July's Market Turbulence: What Actually Happened (And Why It's Not All Bad)

If you checked your account this month and felt a little uneasy, you're not alone. July was a choppy month for the markets, and a lot of that had to do with things happening well outside of Canton — geopolitical tension overseas, a new face at the Federal Reserve, and a bond market that didn't love the uncertainty. Here's what actually happened, in plain terms.

What drove the volatility

Renewed tension in the Middle East pushed oil prices higher, which fed straight into inflation worries. On top of that, new Fed Chair Kevin Warsh held his first couple of press conferences and left investors uneasy. He made clear the Fed has zero tolerance for elevated inflation, but he wouldn't say what the Fed plans to actually do about it — no hints on rate cuts, hikes, or timing.

Bond investors reacted to that uncertainty by selling off long-term Treasury bonds, which pushed their yields up to levels we haven't seen since 2007. Bond prices and bond yields move in opposite directions — when investors sell bonds, prices fall and yields rise. Higher yields mean it costs the government, and businesses, more to borrow money, which eats into profits and makes investors a little less willing to pay today's prices for a company's future growth. That tends to weigh on stocks, especially the high-growth tech names that had run up so much earlier this year.

By the numbers, the S&P 500 finished July basically flat, the Nasdaq Composite slipped a little over 3% for the month, and the Dow actually squeezed out a small gain — its fourth straight positive month.

The hopeful part

The last week of July looked a lot different than the three before it. As the big tech companies started reporting earnings, the story shifted from “how much are they spending on AI” to “is that spending actually paying off” — and for several of them, the answer was yes. Strong cloud growth drove a sharp rally in some of the largest tech names, and the major hyperscalers reaffirmed plans to keep investing heavily in AI infrastructure through the rest of the year. That's a vote of confidence, not a retreat.

It wasn't just Big Tech, either. Several companies across healthcare, financials, and industrials posted earnings that beat expectations and, in some cases, raised their outlook for the rest of the year. Healthcare and financial stocks actually touched fresh all-time highs this month — a good reminder that “the market” is never just one story.

The bottom line for Cherokee County investors

Markets don't move in a straight line, and July was a good example of that. It's also worth remembering: summer months have historically tended to be choppier for stocks, and pullbacks are a normal, healthy part of how markets climb over time — even in years that finish strong. A bumpy stretch isn't the same thing as a broken market.

If the last couple of months have you second-guessing anything about your plan, reach out. That's exactly what I'm here for. Call me at (678) 880-6267 or click the button below to schedule a call or visit.

The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. Investing involves risk, including possible loss of principal. All indices are unmanaged and may not be invested into directly.