Written by Amaury de Barros Conti, Partner | Vice President Investments
WHAT MOVED MARKET LAST WEEK
Markets faced a challenging week as rising global bond yields weighed on both equities and fixed income. Investors contended with a combination of higher oil prices, renewed inflation concerns, substantial government debt issuance, and growing questions regarding the sustainability of AI-related investment trends. While economic data remained relatively light, financial markets appear increasingly focused on the implications of higher long-term interest rates and the possibility that central banks may need to maintain restrictive policies for longer than previously anticipated.
The S&P 500 declined 0.6%, the Nasdaq Composite fell 2.1%, and the Dow Jones Industrial Average lost 0.4%, as per Bloomberg data. The weakness was concentrated within technology, semiconductors, and momentum-driven growth stocks, while more defensive sectors and select large-cap companies held up relatively well.
Source: Bloomberg Finance as of July 24, 2026.
- One of the most significant market developments during the week was the continued rise in global bond yields. The U.S. 10-year Treasury yield climbed toward 4.7%, while the 30-year Treasury yield rose to approximately 5.16%, marking its longest period above 5% since 2007. Similar moves occurred globally, with the UK 10-year gilt reaching roughly 5.1% and Germany’s 10-year bund approaching 3.2%. The average yield on the Bloomberg Global Treasury Index reached its highest level since the Global Financial Crisis.
- Several factors contributed to the move higher. Rising energy prices have renewed inflation concerns, while the prospect of substantial government borrowing across major economies has increased the supply of bonds coming to market. At the same time, AI-related corporate debt issuance, projected to exceed $500 billion in 2026, is competing for investor capital and putting additional pressure on long-term rates.
- The second quarter earnings season has produced solid operating results, but market reactions have become less forgiving. Several AI-related leaders reported strong earnings yet saw their share prices decline. Alphabet fell despite reporting a cloud backlog exceeding $500 billion, as investors focused on another increase in capital spending. GE Vernova and Tesla also traded lower despite generally favorable operating results. Conversely, Intel provided a more constructive outlook tied to AI demand.
LOOKING AHEAD
- Investors will be monitoring several major catalysts this week, including central bank decisions, peak earnings season, and key economic data releases.
- The Federal Reserve’s July meeting will be the primary focus. While consensus expectations call for rates to remain unchanged, markets still place meaningful odds on an increase, making Chair Warsh’s commentary especially important. Investors will also closely monitor the Bank of Japan and Bank of England meetings for signs of further global tightening.
- On the corporate front, four members of the Magnificent Seven report earnings: Microsoft, Meta, Apple, and Amazon. Together, these companies may provide valuable insight into AI spending trends, cloud demand, consumer behavior, and corporate capital expenditures. Additionally, investors will receive the advance estimate of second-quarter GDP growth and June Core PCE inflation, both of which could significantly influence interest rate expectations.
Amaury de Barros Conti
Partner | Vice President Investments
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