Monthly Market Commentary

These monthly market commentaries share a synopsis of the U.S. financial markets with intelligent insights.

Latest Commentary:

July 2026 Market Recap

Dear Investors,

In July, investors were challenged with an array of news events and company announcements that led to elevated volatility and shifting sentiment across broad market indices. Re-escalation of the Iran Conflict and continued fighting in Ukraine, growing questions about future monetary policy actions of the new Fed, and many earnings surprises and some notable disappointments created an unsettled market environment for much of the month. A few of the big names in the S&P 500 were down for the month as analysts looked deeper into the changing fundamentals of companies that were once huge free cash flow generators that now are spending on massive capex projects. New AI related companies also were faced with a dose of reality with questions about future earnings levels required to support speculative valuations.

All was not lost in the month as non-AI dependent sectors rose on solid earnings growth or rising energy prices. Financials, led by global banks, reported strong earnings buoyed by rising corporate lending and investment banking revenues and shook off concerns about potentially higher interest rates. Their balance sheets are stronger and better positioned to weather potential rate turbulence. Energy stocks rose as oil prices increased nearly $15/barrel during the month. Other more value-oriented sectors also held up well during the month, helped by solid earnings growth and a market rotation away from tech and select consumer stocks.

Looking at returns for the month, the S&P 500 was flat at -0.06%, benefiting from a strong rally in tech the last couple of days of the month. Continuing a recent trend, the S&P Equal Weighted index (1.01%) outperformed the Cap Weighted index, extending the recent broadening of the market late in this cycle. Small cap stocks were down -3%, hurt by growth stocks while small value stocks were flat. Non-U.S. developed stocks outperformed the S&P due to their larger exposure to better performing non-tech sectors. Emerging Markets fell more than 3%, brought down by the big declines in South Korean and Taiwanese markets as chip stocks sold off. U.S. bond markets declined -1.30% due to steadily rising interest rates across the curve.

Here are observations on what occurred across the investment markets in July:

Broad Market Performance¹

Data as of July 30, 2026

Domestic Equity²

• U.S. broad market indexes were flat to down during the month with the S&P at -0.06% and the Russell 2000 down -3%. The NASDAQ 100 declined -6.6%.
• Value stocks outperformed growth stocks consistently across all capitalization ranges. The Russell 1000 Value outperformed the Russell 1000 Growth by 8.6% in the month.

International and Global Equities³

• International developed markets were positive in the month, boosted by European stocks that were less exposed to the AI selloffs elsewhere. Similar to the U.S., value stocks handily outperformed growth stocks.

• Emerging market stocks fell more than 3%, pulled lower by the big AI names in South Korea and Taiwan. China was an outlier, rising 9% in the month.

Fixed Income Markets⁴

• The steady but small rise in interest rates was enough to push U.S. bond market returns to the negative for the month.

Specialty Markets⁵

• REITs delivered positive returns in July as demand continues to improve across multiple real estate segments. Commodity index returns were positive, largely due to the rise in oil prices and select agricultural products.

Sectors⁶

• Energy (+12.6%) was the highest performing sector in July, driven by the jump in oil prices. Other positive sectors were Financials, Real Estate, and Healthcare. Technology and Industrials were both down more than 3%.
  

Here is our Economic Indicator Dashboard which shows 11 indicators in growth mode with the exception of job sentiment.

Key Takeaways:

• Earnings delivery and market leadership are continuing to broaden out to a larger group of market constituents; we believe a focus on earnings should be a part of any equity investor's playbook when trying ascertain in market leadership in the coming months.
• Corporate commentary from key industrial bellwethers suggests a broader capex cycle is finally underway, a view confirmed by key datapoints such as ISM New Orders and the ClearBridge US Recession Dashboard broadly, which maintains its overall green signal this month and had no changes.
• Although the market may still be undergoing a period of digestion following the second quarter’s strong gains, we believe the path of least resistance for stocks is higher in the second half of the year with earnings continuing to power the way. 

see chart here

I hope you find this information helpful along your financial journey.

Please let me know if you have any questions.

 

Previous Commentary:

• May 2026 Market Commentary
• April 2026 Market Commentary
• March 2026 Market Commentary
• January 2026 Market Commentary
  

Disclosures and references:

 Investment Advisory Services offered through Global Retirement Partners, LLC DBA Connor & Gallagher OneSource, an SEC registered investment advisor.  

1-6 All data referenced in the table and comments supplied by Morningstar.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Global Retirement Partners, LLC or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision, and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for informational purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. Connor & Gallagher OneSource doesn’t provide research on individual equities. All information is believed to be from reliable sources; however Connor & Gallagher OneSource makes no representation as to its completeness or accuracy.

*Securities offered through LPL Financial, Member FINRA & SIPC.  Investment advisory services offered through Global Retirement Partners, LLC DBA Connor & Gallagher OneSource, an SEC registered investment advisor.  Connor & Gallagher OneSource and Connor & Gallagher Benefit Services are separate entities from LPL Financial.