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Last updated: July 28, 2026, 8:30 AM ET

Global Markets Digest

Tech Stocks Under Pressure Amid AI Spending Doubts and Chip Selloff

Technology stocks globally, with semiconductor shares leading the rout. South Korea temporarily halted trading as its benchmark index closed more than 10% lower, a move mirrored in Europe and other Asian markets. Concerns over the durability of the artificial intelligence trade and increased competition from China fueled the selloff. Shares in companies like United Microelectronics and others in the sector, prompting analysts to question the sustainability of AI-driven growth and leading to fresh doubts about AI spending. The global chip rout has not yet presented a buying opportunity, according to GAM’s Paul Markham, as investor positioning remains crowded. Singapore's central bank warned that uncertainty over sustaining massive AI investments poses a key risk for global growth and financial markets.

Corporate Earnings and Outlooks Show Mixed Performance

Several companies. Sherwin-Williams lifted its outlook as profit and sales climbed, now expecting net sales to grow in the mid- to high-single-digit percent range. Corning posted higher profit and sales in the second quarter, driven by demand for its AI optical products. JetBlue Airways, however due to higher jet fuel costs, although higher fares and strong customer demand partially offset the impact. Royal Caribbean Group as geopolitical uncertainty hurt bookings. Coca-Cola saw its profit rise on higher concentrate sales and pricing. PayPal boosted profitability, indicating its turnaround is progressing. Centene lifted its guidance for the year after revenue and profit growth were driven by strength in its core healthcare lines. Hilton also raised its outlook on higher revenue and hotel rates, reporting a second-quarter profit of $482 million. Singapore Airlines swung to a loss despite higher revenue, dragged by soaring jet fuel prices and losses from Air India. Philips shares, wiping out year-to-date gains. Barclays raised its key targets for group income and net interest income, benefiting from its global markets unit and investment banking fees. Unilever saw sales volumes rise at the fastest rate in 16 years, with emerging markets driving growth for brands like Dove and Rexona. Aerospace supplier Safran also lifted its guidance due to strong demand for civil engines and parts. Mercedes-Benz, however amid a slump in the Chinese market.

Energy Markets Navigate Supply Concerns and Geopolitical Tensions

OPEC+ is expected to after September, as the group assesses the impact of the Iran war on supply. Global diesel prices are rising, with refiners prioritizing it over gasoline amid near-record margins. Tankers are diverting to Egypt as Houthi threats disrupt Red Sea trade, with observable traffic at Saudi Arabia's key export hub dwindling as tankers divert. The ongoing conflict and geopolitical tensions continue to impact energy markets, with prices remaining in a precarious equilibrium as demand and supply remain off-balance. Wildfires in France, particularly near Bordeaux, are also posing risks to vineyards and the broader French wine industry.

Financial Institutions and Markets Show Resilience Amid Uncertainty

HSBC strategists see strong earnings growth and attractive valuations as factors keeping risk assets resilient despite a challenging inflation backdrop. However, investors are seen as "far too complacent" on Additional Tier 1 bonds, the riskiest type of bank debt, with spreads appearing too tight according to Man Group on AT1 risks. Man Group reported $2.3 billion in net inflows into its absolute return division, with total assets hitting a 16-year high. Treasuries were set for their third day of gains as oil prices retreated on optimism about Iran talks potentially resuming tanker traffic around the Strait of Hormuz. Fund managers including Invesco and Rathbones have reduced their holdings in UK government debt due to concerns about inflation and political instability. Dubai's financial hub, DIFC, has surpassed 10,000 active registered companies, underscoring its attractiveness to global firms despite heightened geopolitical risks.