The Wednesday Weekly
Financial Market Insight July 8th, 2026
Weekly Market Insight
Welcome to our weekly market update. This newsletter is designed to provide you with current market data, investment insights, and educational information about market trends and strategies. The content herein represents our observations and analysis of market conditions and is intended for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation for any specific security or strategy.
Major Market Indexes
Closing Price as of 07/07/2026
The Strong Tower Difference
Ask Yourself…
What do you own?
Why do you own what you own?
Do you know what you’re truly paying for your investment management and advice?
If you can’t answer these three questions, watch this video
Items of Interest
Second Quarter 2026 Market Summary
The second quarter of 2026 continued steady for the U.S. equities despite ongoing concerns surrounding interest rates, inflation, and geopolitical tensions. Markets experienced periods of volatility but ultimately finished the quarter with strong gains, led once again by technology and AI-related companies.
U.S. stocks rebounded sharply from their first-quarter decline, with the S&P 500 gaining nearly 15% in the second quarter, its strongest quarterly performance since 2020. Technology stocks led the rally, helping the Nasdaq-100 surge more than 27% during the quarter.
International stocks also posted solid gains in the second quarter, with emerging markets outperforming developed markets. The MSCI Emerging Markets Index rose more than 20%, compared with nearly 10% for the MSCI EAFE Index, led by a strong rally in South Korean equities.
Commodities struggled during the second quarter, with the S&P GSCI Commodity Index falling nearly 17%. Crude oil dropped more than 30%, reversing most of its gains from the early Iran conflict and weighing on energy stocks. Precious metals also declined, with silver falling over 20% and gold down more than 13%, erasing much of their strong gains from earlier in the year.
Interest rates moved higher during the second quarter as inflation and energy price concerns led investors to reassess Federal Reserve policy. Although falling energy prices eased some of those worries, markets continue to anticipate the possibility of another interest rate increase before the end of 2026.
Market Themes
1. AI and Technology Continued to Lead
Technology remained the strongest sector of the market.
Artificial intelligence spending continued at a rapid pace, benefiting semiconductors, software, cloud computing, and infrastructure providers.
While semiconductor stocks experienced periods of sharp pullbacks, software and AI infrastructure names maintained leadership.
2. Broader Market Participation Improved
Market leadership expanded beyond the “Magnificent Seven.”
Industrials, financials, and certain cyclical sectors participated in the rally.
Improved market breadth is generally viewed as a healthy sign for longer-term bull market sustainability.
3. Interest Rates Remained a Significant Driver
Treasury yields moved higher during portions of the quarter as economic data remained stronger than expected.
Investors reduced expectations for multiple Federal Reserve rate cuts.
Rising yields created headwinds for bonds and interest-rate-sensitive sectors such as utilities and real estate.
4. Economic Data Remained Supportive
Consumer spending remained healthy.
Employment data continued to show a resilient labor market.
Corporate earnings generally exceeded expectations, providing support for investor confidence.
5. Geopolitical Risks Persisted
Tensions in the Middle East created occasional market volatility.
Trade and tariff discussions remain on a potential risk.
Despite these concerns, markets largely focused on earnings growth and economic strength. “Back to the Basics” for overall market health.
What Investors Should be Monitoring Heading into Q3
Potential Tailwinds
Continued earnings growth.
Ongoing AI investment cycle.
Healthy consumer spending.
Expanding market participation beyond technology.
Potential Risks
Higher Treasury yields.
More restrictive Federal Reserve policy than expected.
Unexpected geopolitical escalation.
Signs that AI-related spending growth slows down.
Bottomline:
The second quarter reinforced an important lesson for investors: market leadership can broaden while still being driven by powerful long-term dynamics. Although volatility remains likely due to interest-rate and geopolitical uncertainties, the combination of solid earnings and resilient economic activity, has kept the primary market trend positive. Maintaining a disciplined, diversified investment process remains more important than attempting to predict short-term market movements.
Isn’t America Great!
Not a question...a statement.
We live in an extraordinary country.
My pastor shared a story over the weekend from the New York Post that really struck me. It isn’t about politics or economics, it’s about perspective.
A Japanese tourist visiting the United States for the World Cup wrote about his first experience at a Mexican restaurant. Before he had even placed an order, a basket of chips and salsa appeared on the table.
Confused, he stopped the waiter and said, “We have not earned these.”
The waiter simply smiled and replied, “They just come with the table, man.”
The tourist later reflected:
“They come with the TABLE. In my land, hospitality is a debt. Every gift creates an obligation... Here, the gift arrives before you have even proven you can pay for dinner.”
His friend warned him not to fill up on the chips, but it was too late. Honor demanded he finish every basket. By the time his meal arrived, he admitted he had been “defeated by a courtesy.”
One line especially stood out to me:
“Generosity that arrives before the request cannot be repaid. It can only be survived.”
That thought extends well beyond chips and salsa. It reminds me of the many blessings we receive every day, many of which arrive before we ever ask for them. For those of us with a faith perspective, it also echoes the grace we’ve been freely given.
The story prompted thousands of Americans to look at familiar things through refreshed eyes. Something as simple as complimentary chips became a reminder that hospitality, generosity, and kindness are woven into much of everyday life in our country.
This same group of Japanese fans also became known for bringing their own trash bags and helping clean the stadium after matches, a simple act of respect that earned admiration around the world. Their appreciation for our hospitality, paired with their own example of service, offers a lesson for all of us.
It’s easy to become consumed by headlines, social media, and the daily frustrations that surround us. Yet sometimes it takes the eyes of a visitor to remind us how much we have to be thankful for.
America certainly isn’t perfect. No nation is. But we are blessed with freedoms, opportunities, generosity, and everyday acts of kindness that many people around the world still find remarkable.
Sometimes the greatest reminder of how fortunate we are, comes from someone seeing our country for the very first time.
May we never lose our sense of gratitude, for the blessings we’ve been given and for the privilege of calling America home.
God Bless America!!!!!!!
Current Strong Tower Model Allocation
Clients Only — Allocation as of 07/07/2026
Bottom Line:
62.00% of our model is currently in the top 4 Industry Groups.
92.00% of our model is currently in the top 8 Industry Groups.
About Us
At Strong Tower Wealth Management, we offer comprehensive wealth management services using a goal-focused and holistic approach that considers each client’s overall financial situation, including their family, circumstances, and objectives. Our services include investment management, insurance planning, and estate planning coordination, provided with an emphasis on clarity and transparency.
Not a client yet? We invite you to schedule an introductory assessment with Brett to discuss your financial goals and learn more about how we can support you.
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com