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Global financial markets posted mixed performance through mid-July as two previously favorable trends reversed. Negative developments in the Iran military conflict drove energy prices higher and raised renewed questions about the timing and likelihood of a resolution, while positive sentiment toward AI also reversed as investors questioned the sustainability and profitability of continued AI spending. This shift pared strong year-to-date gains in AI-sensitive equities, including Semiconductors. Interest rates rose amid persistent inflation and higher energy prices, while the U.S. dollar declined against most major currencies. Commodities advanced, led by gains in Oil, Aluminum, and agricultural commodities.

Hedge funds posted declines through mid-July, with the HFRX Global Hedge Fund Index declining -0.20%.

• HFRX Event Driven Index gained +0.25%
• HFRX Relative Value Index declined -0.04%
• HFRX Macro Index declined -0.22%
• HFRX Equity Hedge Index declined -0.74%

Comments reference performance figures as of July 15th, 2026