1. US Direct-Lending Volume Slumps Even as Fundraising Rebounds

Direct lending by US private credit firms fell sharply in Q2 2026 even as fund-raising by such firms rebounded, underscoring the gap between capital raised and deal flow to absorb it. US direct-lending volume fell approximately 55% quarter-on-quarter to $33.59 billion in Q2, the lowest level since Q2 2023, according to PitchBook/LCD data. PE-backed direct-lending volume fell to $19.40 billion in Q2 from $44.61 billion in Q1. Meanwhile, the fundraising side remained active: Crescent Capital Group collected $10.8 billion for its fourth US direct lending fund — exceeding its initial target by more than $2.5 billion and representing the largest fundraise in the firm's history. The slowdown reflected softer M&A and buyout activity, borrower delays, competition from the broadly syndicated loan market, and greater selectivity among private credit managers, according to EY.

Sources: Reuters / PitchBook-LCD, 9 July 2026; Alternative Credit Investor, 10 July 2026

2. HSBC Pulls Back from Riskier Private Credit

HSBC Holdings is halting lending to riskier private credit funds after high-profile corporate bankruptcies exposed shaky underwriting standards in the industry, the Financial Times reported. Europe's largest bank informed clients in recent weeks that it will not renew certain credit facilities or provide back leverage. The move adds to a broader tightening of bank-to-fund financing. The shift follows increased scrutiny after defaults, concerns over software exposure, and redemption pressure from retail investors in some semi-liquid vehicles.

Sources: Bloomberg / Financial Times, 7 July 2026

3. SK Hynix Makes History with $26.5 Billion US Listing; Samsung Posts Record Profits

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. SK Hynix American depositary receipts jumped 12.8% above their offering price. Separately, Samsung Electronics reported a 19-fold increase in quarterly operating profit — a milestone that initially fuelled market fears of a peak in the semiconductor cycle and triggered a significant sell-off in Korean stocks. South Korea's Kospi closed 4.91% lower, with the Korea Exchange having earlier activated a circuit breaker and paused trading for 20 minutes as the index fell more than 8% at one point.

Sources: Distilling Intelligence Semiconductors Briefing, 10 July 2026; Trading Economics, 10 July 2026; CNBC, 7 July 2026

4. AI Chip Stocks Endure a Trillion-Dollar Valuation Reset

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 stretched valuations, a hawkish Fed, and doubts about AI infrastructure returns. The Philadelphia Semiconductor Index fell 10.8%, the VanEck Semiconductor Index dropped 13% over ten sessions, and Reuters estimates roughly $1.3 trillion in semiconductor market value was erased, with Intel, Micron, AMD, and Samsung all under pressure. The sell-off partially recovered: on 10 July, Nvidia advanced 4% and AMD rose 2%, while Meta jumped 6% after research firm SemiAnalysis published a positive report on its AI compute business. Micron Technology separately raised its US investment target to $250 billion through 2035, breaking ground on a major New York facility and securing long-term supply deals with Ford and Meta.

Sources: Forbes, 8 July 2026; Trading Economics, 10 July 2026; Distilling Intelligence, 10 July 2026

5. Fed Holds Rates, Dot Plot Signals Possible Hikes; July Meeting in Focus

The Fed kept the federal funds rate unchanged at 3.50%–3.75% for a fourth consecutive meeting in June 2026 — the first meeting under new Fed Chair Kevin Warsh. New economic projections show nine officials see at least one rate hike this year, with six anticipating at least two; nine expected no move or a cut. The Fed's inflation outlook shifted notably: the June SEP projects PCE inflation at 3.6% for 2026, core PCE at 3.3%, and real GDP growth at 2.2%. Chair Warsh also indicated the central bank will no longer provide traditional forward guidance on future interest-rate decisions, signalling a shift in communication approach. As of early July, futures markets were pricing a path that rises to approximately 3.8% by October 2026 and approaches 4% around year-end. The next FOMC meeting is scheduled for 28–29 July.

Sources: Trading Economics, 8 July 2026; Forbes / FOMC SEP, July 2026; StreetStats, 2 July 2026

This news roundup is produced by 1Oak Research for general informational and educational purposes only. Nothing in it constitutes investment advice, a solicitation, or a recommendation to buy, sell, or hold any security or financial instrument. All investments carry risk, including the possible total loss of capital. 1Oak Research is not a licensed or regulated financial entity.