Market developments
Equities: Global equities advanced over the week, led by strong U.S. earnings and trade optimism, thanks to gains in tech, AI-related stocks and standout results from banks and chipmakers like NVIDIA, AMD, TSMC and others as Alphabet communicated an increase in AI related spending this year. Japan also had a strong week, led by the auto industry as a trade deal was struck between them and the U.S.
Fixed Income: Bond markets were relatively soft but stable. Treasury yields eased slightly and the Bloomberg U.S. Aggregate index posted minimal weekly gains. Broader narratives continue to factor sticky inflation, limited near-term Fed rate-cut expectations (July cut probability ~5%, September less than 60%) and ongoing tariff-related uncertainty.
Commodities: Energy markets saw oil prices fall this week, precious metals like gold also eased slightly from elevated levels. Copper built on it’s strong 2025 and is now up over 40% YTD.