--- title: Cloud Beats, Capex Doubts and a Korean Rollercoaster description: Global equities advanced despite the week between 24-31 July despite some by sharp divergences. Big Tech earnings split investors between AI capex winners and losers, the Federal Reserve held rates amid its first multi-member dissent in decades, and oil extended its climb on escalating Middle East tensions. Korean and Taiwanese equities were rocked by extreme volatility as leveraged AI-related positioning unwound and then violently reversed, while resilient eurozone growth data and broad emerging-market strength helped underpin the wider advance. 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If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) ### Cloud Beats, Capex Doubts and a Korean Rollercoaster Global equities advanced despite the week between 24-31 July despite some by sharp divergences. Big Tech earnings split investors between AI capex winners and losers, the Federal Reserve held rates amid its first multi-member dissent in decades, and oil extended its climb on escalating Middle East tensions. Korean and Taiwanese equities were rocked by extreme volatility as leveraged AI-related positioning unwound and then violently reversed, while resilient eurozone growth data and broad emerging-market strength helped underpin the wider advance. This report examines the key drivers behind the past week's market moves, with a focus on US mega-cap earnings dispersion, the Fed's policy signals, and the forces behind Asia's dramatic swings. [**Jakub Dubaniewicz**](https://blog.syzgroup.com/fast-food-for-thought/author/jakub-dubaniewicz) **-** **Monday, 08/03/2026** | - [![Pdf](https://blog.syzgroup.com/hubfs/pdf%20(1).png)](https://blog.syzgroup.com/fast-food-for-thought/Equity%20Weekly%203-9%20April%202026) - - - - ## **The Chart of the week**   **South Korea Stock Market Year to Date** ![](https://blog.syzgroup.com/hs-fs/hubfs/image-png-Aug-03-2026-12-46-36-6080-PM.png?width=553&height=315&name=image-png-Aug-03-2026-12-46-36-6080-PM.png) *Source: JP Morgan, Bloomberg*   ## **What happened last week?**   **Global markets** Global equities extended their advance, with the MSCI AC World index rising 1.4% from Friday 24 July to Friday 31 July 2026. The past week was dominated by the reporting season for America's largest technology companies, a Federal Reserve that held rates but revealed rare internal dissent, and an oil market still absorbing the consequences of the widening conflict between the US and Iran. The past week crystallised a theme that has been building all earnings season: the market is no longer rewarding AI spending unconditionally, but is instead differentiating sharply between companies that can show a credible return on that spending (Amazon, Microsoft) and those still asking for patience (Meta, Apple). The net effect was a market-cap reshuffling within the Magnificent Seven that lifted the S&P 500 by 1.1% and the Nasdaq Composite by a more modest 0.5%, with mega-cap dispersion rather than a uniform tech rally doing the heavy lifting. Away from technology, the week's other defining feature was the Fed's decision to hold its policy rate steady for a fifth consecutive meeting. That outcome was widely expected, but it was overshadowed by a 9-3 vote split, the first multi-member dissent at the Fed in over three decades. New Chair Kevin Warsh struck a cautious tone, emphasising elevated uncertainty tied in part to the ongoing Middle East conflict. Investors were left unsure whether the dissenters were pushing for earlier cuts or greater vigilance on inflation, and Treasury yields drifted higher through the week as a result. Crude oil continued its month-long ascent. The escalating confrontation between Washington and Tehran, including reported attacks on tankers transiting the Strait of Hormuz, pushed prices to fresh highs, even as equity markets largely looked past the geopolitical risk premium. Sector leadership reflected this bifurcated backdrop. **US** US equities advanced modestly at the index level, but beneath the surface the week told a story of extraordinary dispersion. Microsoft and Amazon both surged after reporting cloud growth that comfortably exceeded expectations, easing fears that hyperscaler capital spending was outrunning monetisation. Apple and Meta, by contrast, fell heavily, the former on a disappointing near-term revenue outlook tied to component shortages, the latter on capital expenditure guidance that investors judged open-ended relative to the cash flow being generated. The Roundhill Magnificent Seven ETF still rose comfortably on the week, underscoring that the winners outweighed the losers in aggregate. However, the Russell 2000's near-flat performance and the S&P Mid Cap 400's modest decline confirmed that the past week's rally was a large-cap, idiosyncratic story rather than a broad risk-on move. By sector, Software led performance decisively, driven by Microsoft. Consumer Discretionary sector also rose, buoyed by resilient spending and strong cloud results at Amazon. Semiconductors fell sharply, Utilities and Real Estate were pressured by the firmer rate backdrop, and Transportation and Industrials softened alongside rising energy costs. **Europe** European equities had a strong week, helped by an upside surprise in Thursday's flash estimate of second-quarter eurozone GDP, which grew 0.4% quarter-on-quarter against expectations of roughly half that pace, easing fears of a technical stagnation and reinforcing the region's resilience despite elevated energy prices. Germany's DAX led major markets higher, with France's CAC 40 and Spain's IBEX 35 also posting solid gains, while UK equities advanced more steadily. Banks were among the best-performing sectors, aided by a run of robust quarterly results and the tailwind from firmer growth data and a steeper yield curve. Defence-related names extended their multi-month outperformance as the Middle East conflict kept the case for higher European military spending firmly in view. Construction and materials also performed well on the improved growth outlook. Utilities were the clear laggard, pressured by rising bond yields, while technology stocks lagged the broader market, tracking weakness in US semiconductors rather than reflecting any domestic setback. **Rest of the world** Asian equity markets endured a week of exceptional volatility. An AI-driven deleveraging shock swept through the region's semiconductor complex before reversing just as sharply. Korean equities were the epicentre. Samsung Electronics and SK Hynix suffered a sharp, multi-session sell-off, amplified by heavy retail use of leveraged single-stock ETFs and repeated program-trading halts. That sell-off gave way to a record one-day rebound on Friday, when both chipmakers surged between 27% and 30% as strong US hyperscaler earnings restored risk appetite. The scale of that final-day move was enough to leave the Kospi higher for the week overall. Even so, the round trip underscored how tightly, and precariously, Korean equities are now tied to the global AI trade. Taiwan experienced a near-identical shock. TSMC and the broader supply chain sold off heavily over the same sessions, still digesting the sharply raised capital spending outlook The market then staged its own record rebound on Friday, as the same wave of relief swept through Seoul and Taipei together. Taiwan's bounce, however, was not quite large enough to recover the week's earlier losses, leaving the TAIEX marginally lower. The difference from Korea was one of degree, not direction. Chinese equities were comparatively calm by contrast. The market advanced steadily, lifted by the reaffirmation of aggressive AI capital spending plans from US hyperscalers, an effect also visible in the strong gain for emerging-market internet exposure more broadly. Japanese and Indian equities also advanced.   --- ## **Our view on equity** **Equity asset class** We maintain equity exposure at the upper end of our neutral allocation range. **Earnings** After a strong Q1 earnings season and upward guidance revisions, 2026 earnings expectations have been revised higher across all major regions and are now running at double-digit growth rates. Operating margins have reached all-time highs and continue to accelerate. **Valuation** Although equity prices have reached new record highs, forward P/E multiples have edged lower because EPS growth has outpaced share price gains. Valuations remain above historical averages in the S&P 500 and Nikkei, while the STOXX Europe 600 and Asia ex-Japan look relatively more attractive. **Risks** The main risk to this constructive view is a renewed rise in rates and inflation expectations, which could compress multiples and pressure valuations.   --- #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Central Banks Deliver on a Well-Flagged Hawkish Pivot](https://blog.syzgroup.com/fast-food-for-thought/central-banks-deliver-on-a-well-flagged-hawkish-pivot?hsLang=en) Fed and BoJ hikes, an oil-driven inflation scare, and an AI-safety debate drove sector rotation across global equities over the past week. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 21/09/2026 [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Oil, Inflation and Trade Tensions Rattle Equities as Memory Chips Hold the Line](https://blog.syzgroup.com/fast-food-for-thought/oil-inflation-and-trade-tensions-rattle-equities-as-memory-chips-hold-the-line?hsLang=en) Global equities fell on oil, inflation and trade risk, while a Korea-led memory-chip rally offset losses in EM and rotated tech away from Nvidia. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 14/09/2026 [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Payrolls Surprise and Middle East Tensions Revive the Rate Hike Debate](https://blog.syzgroup.com/fast-food-for-thought/payrolls-surprise-and-middle-east-tensions-revive-the-rate-hike-debate?hsLang=en) Global equities were roughly flat over the week to 4 September 2026, as a much stronger than expected US August jobs report and renewed US-Iran tensions pushed oil prices and bond yields higher, reviving the case for a September Fed rate hike. The repricing hit European equities harder than the US, with German and French markets underperforming on rate- and energy-sensitive exposure, while banks and energy stocks outperformed globally. Within US tech, a sharp divergence emerged inside the Magnificent Seven, driven by company-specific news at Meta and Nvidia rather than a shared theme. Brazil was the standout market of the week, rallying on rate-cut expectations and firmer oil prices. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 07/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment?hsLang=en) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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