The Weekly Wrap - July 18, 2026

Texas launched its own stock exchange, the TXSE, backed by financial giants like BlackRock and Goldman Sachs to challenge the NYSE and Nasdaq duopoly amid a boom in initial public offerings. This development comes as major banks report record-smashing profits, while the tech sector faces significant disruption, with IBM's stock plunging due to AI spending shifts, SpaceX struggling post-IPO, and PayPal receiving a $53 billion buyout offer. The broader market is navigating a complex environment of rising oil prices from Middle East conflicts, a new Federal Reserve chairman pledging a policy "regime change" to fight inflation, and the rollout of new global tariffs by the Trump administration.

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From Phinextra Pro in Tampa, it's Saturday, July 18th, and I'm Rachel Anderson with your weekly wrap. It was a tale of two markets this week, defined by the double-edged sword of artificial intelligence. While the AI boom fueled record profits for some, it triggered a brutal reckoning for others. The biggest casualty was IBM, which suffered its largest one-day stock drop on record, plunging 25% and wiping out nearly $70 billion in market value. The corporate stalwart issued a rare profit warning, confirming Wall Street's newest fear that companies are shifting their tech budgets so aggressively toward AI hardware that it's crowding out traditional software and mainframe spending. Oracle shares tumbled to a 14-month low amid concerns over its massive debt load and heavy reliance on a single massive AI contract with OpenAI. And the post-IPO hangover for SpaceX turned into a full-blown migraine. The stock hit an all-time low, now down over 38% from its peak, as investor skepticism is growing over its profitability, and an aborted Starship test flight added to the gloom. Netflix also stumbled, with its stock tanking after its forward-looking guidance disappointed investors. But for the companies at the heart of the AI build-out, the boom is just beginning. Chipmaking giant TSMC posted a staggering 77% jump in quarterly profit and pledged to invest another $100 billion in its U.S. facilities in Arizona. The AI frenzy has also reshuffled the top of the market, with Apple dethroning NVIDIA to reclaim its crown as the world's most valuable company, with investors betting on Apple's ability to monetize AI through its vast ecosystem. The conflict between the US and Iran escalated dramatically, with military strikes disrupting shipping through the Strait of Hormuz. Oil prices surged after Kuwait reported that Iran had attacked a critical power and water desalination plant. The threat of a wider conflict now looms over global energy supplies. Inflation data for June showed a welcome moderation, but that was largely due to a temporary drop in gas prices during a brief Middle East ceasefire that has since collapsed. The new Fed chairman, Kevin Walsh, made his position clear in testimony to Congress this week, pledging a policy regime change to crush the tax of inflation on the American people. And adding to trade tensions, the White House announced new 25% tariffs on Brazil, with a broader global rollout expected soon. Despite the headwinds, parts of corporate America are thriving. The nation's largest banks, including JP Morgan, Goldman Sachs, and Bank of America, smashed earnings records, reporting a collective $49 billion in quarterly profits, fueled by a boom in deal making and a resilient consumer. That deal making was on full display as payments firm Stripe and private equity giant Advent made a joint $53 billion offer to acquire a struggling PayPal. In healthcare, United Health and Merck both delivered blockbuster news, with United Health raising its profit forecast and Merck winning FDA approval for a powerful new cholesterol-lowering pill. In a sign of the shifting financial landscape, the Texas Stock Exchange officially launched this week. Backed by heavyweights like BlackRock and Citadel, the TXSE aims to challenge the New York Stock Exchange and Nasdaq duopoly, capitalizing on the wave of companies moving their headquarters and incorporations to the Lone Star State. U.S. Treasury yields fell over the course of the week as military actions escalated in the Middle East. The 10-year was at 4.55%, the two-year yield was at 4.18%, and the 30-year bond yield was at 5.07%. Finally, let's check the scoreboard. Wall Street finished in the red following a chip sell off at the end of the week. After the five days, the SP closed out down over 1.5%, the Dow ended down about 1%, and the Nasdaq led losses, finishing down nearly 3%. And that's a wrap for the week. I'm Rachel Anderson from FinExtra Pro, turning data into stories.