%.
As for oil, a barrel of West Texas Intermediate rose 4.2% this week to $71.58 a barrel.
Turning to the bond market, inflation concerns and oil’s rise made fixed-income investors a bit nervous. With bond yields moving inversely to their price, the benchmark 10-year Treasury Note rose 7 basis points to 4.56%. As for the 30-year bond, its yield jumped 8 basis points to finish at 5.06%.
| Our model performance as of Friday's close is listed below: | ||
|---|---|---|
| Week | YTD | |
| S&P 500 | + 1.3% | + 11.3% |
| Barclays US Aggregate Bond | - 0.5% | + 0.1% |
| Income Model | + 0.3% | + 4.6% |
| G&I Model | + 0.4% | + 9.3% |
| Growth Model | + 0.6% | + 14.2% |
| Select System | + 0.9% | + 18.7% |
| Unique Opportunities Model | + 0.8% | + 12.9% |
The July newsletter was posted on our website Wednesday July 1. Due to a press problem, printing was delayed while repairs were being made, but the issues were mailed on Wednesday.
Our next regularly scheduled Hotline update is Friday evening July 17.
Fidelity Monitor & Insight's Hotline is updated on Friday evenings or whenever the Dow moves 1,000 points or more in either direction.