NEW YORK, July 20, 2026 – The Nasdaq Composite closed virtually unchanged on Monday, slipping just 0.05% to 25,508.07, as investors adopted a cautious stance ahead of a heavy slate of earnings reports from technology bellwethers. The Nasdaq-100 eked out a 0.04% gain to finish at 28,604.23, but the broader market showed signs of weakness beneath the surface.
Market Breadth Deteriorates
Declining stocks outpaced advancers by a 1.8-to-1 ratio, and the number of new 52-week lows exceeded new highs by nearly four to one. This divergence suggests that the market's recent recovery remains narrowly concentrated in a handful of large-cap names, while the majority of stocks continue to struggle.
Trading volumes were notably light, with 15.50 billion shares changing hands on U.S. exchanges—22.3% below the 20-day moving average. This lack of participation further underscores the cautious mood as earnings season enters its most critical phase.
Chip Stocks Lead Gains, but Rally Fades
The PHLX semiconductor index rose 0.6%, though it had surged nearly 4% earlier in the session before giving back most of its gains. The late-day pullback erased much of the Nasdaq's initial advance, highlighting persistent selling pressure.
Among individual movers, Advanced Micro Devices (AMD) gained 1.6% after announcing an expanded strategic collaboration with Microsoft (MSFT). Nvidia (NVDA) added 0.2%, while Apple (AAPL) slipped 2%, and Alphabet (GOOGL) rose 1.5%.
Earnings Season in Focus
With earnings season still in its early stages, investors are bracing for results from several key players this week. Alphabet is set to report after the close on Wednesday, with a focus on artificial intelligence spending. Texas Instruments (TXN) will also report on Wednesday, offering insight into chip demand. Tesla (TSLA) follows on Wednesday, while Intel (INTC) wraps up the week on Thursday.
“Everybody is waiting for earnings season to really get going,” said Peter Tuz, president of Chase Investment Counsel, in comments to Reuters. Analysts surveyed by London Stock Exchange Group project S&P 500 earnings growth of 26% for the second quarter.
Risks Remain
Brent crude oil rose 1.3% to $89.22, and the yield on the 10-year Treasury note climbed to 4.59%. Further increases in yields could weigh on valuations for growth stocks, which are particularly sensitive to higher discount rates.
Kevin Mahn, chief investment officer at Hennion & Walsh, warned that any reduction in Alphabet's spending could trigger “ripple effects across the entire AI ecosystem,” according to Reuters.
Outlook
For a sustained recovery, the Nasdaq needs a broader base of advancing stocks and a reduction in new lows. Monday’s session offered no improvement on either front, leaving the market’s near-term direction heavily dependent on the upcoming earnings reports.
