28 Jul 2026 - Glenmore Asset Management - Market Commentary

Global equity markets were again volatile in June, highlighted by a sharp intra-month reversal in the tech sector, the reopening of the Strait of Hormuz and the launch of the largest IPO in history - SpaceX. Despite a strong start to the month, the S&P 500 and NASDAQ finished -1.1% and -0.2% lower, respectively. Returns were weighed down by disappointing updates from some major tech companies (Broadcom, Adobe, Oracle) and a more hawkish than expected speech from Kevin Warsh, during his first meeting as the new chairman of the US Federal Reserve. International markets outperformed their US peers, with the Euro Stoxx 50 and FTSE 100 rising +4.6% and +0.8% during the month, respectively.

As noted earlier, the debut of SpaceX garnered much attention. The company raised US$75b, almost 3x larger than the prior record held by Saudi Aramco and made Elon Musk the world's first trillionaire. After rocketing higher during its first few days, SpaceX finished the month +27% higher.

Domestic markets also outperformed the US, with the ASX All Ords Acc Index rising +0.4%. Sector returns were sharply divergent. Energy was the largest underperformer, declining - 9.0%, as the crude oil price fell ~20% following the Iran ceasefire deal. On the flip side, Consumer Staples (+12.3%), Consumer Discretionary (+12.1%), and Real Estate (+1.8%) outperformed, with the RBA's decision to hold rates providing some support to rate-sensitive sectors. Small caps underperformed vs large caps, with the ASX Small Ords Acc index falling -2.0%.

In bond markets, the US 10-year bond yield rose +3 basis points (bp) to 4.47%, whilst its Australian counterpart fell - 11bp to 4.72%. The Australian dollar fell during the month to US$0.69, implying a decrease of 0.3 cents, pressured by softer commodity prices and a firmer US dollar.