Equity Capital Markets Update, July 2026

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U.S. Market Commentary

Key U.S. Macro Themes

Broad-Based Decline from Record Levels

• U.S. equities finished July mixed as a sharp AI-driven selloff and renewed U.S.-Iran hostilities were offset by a late-month rally in cyclicals, with long-term Treasury yields ending at multi-year highs.
• Indices entered July near record highs after their best quarter since 2020 but ended mixed
• The Nasdaq fell 3.2% and the Russell 2000 declined 3.1%, while the S&P 500 was nearly flat at (0.1%) and the Dow gained 0.3% for a fourth straight winning month
• The Nasdaq briefly entered correction territory on July 29 before recovering into month-end

Earnings Delivered, But Multiples Did Not

• Blended Q2 earnings growth reached 37.9% as of July 24, the highest since Q3 2021, or 25.9% excluding Alphabet, while revenue grew 13.2%
• Results diverged sharply: Amazon rose after reporting, Apple fell on weaker China and Services performance, and Microsoft gained 16% on Azure growth

Hawkish Hold and Renewed Energy Shock

• The FOMC held rates at 3.50%–3.75% on July 29 in a 9–3 vote, with three regional presidents favoring a 25bp hike
• The 30-year Treasury yield reached 5.25%, its highest since 2007, while the 10-year topped 4.7%
• June CPI rose 3.5% YoY but fell 0.4% MoM, with core at 2.6%
• Brent briefly exceeded $100 before settling at $88.46 on July 31

Backdrop for Equity Capital Formation

U.S. Equities Overview

Public Equity Markets

• Major U.S. equity indices ended July mixed after entering the month near record highs, with the SPX nearly flat and the Nasdaq and Russell 2000 both declining amid capital rotation out of AI-linked technology, with long-term yields reaching multi-year highs leaving the cost of capital as the governing variable into the remainder of the year

Equity Capital Markets

• 12 IPOs priced in July for approximately $31.6B in proceeds
• Notable transactions:
  • SK Hynix – $26.5B IPO – (3.5%) offer-to-current
  • Bending Spoons – $1.7B IPO – +21.4% offer-to-current
  • Csquare – $1.2B IPO – (5.0%) offer-to-current
  • Jersey Mike’s Subs – $1.0B IPO – Flat offer-to-current
  • Reformation – $210.9M IPO – +8.1% offer-to-current
  • Neutron Holdings – $173.9M IPO – +18.6% offer-to-current
  • Scribe Therapeutics – $148.0M IPO – +29.9% offer-to-current

Issuance Has Reopened From Cycle Lows

Quality, Not Volume, Is Driving Aftermarket Performance

SPAC Market

• 135 SPAC IPOs priced year-to-date in 2026, against a 2019-2025 average (excluding 2020 and 2021) of 75
• De-SPAC activity continues to stabilize toward pre-pandemic levels, with focus on experienced sponsors and underwriting discipline in the de-SPAC market

Source: Federal Reserve; BLS; FactSet Earnings Insight July 2026; Bloomberg; Reuters. Issuance figures exclude SPAC IPOs and closed-end funds. Market data as of 7/31/26.