Weekly Market Movers — Key Highlights
  • S&P 500 reaches fresh record highs as inflation pressures ease.
  • The AI investment boom continues to power global technology stocks.
  • China’s slowing growth raises concerns over global demand trends.
  • Nvidia spearheads a $500 billion AI infrastructure initiative.

Global equities moved higher during the week as softer U.S. inflation data supported expectations of a measured central bank policy path and helped lift major equity indices to new highs. AI-related companies continued to drive market leadership, with strong results from firms such as Nebius, Super Micro Computer, and CoreWeave reinforcing enthusiasm for infrastructure investment. Global markets finished the week higher, despite geopolitical tensions in the Middle East, weaker Chinese economic data, and a decline in U.S. retail sales which tempered sentiment late in the week. The Bank of Japan’s (BoJ) discussion summary indicated a hawkish rate policy. Fed officials reiterated inflation risks and emphasized the prioritization of inflation management. 

In global geopolitics, safe-haven flows and investor anxiety intensified following reports of an attack on a commercial tanker in the Persian Gulf, which culminated on Friday when the U.S. Department of Defense threatened an indefinite naval blockade of the Strait of Hormuz. Supply disruption fears, drove up Brent crude prices toward $87 per barrel and broad-based profit-taking across vulnerable global indices. Iran’s announcement that it would join the BRICS New Development Bank underscored ongoing shifts in geopolitical and economic alliances among emerging markets.

Global Updates
  • Global Equities (as measured by the MSCI All Country World Index) advanced this week, supported by improving risk sentiment following softer-than-expected U.S. inflation data, which reinforced expectations that major central banks would maintain a measured policy stance. Global equities were further supported by strong earnings and guidance from AI-related companies, as continued enthusiasm for artificial intelligence infrastructure investment lifted technology shares across developed and Asian markets. Offsetting some of these gains were persistent geopolitical concerns surrounding the U.S.-Iran conflict and the Strait of Hormuz, weaker Chinese inflation data signaling subdued domestic demand, and softer U.S. retail sales and consumer confidence readings that tempered market momentum later in the week. Overall, gains in technology and growth-oriented sectors outweighed macroeconomic and geopolitical headwinds. 
  • The Eurozone economy grew by 0.4% in the second quarter of 2026, accelerating from flat growth in the first quarter. This better-than-expected performance of European economies was driven by AI-related investments and resilient domestic demand, which has helped bolster European equity sentiment despite ongoing Middle East conflict and energy pressures.
  • The UK economy expanded by 0.4% in the second quarter of 2026, cooling from 0.6% in the first quarter. Growth was supported by strong domestic demand including a 1.2% increase in gross fixed capital formation and a 0.3% rise in household consumption.
  • Nebius Group’s stock price rallied sharply after the company reported a stronger-than-expected second-quarter earnings of $236.2 million and 454% higher revenue of $582.3 million, reflecting continued investor enthusiasm for AI infrastructure-related companies.
  • The Bank of Japan’s (BoJ) Summary of Opinions indicated that the BoJ could lift rates more quickly than the standard pace of two increases per year to prevent falling behind the curve on inflation. Board members argued that the BoJ must adopt a flexible approach and openly discuss the size of rate hikes, rather than sticking to a preset or predictable path.
  • China’s July retail sales rose by a lower than expected 0.6% year over year and industrial output growth slowed to 4.5% missing expectations, while fixed-asset investment contracted further. The weaker-than-expected data reinforced concerns over the pace of China’s economic recovery.
  • Ongoing uncertainty surrounding the U.S.-Iran conflict and the continued disruption of Strait of Hormuz shipping flows drove significant volatility in global energy markets. Investors reassessed prospects for a Hormuz reopening and the implications for global inflation and growth.
  • Central Bank of Iran Governor Abdolnasser Hemmati announced Iran’s plans to join the BRICS New Development Bank, highlighting continued efforts to deepen economic and financial ties with emerging-market partners amid the ongoing conflict.
U.S. Equity
  • Major U.S. equity markets advanced during the week, with investor sentiment supported by benign July inflation data that reinforced expectations for a steady Federal Reserve policy path and propelled the S&P 500 to record highs. However, gains moderated late in the week following weaker-than-expected retail sales and softer consumer confidence data, which renewed concerns over consumer spending trends. Technology and AI-related shares were notable contributors to market performance, supported by strong earnings and guidance from Super Micro Computer and CoreWeave, alongside continued enthusiasm for AI infrastructure investment. Conversely, Cisco Systems declined sharply after investors focused on softer margin guidance despite earnings and revenue exceeding expectations.
  • The CPI reading came in as expected with a reading of 0.1% monthly headline inflation for July, easing near-term rate hike concerns and supporting a rebound in risk assets, particularly technology shares. The S&P 500 surged to a record high above 7,800, propelled by the benign inflation data.
  • The July PPI was unchanged versus expectations for a 0.2% increase in wholesale prices, reinforcing the view that inflation pressures were moderating and lifting broad equity sentiment.
  • Super Micro Computer announced a higher-than-expected adjusted EPS of $1.70 and revenue of $11.12 billion for the fiscal fourth quarter. The company issued a higher-than-expected fiscal first quarter revenue guidance of $14.5 to $15.5 billion and full-year fiscal 2027 guidance of $65 to $72 billion, driven by the AI driver demand for servers.
  • CoreWeave reported a 112% higher second-quarter revenue of $2.575 billion, accompanied by a $626 million loss, attributed to higher infrastructure and interest costs. CoreWeave also announced a revenue backlog of $104.2 billion and projected full-year capital expenditure of $35 billion to $39 billion.
  • Nvidia announced partnerships with major asset managers including Apollo Global Management, BlackRock and Goldman Sachs, to mobilize more than $500 billion for AI infrastructure development.
  • Cisco Systems shares fell sharply despite announcing an 18% higher $17. 3 billion in fiscal fourth quarter revenue. Cisco’s stronger than expected fiscal first quarter revenue guidance of $18 billion to $18.2 billion disappointed investors and weighed on the company’s stock price.
  • U.S. retail sales unexpectedly declined by 0.6% in July, raising concerns about consumer spending momentum and tempering investor sentiment. This drop in retail sales was led by a sharp pullback in online shopping and auto purchases, fueling investor speculation that high living costs are finally cooling consumer spending.
  • President Trump’s announcement of tariffs on imported drones and drone components led to a rally in the stock prices of U.S. drone manufacturers and defense-related technology companies.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index rose slightly over the week. 
  • The U.S. 10-year Treasury yield fell slightly to 4.696% and the yield on the 2-year note declined to 4.171% over the week.
  • The U.S. Dollar Index declined slightly to 99.67 over the week.