market monitor

Market Monitor Chart of the Week: AI-Related Issuance Surge Credit AI-Related Supply % of Total Gross Supply (RHS) The AI trade is increasingly permeating all parts of 350 25% the market, including credit markets, where AI

% of Total Gross Supply 300 capex has driven a significant increase in issuance.

YTD Issuance ($bn) 20% 250 AI-related issuance now accounts for 16-23% of 200 15% gross issuance in the US IG, HY and Leveraged 150 10% Loan markets, as well as a sizable share of non- 100 USD IG markets. While US corporate fundamentals 5% 50 remain strong for both AI and non-AI companies, 0 0% AI-related issuance may put upward pressure on US US US EUR CAD CHF GBP JPY AUD EUR tech spreads, and we continue to prefer equity IG HY Lev IG IG IG IG IG IG HY exposure to the AI theme over credit given upside Loans potential. Source: GS Global Investment Research and GS Asset Management. As of July 25, 2026.

SAS Market Strategy Market Summary Economic Summary Global Equities: US equities rose last week, buoyed by softer- Inflation: Global economies continue to make progress on than-expected inflation data and strong performance from AI disinflation. After falling by 0.4% MoM in June, US CPI inflation rose stocks. The S&P 500 notched another all-time high on Thursday by 0.1% in July, while the annual rate eased from 3.5% YoY in June and ended the week up 0.39%. Even though European companies to 3.4%. Wage growth again came in below CPI, at 3.2% YoY in are experiencing one of their strongest earnings seasons in years, June. Core CPI, which strips out volatile food and energy prices, European equities struggled as the ongoing energy supply was 0.2% MoM and 2.5% YoY, in line with consensus expectations. disruption stoked concerns about inflation. The STOXX 600 ended US PPI inflation was lower than expected, coming in unchanged in down –0.27%. Japan’s TOPIX rose 3.00% to reach a record high July after June’s revised 0.1% decline. Consensus expectations had while South Korea’s KOSPI surged 11.81% due to a rebound in been for a 0.2% MoM increase. Core PPI, which excludes more semiconductor stocks. volatile components, increased 0.2% MoM, slightly below the expected 0.3%, and 4.2% YoY, in line with expectations. China's Fixed Income: US Treasury yields were mixed last week. The 2- headline CPI inflation slowed to a six-month low of 0.5% YoY in Year yield fell to 4.17% after PPI inflation and retail sales came in July as a sharp pullback in gasoline price increases was below consensus expectations, while the 10-Year yield rose accompanied by a 1.5% YoY decline in food prices. Core CPI alongside oil prices, ending the week up at 4.69%. The 30-Year inflation remained soft at 0.9% YoY, mainly due to muted domestic yield hit 5.28% during the week, its highest level since 2001, amid demand. concerns about mounting debt levels. The 10-Year German Bund yield ended up at 3.20%, which was also driven by higher oil prices. Activity: US retail sales unexpectedly fell by 0.6% MoM in July, having been expected to increase by 0.1%. This print was the first Commodities: Oil prices moved higher last week as Iran said the monthly fall since last October and the biggest since May 2025, Strait of Hormuz would not reopen until the US made a number of suggesting the US consumer may be losing momentum. The euro concessions and the US and Iran demanded compensation from area economy expanded by 0.4% in Q2, in line with consensus each other for damages caused by the war. WTI and Brent Crude expectations. UK monthly GDP increased by 0.3% MoM in June, ended up at $82.40 and $88.52/bbl, respectively. Gold rose as beating consensus expectations of flat activity. The expansion was market participants weighed the implications of higher oil prices mainly driven by a 0.4% increase in services output, which offset and underlying disinflationary pressures. It hit a two-month high on declines in production and construction. On a quarterly basis, GDP Wednesday and ended Friday at $4,376.40/troy oz. increased by 0.4% QoQ in Q2, suggesting UK economic activity FX: The US dollar index was roughly flat last week. The dollar remains fundamentally resilient. initially gained due to…