Asset Management Weekly Market Commentary

Market updates for the week ending
July 31, 2026

Key observations

• There was a downward bias to equity prices early in the week as sentiment and risk appetite were subdued in the lead-up to the FOMC’s post-meeting press conference on Wednesday. Following the FOMC meeting, equity prices initially fell sharply but recovered on Thursday following earnings releases out of select ‘Mag 7’ members. Even as long-term Treasury yields made year-to-date highs on Friday the S&P 500 continued to rally and closed higher by over 1% on the week. The ‘one step forward, one step back’ path taken by equity indices in the past two months has been frustrating, but we view resiliency and an impressive start to earnings season as reasons to remain constructive on stocks, broadly speaking.
• Earnings reports out of ‘Magnificent 7’ members as well as a few other higher-profile names in the information technology sector appeared to alleviate some of the concerns surrounding the AI bubble bursting, leading to a much-needed bounce in the beleaguered memory and semiconductor industry groups. Abroad, developed markets held up relatively well amid last week’s volatility, with indices tied to the Eurozone, Japan, and U.K. all posting modest gains.
• Yields on longer-dated Treasuries jumped on the heels of the FOMC’s decision to stand pat on rates as market participants appear to be questioning the Fed’s resolve when it comes to getting inflation back down toward its 2% target. Short-dated yields responded by falling a handful of basis points as the odds of a September rate hike fell, which led to a substantial steepening of the yield curve.

What we're watching this week

• The Institute for Supply Management (ISM) Services index for July is released Wednesday with the reading expected to improve to 54.4 from 54.0 in June. A reading above 50 indicates expansion or growth, while a reading below 50 indicates contraction.
• The July nonfarm payrolls report is released Friday with the consensus estimate calling for 85k jobs to have been created during the month. Average hourly earnings are expected to rise 0.3% month over month and 3.5% year over year, while the unemployment rate is expected to remain flat month-over-month at 4.2%.