Investment Daily: US stocks and Treasuries fell as oil prices extended gains

24 July 2026

US stocks declined on Thursday as oil prices extended gains and renewed concerns over AI investment returns weighed on the tech sector. The S&P 500 fell 1.2% and the tech-heavy Nasdaq dropped 2.2%.

US Treasuries fell as a rally in oil prices and an unexpected decline in weekly initial jobless claims increased Fed tightening expectations. 10-year yields climbed 4bp to 4.69%. 

European stocks fell on Thursday amid higher oil prices and some downbeat earnings. The Euro Stoxx 50 fell 1.7%. Both the German DAX and French CAC lost 1.6%. In the UK, the FTSE 100 closed 0.7% lower.

European government bonds fell. 10-year German bund yields rose 3bp to 3.20% and 10-year French bond yields rose 5bp to 4.02%. In the UK, 10-year gilt yields rose 7bp to 5.10%.

Asian stock markets traded mostly higher on Thursday despite lingering geopolitical concerns and high oil prices, as a rebound in semiconductor shares helped some markets. Japan’s Nikkei 225 gained 0.5% and Korea’s Kospi rallied 4.4%. Elsewhere, China’s Shanghai Composite rose 0.3% as Hong Kong’s Hang Seng was up 1.3%. India’s Sensex lost 0.5%.

Crude oil prices rose further on Thursday. WTI for September delivery surged 6.2% to settle at USD92.2 a barrel.

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

In Japan, CPI inflation data came in largely in line with market expectations. The core-core gauge (excluding fresh food and energy) edged down to 1.7% yoy in June from 1.8% yoy in May.