S&P 500 −1.43%
Nasdaq 100 −2.45%
STOXX Europe 600 −0.56%
EURO STOXX 50 −1.18%
My portfolio –1.51%
Market pulse
Global equities declined during the week ending 21 August as rising government-bond yields and higher oil prices outweighed resilient earnings and improving German manufacturing data. The bond sell-off was the central driver: expanding fiscal deficits, heavy sovereign issuance and persistent inflation pushed long-term borrowing costs to multi-year highs, producing particularly heavy selling in semiconductors and other valuation-sensitive technology shares. Iran-related uncertainty compounded the pressure by lifting energy prices and strengthening expectations that both the Federal Reserve and ECB would maintain restrictive policy. In Europe, the DAX fell 1.15%, from 26,440.31 to 26,136.56, with German technology and industrial companies affected by higher yields, producer-price inflation and low Rhine water levels. Strong manufacturing data produced a partial rebound on Friday, but not enough to offset the deterioration in financial conditions earlier in the week.
Crowd vs. price
The dominant longer-term market narrative remained constructive: corporate earnings were strong, AI investment continued to expand and several major research houses still expected further equity gains. Actual price action, however, showed that investors were unwilling to ignore the cost of financing that growth. All four tracked indices declined, the Nasdaq 100 underperformed markedly, and defensive healthcare and energy shares held up better than high-duration technology companies.
The week therefore looked less like the beginning of an earnings recession and more like a valuation and positioning correction. Investors did not abandon the AI or economic-growth narratives, but they demanded lower prices as bond yields rose. Friday’s rebound, together with continued strength in selected healthcare, energy and consumer shares, showed that the selling remained selective rather than indiscriminate. The market’s message was that earnings remained credible, but the price investors were prepared to pay for distant growth had fallen.
Holdings & Watchlist Notes
Marvell Technology — MRVL: +6.77%
Marvell Technology gained 6.77% during the week, driven overwhelmingly by its expanded custom-silicon agreement with Google. The arrangement creates a potentially exceptional long-term revenue opportunity and validates Marvell as a major supplier of hyperscaler-designed AI infrastructure. It also suggests that Google is diversifying beyond its traditional custom-chip partners, improving Marvell’s strategic position in one of the semiconductor industry’s fastest-growing markets. The announcement landed immediately after a broad chip-sector sell-off, magnifying the rebound. Potential dilution from the accompanying Google warrant and short-term profit-taking limited the final weekly gain, but the commercial and strategic implications remained decisively positive.