Weekly Market Update – July 20, 2026

Price Return Last Week

S&P 500  (1.5%)  S&P Mid Cap  (0.2%)  Russell 2000  (0.5%)

MSCI EAFE (0.8%)     MSCI EM (4.1%)

10 Yr US Treasury Rate – fell from 4.57% to 4.54%

Source: Refinitiv Eikon

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Recent News

U.S. Adds Tariff on Brazilian Imports – After a yearlong investigation into Brazilian trade practices, the U.S. announced they are imposing a 25% tariff on some Brazilian imports.  Coffee and beef will be excluded.  President Trump had previously imposed a 50% tariff on Brazilian goods but this was struck down by the Supreme Court.  Before this announcement non-exempt Brazilian imports were only subject to a 10% tariff.

Source: The Wall Street Journal

Core CPI – Jun: 0.0% (Reuters Poll est. 0.2%) May: 0.2%

A surprising CPI report was released listing no increase in core inflation versus the previous month.  Declining prices for auto insurance and communication helped keep inflation low.  The cost of shelter rose a modest 0.1% month-over-month, representing the smallest increase since 2021.  Despite the slowdown, market-based indicators still anticipate a hike in interest rates after the Federal Reserve meeting in September.  The last time the annual change in inflation was reported below 2% was early 2021.

Source: Thomson Reuters

Warsh Testimony – Newly installed Federal Reserve Chairman Kevin Warsh testified to the House of Representatives on Tuesday.  In his comments, he stated that he would “continue to do my job” even if targeted personally by President Trump.  He reiterated that “the independence of the Fed is sacrosanct.”  Despite the low inflation report last week, Warsh refused to “cherry-pick” the report to claim that inflation was back to normal.

Source: Thomson Reuters

Fifty-Stew – Bangkok restaurant Wattana Panich is known for producing a beef broth soup that has been cooking for 52 years.  The soup was started by the current owner’s grandfather and has remained simmering for decades with only brief pauses.  Also known as forever soup or perpetual stew, the restaurant claims that they have never had a case of food poisoning linked to them and fame for the soup on social media has caused an increase in sales of 30% over the last five years.

Source: The Wall Street Journal

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Upcoming Events

7/21 – Notable Earnings Reports: Danaher, Equifax, DR Horton, Marsh & McLennan, Northrop Grumman, GM, 3M, Chubb, Capital One, EQT

7/22 – Notable Earnings Reports: Northern Trust, Pultegroup, AT&T, GE Vernova, IBM, Texas Instruments, Tesla, ServiceNow, Alphabet

7/23 – Notable Earnings Reports: Union Pacific, Honeywell, Blackstone, Comcast, Dover, Lockheed Martin, Southwest Airlines, T-Mobile, Norfolk Southern, Thermo Fisher Scientific, Tractor Supply, RTX, Deckers, Intel

7/24 – S&P Manufacturing PMI, S&P Services PMI, Notable Earnings Reports: American Express, Verizon, Nextera Energy

Source: Refinitiv Eikon

Disclosure

This material, including references to specific securities, is for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security.       Views are as of the date shown and may change. Forecasts and forward-looking statements are not guarantees of future results. Information is believed reliable but not guaranteed for accuracy or completeness; third-party sources are not affiliated with Chesley, Taft & Associates (CTA).  Indexes are unmanaged, not investable, do not reflect fees or expenses, and shown for illustrative purposes only. Past performance is not indicative of future results. Viewing this material does not create an advisory relationship with CTA.