Top U.S. Stories

  • The U.S. military carried out its 13th consecutive night of strikes against Iran, with Defense Secretary Pete Hegseth telling Congress the campaign’s cost has now reached $37.5 billion, though experts say the real tally is likely higher. Why it matters: a war entering its second week with no clear off-ramp is exactly the kind of geopolitical shock that keeps oil prices, and therefore consumer prices, elevated for longer than markets initially price in.
  • Oil briefly topped $100 a barrel this week after Houthi rebels attacked two Saudi oil tankers, Encelia and Layla, in the Red Sea. Why it matters: the Red Sea is a critical artery for Europe-Asia shipping; sustained attacks there raise both energy costs and shipping insurance premiums well beyond the region.
  • The Dow Jones rose 235.60 points (+0.46%) to 51,947.25 and the S&P 500 edged up 0.05% to 7,411.98 on Friday, July 24, while the Nasdaq Composite fell 0.64% to 24,975.82 as chip stocks lagged. Yahoo Finance
  • In New York City, a group of landlords sued the Rent Guidelines Board over its rent-freeze decision, alleging it acted on behalf of Mayor Zohran Mamdani and his campaign pledge. NY1
  • The Trump administration is considering new or expanded immigrant detention facilities at up to 14 sites, including Guantánamo Bay and the U.S. Virgin Islands. Latin Times
  • Indian activist Sonam Wangchuk ended a 26-day hunger strike that helped galvanize a youth protest movement; demonstrators say they will continue to press for the education minister’s resignation. AP
  • Secretary of State Marco Rubio met Russian Foreign Minister Sergey Lavrov on the sidelines of the ASEAN foreign ministers’ gathering in Pasay, Philippines. AP

Markets

The Federal Reserve’s FOMC meets July 28–29, keeping the policy outlook in focus, per Forbes. The dollar bought 163.82 yen as of July 24, per frankfurter.app, extending a weak-yen trend that can raise Japan’s import costs. Japan’s Nikkei 225 slid 1,811.45 points to 64,611.15 on July 24, dragged down by a pullback in AI/semiconductor names and Middle East jitters.

Stocks in Focus

Semiconductor and AI-linked names, including materials supplier Ibiden (down more than 4%), led losses as investors reassessed how durable the AI capex boom really is. Energy and resource stocks drew buying interest on the oil spike, while shipping and refining names are under scrutiny for how Red Sea disruption feeds into freight costs and margins.

Not a recommendation to buy or sell any specific security.

Compass Insight

This week’s market story has one thread: geopolitical risk is now an inflation story. Thirteen nights of U.S. strikes on Iran and Houthi attacks on tankers in the Red Sea pushed oil briefly past $100. Pakistan is exploring a path toward renewed U.S.-Iran talks, according to Reuters, but shipping risks around the Red Sea and the Strait of Hormuz remain important near-term drivers. Medium term, the Fed’s July 28–29 meeting will be important for the policy outlook. None of this is investment advice, but it is a useful frame for why oil and rate expectations are moving together right now.

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Auto-generated and AI-written. Not investment advice.