Markets This Week: 5 Things to Watch (July 20-24, 2026)

There are plenty of exciting developments ahead in the markets this week, including new labor market, housing, and manufacturing data. Geopolitical tensions also peaked over the weekend, and investors should keep an eye on how these developments will impact markets this week.

1. Labor Market Sentiment

One of the main data points that may impact future rate hikes is an update on the health of the US labor market.

Last month’s Jobs report showed weaker employment growth, as the US economy only added 57,000 new jobs.¹

There will likely be additional layoff data from major tech companies this week. So far, major giants like Xbox, Robinhood, and Microsoft have already conducted major layoffs, and Google employees recently signed a petition calling for layoff protection.²

Investors should also be on the lookout for new weekly jobless claims data, which will be released on Thursday. Moreover, major tech companies are also reporting earnings data next week and may provide updates about layoffs.

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2. Manufacturing PMI Data

Investors should also keep an eye on the new S&P Global Flash US Manufacturing PMI data, which will be released on Friday.

Manufacturing PMI in the United States recently dropped slightly to 53.9, below the initial projections of 55.7.³

Manufacturing PMI

Many global markets now face the risk of slower manufacturing activity, as recent geopolitical tensions have increased input costs.⁴

This data, coupled with movements in energy prices, should provide more insight about growth data for Q2 2026 and subsequent quarters.

3. New Home Sales

Another major sector to monitor in the markets this week is real estate, which has been experiencing a moderate cooldown.

Pending home sales recently fell by 5.4% MoM and 0.3% YoY in June, according to data from the National Association of Realtors.⁵

The US Census Bureau and Department of Housing and Urban Development will release June 2026 new home sales data on Friday. Sales have been cooling down in recent months, and new June data could impact sentiment for real estate equities.⁶

The Vanguard Real Estate Index Fund ETF (VNQ) has rallied 13% YTD amid concerns over rate hikes and other broader economic concerns.

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4. ECB Rate Decision

Another important event in international markets this week is the upcoming ECB interest rate decision.

The ECB recently decided to hike rates by 25 basis points in June to combat the new wave of inflation that hit markets.⁷

Euro Area Interest Rate

Inflation cooled down in June, but global central banks will have to continue monitoring geopolitical developments and new inflation data in subsequent months. The ECB will make its decision about rates during its meeting this Thursday.

5. Geopolitical Tensions

Geopolitical tensions took a nasty turn at the end of last week. Elevated tensions between Iran and the United States could be one of the main market movers this week.

Both Iran and Kuwait recently reported attacks on their infrastructure on Friday, severely harming the progress of previous ceasefire discourse.⁸

Oil prices rose by more than 10% during the week due to these tensions, reaching a new monthly high.⁹

The Vanguard Energy ETF (VDE) rallied by 2.4% last week amid the S&P 500 decline. Oil equities may be an interesting sector to observe this week, as additional geopolitical flare-ups could continue to impact energy equities.

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