Meanwhile, we compare US debt added under each president and explore the Swiss franc’s emergence as a new funding currency for carry trades. Each week, the Syz investment team takes you through the last seven days in seven charts.

Major U.S. equity indexes finished the week lower as elevated Treasury yields, renewed U.S.-Iran tensions, higher oil prices, and weakness in semiconductor and artificial intelligence (AI)-related shares broadly weighed on investor sentiment. Mixed takeaways from several retail earnings reports also appeared to contribute to the week’s cautious tone. The Nasdaq and Russell 2000 Index shed 2.05% and 1.65%, respectively. The Dow Jones Industrial Average held up best, falling 0.85%. Long-term U.S. Treasury yields rose early in the week, with the yield on the 30-year U.S. Treasury bond reaching its highest level since 2007. Rising concerns around the U.S. fiscal outlook and heavy government and corporate debt issuance including financing tied to AI capex appeared to contribute to the sell-off.

Flash note

The rise in global long-term rates gains momentum and weighs on bond-market performance

Meanwhile, Buffet’s “Never bet against America" still rings true. Each week, the Syz investment team takes you through the last seven days in seven charts.

Major U.S. stock indexes finished the week mixed as investors weighed easing concerns about inflation and Fed policy and some favorable AI-related earnings news against rising oil prices, continued uncertainty surrounding the Strait of Hormuz, and weaker-than-expected consumer data.

Flash note

Interest rates pulled back after their July rise, while the US tech sector continues to underperform amid massive hyperscaler debt issuance

China's gold buying is reaching extraordinary levels, while the scariest number in the AI boom is the one that never shows up on a balance sheet. Each week, the Syz investment team takes you through the last seven days in seven charts.

The Nasdaq led with its best week since April, supported by solid earnings, renewed AI enthusiasm, and hopes for a reopening of the Strait of Hormuz. The U.S. labor market weakened sharply. Payrolls fell by 23,000 in July versus expectations for an 80,000 gain, while previous months were revised lower. Job openings also declined and ADP private payroll growth slowed to just 44,000. Unemployment nevertheless edged down to 4.1%. Rate-hike expectations declined: following the weak jobs report, the probability of a September Fed hike dropped to roughly 42% from 55%. U.S. business activity remained resilient. U.S. manufacturing PMI jumped to 55.6, its highest since May 2022.