With Juan Van Deventer
July was a more challenging month for markets after the strong recovery seen earlier in the year. Investors became more cautious as tensions in the Middle East increased again, causing oil prices to rise sharply. At the same time, some of the excitement around artificial intelligence and technology stocks began to cool, leading to greater market volatility.
Australian shares remained relatively resilient and finished the month slightly higher, while U.S. markets were largely flat overall.
What Moved the Markets – Australia
- Australian shares remained relatively stable throughout the month.
- Higher oil prices helped support energy companies.
- Financial stocks performed well.
- Investors remained focused on inflation and interest rate expectations.
What Moved the Markets – U.S. & Global
- Technology and AI-related shares experienced increased volatility.
- Investors questioned whether large AI spending would translate into future profits.
- Middle East tensions pushed oil prices higher.
- Global markets delivered mixed results, with energy stocks outperforming.
Commodities & Defensive Assets
- Oil: Prices rose sharply during July as concerns about supply disruptions returned.
- Gold: Prices moved slightly higher as investors sought safer assets.
Market Snapshot – May 2026
| Market | General Move |
|---|---|
| ASX 200 | Slightly Higher |
| S&P 500 (US) | Flat to Lower |
| Oil (Brent) | Higher |
| Gold | Slightly Higher |
What This Means for Investors
July was a reminder that markets can shift quickly from rewarding growth to reassessing risk. While technology and AI-related investments remain important drivers of long-term growth, investors are becoming more selective about valuations, spending and the path to sustainable returns.
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