Global equity markets were quietly choppy this week as investors grappled with a rise in global bond yields, a renewed escalation in U.S.-Iranian hostilities and a shifting outlook for Fed policy.U.S. equities came under pressure early in the week as the global bond selloff and higher energy prices challenged elevated valuations, although stocks recovered as the week progressed, with theS&P 500, Nasdaq 100, and Russell 2000 posting modest gains of under a half a percent.

Global markets were relatively quiet this past week with most major macro asset classes modestly reversing some of the prior week’s sharper moves in a quiet consolidation. The S&P 500 and Nasdaq 100 each rose about a half of a percent, while the small-cap Russell 2000 fell 1.5%.

Equity markets continued their march higher last week, as the S&P500 and Russell 2000 hit new all-time highs for the second consecutive week. The NASDAQ came within 2% of its early June all-time high, though it continues lagging its counterparts.

The dominant theme in global equity markets this past week was the intersection of earnings season, monetary policy and the ongoing repricing of the semiconductor sector. With more than one-third of the S&P 500 reporting quarterly results, for the most part corporate America continued delivering resilient earnings growth despite a backdrop of higher interest rates and persistent inflation.

The dominant theme in U.S. equity markets last week was the sharp repricing of hyperscalers, prompted by investors showing little tolerance for rising capital expenditures tied to AI infrastructure.

A sharp selloff in global memory chip stocks accelerated through the week, sparking concerns over the sustainability of the artificial intelligence investment cycle, while renewed hostilities in the Middle East and shifting Federal Reserve expectations drove broad sector rotation across global equity markets.