Market & Portfolio Update: July 2026

Early in the month, renewed tension in the Middle East briefly pushed Brent crude oil above US$100 a barrel, which lifted energy prices and brought inflation concerns back into focus.

Later in the month, attention shifted back to company earnings and the large amount of spending going into artificial intelligence. Some technology shares came under pressure, especially semiconductor companies, as investors questioned whether the rapid growth and heavy investment seen across the AI sector could be sustained.

In the United States, the Federal Reserve kept its key interest rate unchanged at a range of 3.50% to 3.75% at its 29 July meeting. The decision was not unanimous, with three members voting for a 0.25 percentage point increase because of inflation concerns.

Closer to home, the Reserve Bank of New Zealand raised the Official Cash Rate from 2.25% to 2.50% on 8 July, its first hike in three years. Annual consumer price inflation, sitting above the RBNZ’s 1-3% target range at 4.1%, was a key factor in the decision.