JECohen says AI spending scrutiny drives July market volatility, Nasdaq slips 3.2%
SPY•Rates, oil shock risk, and Fed policy added to uncertainty
Long-end rates tightened financial conditions; the 30-year Treasury yield ended near 5.28%, while the 10-year was at 4.74%. The Bloomberg U.S. Aggregate Index fell 1.3%.
Oil shock risk resurfaced as Brent briefly topped USD 100, ending near USD 90. WTI closed around USD 85 on Strait of Hormuz disruptions.
The Fed held rates at 3.5%-3.75% on a 9-3 vote. Reduced forward guidance lifted uncertainty, with markets pricing a possible hike by October.
July market update highlights volatility and risk-asset pressure
JECohen’s July 2026 market update flagged higher volatility as AI spending doubts, rising Treasury yields, and renewed Middle East tensions pressured risk assets.
- S&P 500 fell 0.1% in July
- Nasdaq slid 3.2%
- Dow rose 0.3% as the VIX briefly jumped to 21
