Semiconductor Selloff Cascades From Asia to Wall Street

A sustained sell-off in chip stocks deepened this week, spreading from Korean and Japanese markets into U.S. trading. On 28 July, South Korea's KOSPI dropped as much as 10.9%, triggering its ninth circuit breaker of 2026, weighed down by a broad retreat in technology stocks. Japan's Nikkei tumbled 3.95%, while the Hang Seng edged higher, buoyed by easing geopolitical risk. In the U.S., concerns over circular AI financing arrangements and intensifying competition from Chinese chipmakers continued to pressure the sector, with Micron, Nvidia, AMD, and SK Hynix posting steep losses — putting the Philadelphia Semiconductor Index on track for its worst month in more than a decade. (Sources: Investrade Morning Preview, 28 July 2026; CNBC Markets Live, 28 July 2026)

Apple Hits $5 Trillion Market Cap; Big Tech Earnings in Focus

Apple briefly crossed a $5 trillion market capitalisation on 28 July, a day after surpassing Nvidia to become the world's most valuable publicly traded company. Shares of the iPhone maker have risen approximately 25% year-to-date, outpacing megacap peers. Markets remain focused on the broader Big Tech earnings week: hyperscalers including Alphabet, Amazon, Meta, and Microsoft are collectively channelling hundreds of billions in capital expenditure into AI infrastructure, with results due over coming days expected to shape near-term risk sentiment. (Source: CNBC, 28 July 2026)

Federal Reserve Holds; September Hike Scenario Firms Up

The FOMC is widely expected to leave the federal funds rate unchanged at 3.50%–3.75% at its 28–29 July meeting. The Federal Reserve's July 2026 Monetary Policy Report noted that Treasury yields have risen since the start of the year — with the largest increases at shorter maturities — as market expectations of a higher rate path pushed up real interest rates. The Fed cited "inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks" including energy. Markets are now pricing a meaningful probability of a hike as soon as September, with the June Summary of Economic Projections projecting PCE inflation at 3.6% for 2026. (Sources: Federal Reserve Monetary Policy Report, July 2026; CNBC, 27 July 2026)

Private Credit: LPs Signal Diversification Beyond Direct Lending

New research from Rede Partners, published 23 July 2026, found that 70% of limited partners expect diversification beyond direct lending to become the leading trend in private credit over the next 12 months. While direct lending remains a core allocation for 62% of surveyed LPs, only 6% plan to increase exposure to mid and upper-mid-market direct lending strategies. The finding reflects broader structural shifts: U.S. direct-lending volume fell approximately 55% quarter-on-quarter to $33.59 billion in Q2 2026, its lowest level in several quarters, even as the asset class continues to attract capital — with Barings, Churchill Asset Management, and Crescent Capital each closing large fundraises in H1 2026. (Sources: Alternative Credit Investor, 23 July 2026; Reuters via 93.3 The Drive, 9 July 2026; Alternative Credit Investor, 10 July 2026)

Singapore Growth Solid; APAC PMIs Signal Mixed Momentum

Singapore's economy expanded 5.7% year-on-year in Q2 2026, ahead of the 5.5% consensus estimate and supported by manufacturing growth of 12.2%, though the pace moderated from 6.3% in Q1. The Singapore dollar held steady following the data, with the Monetary Authority of Singapore's policy stance providing a modest tailwind for the currency. Across the broader region, the S&P Global US Manufacturing PMI edged down slightly to 53.8 in July, remaining near a four-year high, with Middle East-related supply disruptions contributing to longer delivery times and elevated input costs at a 14-month high. The Eurozone Services PMI meanwhile rose to a five-month high of 51.6, signalling a return to expansion. (Sources: Saxo Asia Market Quick Take, 14 July 2026; Saxo Asia Market Quick Take, 27 July 2026)

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