Source: Charles Schwab, data from 7/27 – 7/31

Weekly Market Minute

“Long-term thinking is impossible without patience.”
— Shane Parrish

🧭 This Week In the Markets

Image Source: Evelyn Hockstein | Reuters

Fed Holds Steady, but Inflation Debate Intensifies

The Federal Reserve voted 9-3 to keep the federal funds rate unchanged at 3.50% to 3.75%, though the unusually large number of dissenting votes highlighted growing concern within the Committee that inflation remains too persistent. The dissenting officials favored an immediate 25-basis-point rate increase, reflecting concerns over ongoing inflationary pressures fueled by tariffs, elevated energy prices, and resilient economic growth. In its policy statement, the Fed again described economic activity as expanding at a solid pace with a stable labor market while reaffirming its commitment to restoring price stability. Chairman Kevin Warsh continued his preference for a data-dependent approach, offering little forward guidance on future policy actions. While markets widely expected rates to remain unchanged at this meeting, the hawkish vote split reinforces expectations that further policy tightening remains possible if inflation does not continue to move toward the Fed’s 2% target.

Big Tech Earnings Highlight an AI Divide

This week’s Big Tech earnings further highlighted that investors are becoming increasingly selective in how they evaluate artificial intelligence investments. Microsoft emerged as the clear leader following a standout earnings report, delivering stronger than expected Azure cloud growth and continued momentum in Microsoft 365 Copilot adoption. The results reinforced that the company’s years of substantial AI infrastructure investment are beginning to generate meaningful financial returns, fueling one of Microsoft’s strongest single-day stock performances in years. Amazon also impressed investors as Amazon Web Services delivered its fastest growth since 2021, signaling that enterprise demand for AI infrastructure remains robust and helping validate the company’s continued investment in expanding its cloud capabilities.

Apple, meanwhile, moved lower despite reporting better than expected quarterly earnings and iPhone sales, as investors focused on weaker forward guidance driven by memory shortages, chip supply constraints, and expectations for slower near-term growth. Meta also came under pressure after issuing disappointing revenue guidance and reporting a sharp decline in free cash flow as elevated AI spending continued to weigh on profitability. Taken together, this earnings season reinforced a clear market theme: investors are rewarding companies that can demonstrate tangible returns from their AI investments while becoming less patient with businesses where spending continues to outpace visible financial results.

🏢 Corporate Earnings

• Microsoft (MSFT) beat fiscal fourth-quarter expectations, reporting earnings per share of $4.74 on revenue of $90.0 billion compared to estimates of $4.24 and $87.6 billion, as the intelligent cloud segment grew 31.6% year-over-year.
• Meta Platforms (META) missed second-quarter earnings expectations, reporting earnings per share of $6.18 on revenue of $60.8 billion compared with estimates of $7.22 and $60.2 billion, while its third-quarter revenue guidance of $61 billion to $64 billion fell short of Wall Street expectations.
• Apple (AAPL) reported fiscal third-quarter results above expectations, with earnings per share of $1.91 on $109.4 billion of revenue compared to estimates of $1.89 and $108.7 billion, while forward guidance came in below expectations as supply constraints increase chip costs.
• Amazon (AMZN) surpassed second-quarter expectations, reporting earnings per share of $1.97 on revenue of $200.6 billion compared with estimates of $1.82 and $196.5 billion, driven by 37% growth in AWS.
• ExxonMobil (XOM) topped expectations, with fiscal fourth-quarter earnings per share of $1.71 on $82.3 billion in revenue compared to estimates of $1.68 and $81.4 billion, while oil production reached 4.7 million barrels per day, the highest level in more than 40 years.

📊 Sector Performance

5-day closing price ($) and change (%)

Source: Select Sector SPDRs, data based on the Sector SPDR ETFs as of 7/31

Latest from EMW

Introducing Senior Financial Advisor Amy Hlavacek, CFP®, CPA
We’re incredibly grateful for the opportunity to continue growing and serving our amazing clients. Our top priority has always been to deliver the ultimate client experience, and we couldn’t do that without our dedicated team members who share that client-first mentality.

How Wealthy Families Finance Dream Homes
The main issue high-net-worth families face when buying their dream home isn’t affordability. It’s timing and liquidity. Whereas a traditional mortgage might mean selling your investments, a pledged asset line (PAL) allows you to access liquidity using eligible investments as collateral.

📰 Dollars & Sense: This Week’s Rapid Read

Types of Mortgages: Compare Home Loan Options
Learn about the most common types of mortgages and what to consider when originating a home loan.

Source: Charles Schwab

Dive deeper on financial topics you should know:

Money Moves with Darin
Real-world wealth strategies and actionable insights to help you think smarter about money.

Lizzie’s Wealth Wisdoms
Strategies and tactics that you can employ today to help minimize taxes, protect your net worth, and simplify your life.

Sign up to our mailing list to get your weekly financial news straight to your inbox.

Keep up with the latest: Follow @EvansMayWealth on social media to get the latest market commentary while your scroll.

Sources: CNBC, CNBC, CNBC
Corporate Earnings: Microsoft, Meta Platforms, Apple, Amazon, ExxonMobil

Sanctuary Wealth makes no representation as to the accuracy or completeness of information contained herein. Any forward-looking statements are based on assumptions, may not materialize, and are subject to change without notice. The information is based upon data available to the public and is not an offer to sell or solicitation of offers to buy any securities mentioned herein. Any investment discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Investments are subject to risk, including but not limited to market and interest rate fluctuations. Any performance data represents past performance which is no guarantee of future results. Prices/yields/figures mentioned herein are as of the date noted unless indicated otherwise. All figures subject to market fluctuation and change. Additional information available upon request.