AI Stocks Cracked In July, New S&P 500 Challenges Emerge In August

Mike Zaccardi, CFA, CMT 9.51K Followers Follow Summary The S&P 500, while flat, had its worst July since 2014, with tech and AI stocks under heavy pressure while Energy surged on higher oil prices. Despite negative headline returns, six of eleven sector ETFs rose, and the S&P 500 Equal Weight ETF outperformed cap-weighted indices. Q2 S&P 500 blended EPS growth exceeds 45%, driving valuations lower, but concerns linger about a potential "earnings bubble" if AI capex disappoints. Seasonal volatility risks loom for August-September, with oil, long-duration Treasuries, and high-capex credit markets demanding close investor attention. alexsl/iStock via Getty Images The AI trade came under heavy selling pressure in July, but the S&P 500 ( SPY ) straddled the unchanged mark throughout the month. Still, it was the worst July performance for U.S. large caps since 2014, leading into what is often a more This article was written by Mike Zaccardi, CFA, CMT 9.51K Followers Follow Freelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable. Having expertise in thematic investing, market events, client education, and compelling investment outlooks, I relate to everyday investors in a pithy way. I enjoy analyzing stock market sectors, ETFs, economic data, and broad market conditions, then producing snackable content for various audiences. Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto excite me. My thing is communicating finance with an educational and creative style. I also believe in producing evidence-based narratives using empirical data to drive home points. Charts are one of the many tools I leverage to tell a story in a simple but engaging way. I focus on SEO and specific style guides when appropriate. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGG, IBIT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.