Asset Management Weekly Market Commentary

Market updates for the week ending
July 24, 2026

Key observations

• The S&P 500 ended the week with a modest loss as sentiment and risk appetite waned with news out of the Middle East pointing toward an escalation of the ongoing conflict with no off-ramp in sight. Earnings results took a backseat to the rapid rise in energy prices which forced Treasury yields higher to the levels last seen in early 2025. Market participants could remain hesitant to take risk as rhetoric between the U.S. and Iran points to both sides digging in, but with four of the ‘Magnificent 7’ set to report earnings in the week to come any stabilization in energy prices could allow investors to again focus on impressive earnings results.
• Developing markets abroad held up relatively well on the week with South Korea and Taiwan posting gains as memory and semiconductor names found buyers after three weeks of lower stock prices. Chinese stocks have quietly had a resurgence in July, with the MSCI China index rising over 4.5% month-to-date through Friday and acting as a ballast for the broader MSCI EM index amid a steep selloff in Korea.
• U.S. Treasury yields across the curve made year-to-date highs as energy prices rose sharply, leading market participants to ratchet expectations for a rate hike this month higher. The 2-year yield jumped 15-basis points on the week while the 10-year yield rose 13-basis points, presenting fixed income investors with a painful ‘bear flattener.’ Corporate bonds faced headwinds from the rise in Treasury yields and wider credit spreads, leading to losses for investment grade and high yield issues.

What we're watching this week

• Another big week for earnings releases is in the offing with Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and Microsoft (MSFT) all set to report. These releases will be broken down and compared to last week’s releases out of Alphabet and Tesla as investors reevaluate the AI investing landscape and potentially reposition on the heels of quarterly results out of the group.
• The Federal Open Market Committee (FOMC) concludes its two-day meeting on Wednesday, and following cooler CPI and PPI readings from June, is now expected to leave the Fed funds rate unchanged at this meeting.
• June Personal Consumption Expenditure (PCE), the FOMC’s preferred inflation gauge, is released Thursday. Headline PCE is expected to fall 0.1% month over month and rise 3.7% year over year, which would compare to 0.4% and 4.1% readings in May. Core PCE, which is more closely watched by policymakers, is expected to rise 0.2% month over month and 3.3% year over year, compared to 0.3% and 3.4% readings the prior month.