Adobe and ServiceNow Gain as Tariffs Spark Fed Rate Hike Fears

Today's AI insights from 7horns.ai: Our latest stock market analysis highlights a major tech rotation, with the Nasdaq Composite falling 0.64% to 24,976, while software giants ServiceNow surged 7.4% and Adobe gained 6.1%. This shift comes as new 10% to 12.5% tariffs fuel inflation fears, boosting the probability of a Federal Reserve rate hike to over 31%. For investors seeking a clear market outlook, this mix of macro shifts and upcoming megacap earnings underscores the value of data-driven investing and AI market intelligence to deliver actionable trading insights amidst shifting financial news. AI insights powered by 7horns.ai. Visit 7horns.ai for your free daily AI market analysis.

You are listening to seven horns a i — your a i-powered market update. Happy Sunday, July twenty-sixth, twenty twenty-six. With the markets closed for the weekend, we are taking a step back to look at a week defined by sharp rotations, major trade policy shifts, and a preview of the high-stakes days ahead. On Friday, we saw a clear tale of two markets. Traditional value and cyclical names found favor, helping the Dow Jones Industrial Average gain zero point four six percent, closing at fifty-one thousand nine hundred forty-seven. Meanwhile, tech took a hit, dragging the Nasdaq Composite down zero point six four percent to twenty-four thousand nine hundred seventy-six. The S and P five hundred was caught right in the middle, closing essentially flat with a tiny gain of zero point zero five percent to end at seventy-four hundred and twelve. Looking at the weekly trend, all major indices ended lower overall, driven by an intensifying rotation out of high-flying artificial intelligence infrastructure names. Investors shifted their focus to software companies with proven, near-term monetization, like ServiceNow, which surged seven point four percent on Friday, and Adobe, which gained six point one percent. On the flip side, hardware and chip design names faced heavy profit-taking. MaxLinear, for instance, plummeted twenty-one point five percent. Beyond corporate earnings, two massive macroeconomic stories shook the market on Friday and will continue to reverberate this week. First, the administration's new tariffs of ten to twelve point five percent on sixty countries took effect, covering virtually all U S imports. Investors are closely parsing how this might stoke inflation. Second, and partly due to those tariff concerns, traders are raising their expectations for the Federal Reserve's upcoming meeting. The probability of a rate hike this week has jumped to over thirty-one percent, compared to ten point seven percent a week ago. In commodities, crude oil saw a notable pullback, with Brent crude dropping four point two percent to ninety-six dollars and fifty-one cents a barrel, signaling that demand concerns may be outweighing geopolitical premiums. Looking ahead, Sunday evening futures suggest this rotation is poised to continue when trading resumes. Nasdaq one hundred futures are pointing lower, down over one percent, while Dow futures are modestly higher by nearly half a percent. This divergence will likely set a mixed tone for Monday's Asian open. While international proxy exchange-traded funds for Japan and China finished slightly positive on Friday, the tech-heavy Nasdaq weakness could weigh on Asian tech indices early Monday. Tokyo traders will also be bracing for a highly active, earnings-driven week. In the U S, we are facing the ultimate test of the summer. The Fed will announce its interest rate decision on Wednesday, July twenty-ninth, and a heavyweight line-up of megacaps will report earnings. Microsoft and Meta report on Wednesday, followed by Apple and Amazon on Thursday. Investors will be demanding hard proof that massive capital expenditures are turning into real revenues. That is your weekend market review from seven horns a i. Enjoy the rest of your weekend, and we will see you when the bell rings Monday. Visit seven horns dot a i for more insights.