July 2026 Monthly Market Review

An excerpt from our July 2026 Monthly Market Review:

The U.S. equity market fell slightly in July amid a major momentum reversal. Questions surrounding AI winners and losers appeared to be the main market driver. Chip producers suffered an especially large reversal in fortune. Developed non-U.S. equity markets rose, while emerging equities declined, dragged down by sharp falls in the share prices of Korean and Taiwanese chip producers. The BoE, BoJ, ECB, and the Fed kept rates unchanged, decisions seen as hawkish holds by the market. The U.S. Treasury yield curve steepened as rising risk premiums sent the 30-year yield to its highest level since 2007. The on-again off-again Iran war continued to play havoc with oil markets. Oil prices rebounded sharply in July, after a steep drop in June. They are up 47.5% so far this year. The U.S. dollar index fell. With the Japanese yen near 40-year lows against the dollar, Japan and the U.S. took the unusual step of a concerted intervention to support the yen’s price, resulting in a large appreciation at month end.