By Park-Elm|2026-08-04T18:18:43+00:00August 4th, 2026|Markets|
- Turbulence continued to plague U.S. markets in July, as stocks were buffeted by AI-related jitters and fluctuating oil prices stemming from the conflict in the Middle East. The Fed’s decision to keep rates steady spooked investors, but subsequent positive reactions to Big Tech earnings results and easing inflation assuaged nerves. The S&P 500® made a comeback in the final two trading sessions, climbing more than 2% to finish the month flat.
- Smaller-caps and mega-caps underperformed their large-cap peers, with the S&P MidCap 400® and S&P SmallCap 600® declining by 2% and the S&P 500 Top 50 down 1%. Market leadership continued to broaden, with the S&P 500 Equal Weight outpacing the 500 for the second consecutive month.
- Rising market breadth was characterized by a rotation in sectoral performances. Aided by the tailwind of rising crude oil prices, Energy led, up 13%, followed by Financials. Meanwhile, a selloff across the AI value chain, from semiconductors to the mega-cap hyperscalers led to a decline of 3% for Information Technology, despite a strong rebound in the last two trading days.
