Tensions Ease Slightly Ahead of Friday Trading

• Brent crude dropped 3% to $97/bbl and WTI to $89/bbl after Thursday's spike above $100 triggered market selloff; Iran rejected Iraq-brokered cease-fire
• Bond yields hit highest levels of Trump's second term: 10-year at 4.68% and 2-year at 4.33%, signaling ongoing economic concerns
• Major Q2 earnings beats reported: American Express ($4.53 EPS), SLB ($0.55 EPS up 4 cents), while NextEra Energy and Verizon posted mixed results; S&P flash PMI and New Home Sales data expected after open

Market Summary: Tensions Ease Slightly Ahead of Friday Trading

Market Overview

Pre-market trading showed modest buying activity on Friday, July 24th, 2026, following Thursday's significant decline across major indexes. Market sentiment improved slightly despite ongoing geopolitical tensions.

Geopolitical Developments

The U.S. continued military operations in Iran for the 13th consecutive day, with Iran rejecting an Iraq-brokered cease-fire agreement. Despite the ongoing conflict, oil prices retreated 3% from Thursday's highs, with WTI crude falling to $89/barrel and Brent crude declining to $97/barrel. Brent's surge above $100/barrel on Thursday had been a primary catalyst for the market selloff.

Fixed Income

Bond yields remained elevated at multi-quarter highs, with the 10-year Treasury at 4.68% and the 2-year at 4.33%—both the highest levels of President Trump's second term. These sustained elevated yields signal market concern about economic conditions.

Corporate Earnings

Four major companies reported Q2 results:

• American Express (AXP): Beat estimates at $4.53 per share
• NextEra Energy (NEE): Posted mixed results at $1.15 per share
• SLB Corp (SLB): Exceeded expectations by $0.04, reporting $0.55 per share
• Verizon (VZ): Beat by $0.03 with earnings of $1.30 per share, though revenue results were mixed

Economic Data Expected

Post-opening releases include S&P flash Services PMI (expected 51.5) and Manufacturing PMI (expected 54.4) for July, with FIFA World Cup activity potentially boosting services demand. New Home Sales for June are projected to rebound to 606K units from May's 580K.