Weekly Market Commentary - July 17, 2026

Markets showed resilience through much of the week but finished on a softer note amid late-session pressure, particularly in technology. Here is the daily S&P 500 breakdown for the week:

• July 13: -0.79% (to 7,515.34)
• July 14: +0.38% (to 7,543.59)
• July 15: +0.38% (to 7,572.40)
• July 16: -0.51% (to 7,533.77)
• July 17: -1.01% (to 7,457.69)

The index ended the week lower by 1.5%. The Dow Jones Industrial Average held relatively steady near recent highs, while the Nasdaq experienced greater pressure from semiconductor and AI-related names. Small caps (Russell 2000) continued to show relative resilience on a year-to-date basis.

Oil prices moved higher on the week (WTI crude approaching the $79 level) as renewed geopolitical concerns in the Middle East, including incidents affecting shipping in the Strait of Hormuz, added a risk premium. Gold and bond yields showed modest movement, with the 10-year Treasury around 4.56%.

Geopolitical Developments and Energy Markets

Fresh U.S.-Iran tensions and disruptions in the Strait of Hormuz were key headline drivers. Shipping traffic slowed at times, reinforcing supply-chain sensitivities. Energy stocks found support from the higher oil prices, highlighting how old-economy sectors can provide ballast during periods of geopolitical friction.

These events create volatility, but markets absorbed them without a broad panic sell-off — a sign of underlying economic and corporate strength. Our risk-management disciplines remain focused on such crosscurrents without overreacting to short-term noise.

The AI Trade: Healthy Digestion Continues

Semiconductor and AI-linked names faced selective pressure, particularly later in the week. After years of exceptional gains, investors are shifting emphasis from capital spending announcements to tangible evidence of earnings delivery, productivity gains, and returns on that investment. This is a natural and healthy phase of the cycle. It should be noted that we have recently begun reducing our positions in companies related to data center development, selling COHR and taking profits in VRT.

Strong underlying results from leaders in the space have not disappeared, but forward expectations are now under closer scrutiny. This selectivity benefits active managers who focus on earnings revisions and fundamental sustainability rather than momentum alone. Our proprietary quantitative framework — centered on earnings revision trends, augmented by AI momentum screening and rigorous fundamental analysis — is purpose-built for exactly these environments. With that said, we will continue to track momentum signals across data center companies and proactively adjust our exposure as the opportunity set evolves.

Earnings Season: Robust Growth Expectations

Q2 earnings season is accelerating, with consensus calling for S&P 500 earnings growth in the low-to-mid 20% range year-over-year (potentially higher once actual beats are incorporated). This would mark another strong double-digit quarter in a multi-quarter streak. Energy and Technology are leading contributors, supported by upward revisions in several other sectors.

The market’s focus is increasingly on quality of earnings and guidance, particularly around AI monetization. Companies demonstrating clear paths to returns from their investments are likely to be rewarded, while those that fall short may see valuation adjustments. This environment plays directly to our strengths: identifying names with positive and sustained earnings momentum while applying disciplined sell rules when revisions weaken.

How Our Sector Positioning Provided Support

During last week’s technology selloff, WealthTrust portfolios benefited from our deliberate sector allocations in Financials, Healthcare and Energy. Financials posted relative strength amid the rotation away from high-valuation tech names, while Energy holdings gained support from rising oil prices tied to geopolitical developments. These positions helped offset weakness in the more concentrated technology areas and demonstrated the value of our sector rotation discipline within the broader quantitative and fundamental framework. This is a clear example of how our process — which integrates earnings revisions, momentum signals, and valuation considerations — seeks to deliver more balanced performance across market environments over time.

Implications for Active Management

This week’s price action — intra-week recovery attempts followed by late pressure — underscores the value of our numbers-first approach. Passive, cap-weighted strategies can remain heavily concentrated in high-valuation leaders even as dynamics shift. Our process seeks durable earnings compounders across a broader set of opportunities and actively manages risk through clear, revision-based signals.

Signs of broadening (small-cap resilience, relative strength in financials, healthcare, and other areas) are encouraging and consistent with a healthier market backdrop over time. Valuation compression in parts of the AI complex may also create entry points for high-quality names at more reasonable levels.

DBS Long-Term Growth & DBS Great 38 Large Cap Growth Top Ten and Benchmark Weekly Performance Summary

Top Ten Equity Reviews:

WealthTrust DBS Long Term Growth Portfolio 

Looking Ahead

Key focal points in the coming weeks include:

• Earnings commentary on AI ROI and forward spending plans.
• Developments around Middle East tensions and their impact on energy markets.
• Fed Chair Warsh’s ongoing communications, with emphasis on price stability amid energy-driven inflation pressures (rates currently held steady in the 3.50–3.75% range).

We remain constructive on the long-term earnings power of U.S. companies, driven by innovation and productivity tailwinds, while staying vigilant with our sell disciplines to protect capital during periods of rotation or heightened uncertainty.

Closing Thoughts

Markets tested conviction this week but demonstrated resilience in the face of geopolitical headlines and sector-specific digestion. Our role at WealthTrust is to navigate these dynamics with discipline — owning businesses with improving earnings trajectories, managing risk proactively, and positioning portfolios for sustainable long-term growth.

This approach is designed to help you stay focused on your goals and sleep better at night, regardless of short-term volatility.

If you would like a portfolio review, allocation discussion regarding the Great 38 Core/Growth Blend, WealthTrust DBS Long Term Growth strategies, or any other questions, please reach out. We are here to serve you.

Thank you for your continued trust.

John McHugh President & Chief Investment Officer WealthTrust Asset Management LLC Destin, Florida

This commentary is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. All investments involve risk, including loss of principal. GIPS-verified performance details available upon request for qualified investors.