ETF Market Pulse

ETF Market Pulse Week 5 – July 2026: Cloud Computing Takes to the Sky while Korean Defense Drops Its Shield

Jérémy Cadenat  Cloud Computing Rebounds on AWS Beat: Cloud computing ETFs moved higher after Amazon Web Services reported +37% YoY revenue growth, confirming resilient Sebastien Lemaire enterprise cloud demand and supporting top ETF holdings exposed to cybersecurity and data platforms such as Datadog, Snowflake and CrowdStrike. The momentum was Lalatendu Khandagiri reinforced by Tenable Holdings’ earnings beat and upgraded profit & revenue outlook, which provided positive read-across for broader cloud-security software names, Sunil Vaderahalli Dayananda including CrowdStrike and Palo Alto Networks.  European Equities Lifted by Banks: European equities were supported by a strong bank earnings season, with several major names beating expectations, upgrading guidance and announcing buybacks. Major banks such as SocGen, NatWest, UBS, BBVA, Deutsche Bank and Standard Chartered helped drive the move, reinforcing the positive contribution from Financials within Vanguard FTSE Europe ETF.

 Freight Wins While Commodities Fall: Broad commodities sold off as US-Iran de- escalation removed part of the geopolitical risk premium from oil, precious metals and base metals, with oil down 5 to 7% as supply disruption fears faded and OPEC+ supply expectations added pressure. In contrast, tanker shipping and dry bulk shipping ETFs rallied because freight ETFs track the cost of transporting commodities, not the commodity price itself. Tanker shipping ETF benefited from a Hormuz-driven surge in crude tanker demand as delayed Persian Gulf cargoes had to be shipped quickly, tightening vessel capacity, while dry bulk shipping ETF was supported by stronger demand, particularly linked to Chinese industrial and infrastructure activity.

 Semiconductor Sell-Off Hits Concentrated Memory Exposure ETF: Amundi Global Memory Chip UCITS ETF fell 8.3% as the market rotated out of AI-linked memory names, with DRAM-exposed stocks hit by doubts around the pace at which hyperscaler AI capex converts into real chip demand. The pressure intensified after SK Hynix’s earnings miss triggered substantial losses across the memory complex, weighing on key ETF constituents such as Sandisk, Samsung and Micron.

 Korea Is Not Only About AI: Defense Gets Hit Too: PLUS Korea Defense Industry Index ETF sold off as the broader Korean market rout spread beyond semiconductors. The sector faced an additional headwind from Iran de-escalation, which reduced the geopolitical premium that had previously supported defense stocks. At the same time, earnings misses reinforced the move, with Hyundai Rotem and Korea Aerospace Industries disappointing on profitability despite still-solid revenue dynamics, pointing to delayed export contracts and margin pressure. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX isclaimer

Please see important disclaimer and disclosures at the end of the document

A Clear Shift Back to Equity Momentum, Led by Europe and Japan, as Bitcoin and Broad Commodities Fade ETF weekly performance heatmap across selected asset classes Weekly USD total returns (%) | US and Europe‑domiciled long‑only ETFs (unhedged share classes) | Colors by Asset

Source: SG Cross Asset Research/ETF, Bloomberg, US Equities: SPY US, European Equities: VGK US, Japan Equities: EWJ US, EM Equities: IEMG US, US Small Caps: IWM US, US Value: VTV US, US Growth: IWF US, Short Term Rates: SGOV US, Govies: IGBG NA, Inflation Bonds: TIP US, IG Credit: AGG US, HY Credit: HYG US, EM Bonds: EMB US, Broad Commodities: PDBC US, Gold: GLD US, Bitcoin: IBIT US