1. US Direct Lending Volume Falls ~55% in Q2 Even as Fundraising Rebounds

(Reuters / PitchBook-LCD, 9 July 2026)

Direct lending by US private credit firms fell sharply in the second quarter even as fund-raising by such firms rebounded, underscoring a divergence between capital raised for the asset class and deal flow to absorb it. US direct-lending volume fell about 55% quarter-on-quarter to $33.59 billion in Q2 from $74.67 billion in Q1 — the lowest level since Q2 2023, according to PitchBook/LCD data. By contrast, North America-focused closed-end direct-lending funds raised $16.25 billion in Q2, up from $1.3 billion in Q1, the highest in two years, according to Preqin data. The shift follows increased scrutiny after defaults, concerns over software exposure and redemption pressure from retail investors in some semi-liquid vehicles, while EY's global asset management leader attributed the slowdown to softer M&A activity, competition from the broadly syndicated loan market, and greater selectivity among managers.

2. HSBC Halts Lending to Riskier Private Credit Funds

(Bloomberg / Financial Times, 7 July 2026)

HSBC Holdings is halting lending to riskier private credit funds after high-profile corporate bankruptcies exposed shaky underwriting standards in the industry; Europe's largest bank informed clients in recent weeks that it will not renew certain credit facilities or provide back leverage, the Financial Times reported, citing people familiar with the matter. The move adds to a broader pattern of bank counterparties reassessing leverage extended to private credit vehicles, and comes alongside separate data showing life insurers have grown allocations to private credit significantly, with the median portfolio allocation reaching 9% of total assets, up 110% since 2021.

3. Semiconductor Stocks: Sell-Off Then Partial Recovery; SK Hynix Lists in US

(Forbes / Trading Economics / Distilling Intelligence, 8–10 July 2026)

Semiconductor stocks experienced a sharp downturn wiping out over a trillion dollars in market value as Wall Street questioned the sustainability of record AI capital spending; concerns included dot-com-era valuations, a hawkish Fed, and doubts about AI infrastructure returns. At the trough, the Philadelphia Semiconductor Index was off 10.8%, the VanEck Semiconductor Index had fallen 13% over ten sessions, and Reuters estimated roughly $1.3 trillion in semiconductor market value had been wiped out. Markets partially recovered by 9 July: US stocks closed higher on Thursday, with the S&P 500 rising 0.8% and the Nasdaq advancing 1.3%, as renewed strength in chipmakers offset uncertainty; sentiment was buoyed by strong demand for SK Hynix's US share offering, which was more than seven times oversubscribed. Separately, SK Hynix raised $26.5 billion in its US debut, marking the largest foreign listing in American history, while simultaneously committing $8.6 billion to acquire advanced EUV lithography equipment from ASML.

4. Meta Targets Own AI Chip; APAC Semiconductor-Driven Volatility

(Trading Economics / Saxo Hong Kong, 6–9 July 2026)

Meta surged 4% after announcing it will target production of its own AI chip by September. The announcement reinforced a broader trend of hyperscaler vertical integration in AI hardware. In the APAC region, chip-related news drove pronounced market swings: the Kospi jumped 5.8% to 8,088, rebounding from a prior 7.9% plunge, as Samsung and SK Hynix each climbed over 10% on reports that Anthropic is in talks with Samsung on a custom AI chip. Hong Kong's Hang Seng rose 1.3% to 23,350, led by BYD (+6.5%) and a 2%+ gain in the Hang Seng Tech Index, with mainland investors net buying HK$4.54 billion via Stock Connect.

5. Fed Holds at 3.50%–3.75%; Hike Risk Builds for July 29 Meeting

(Trading Economics / Motley Fool Money, 8–9 July 2026)

The Fed kept the federal funds rate unchanged at 3.50%–3.75% in June; minutes from the FOMC meeting showed officials were divided, with participants generally assessing that upside risks to inflation remained elevated and a few noting there was a case for raising interest rates. Most participants pointed to scenarios in which inflation would remain elevated due to strong AI-related demand, Middle East conflict, or tariff effects, and in such scenarios almost all indicated that some policy firming would likely be warranted. Futures trading suggests a 0% probability of a cut at the 29 July meeting per the CME FedWatch Tool; the real debate is whether rates hold or increase, with the futures market showing a 74.9% probability of a hold and 25.1% odds of a quarter-point hike. The Fed's June Summary of Economic Projections revised PCE inflation to 3.6% for 2026 (up from 2.7%), with core PCE at 3.3%.

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