Rising bond yields and renewed questions about AI valuations pressured stocks, while volatility rose only modestly and remained well contained.

Cooling inflation kept stocks near record highs as volatility remained subdued, even as softer retail sales complicated the growth outlook.

Strong earnings put the AI trade back on offense as market stress receded.

July’s unwind in crowded technology and momentum trades illustrates how forced deleveraging can roil individual stocks without necessarily signaling a broader market crisis.

Earnings steady the market as volatility retreats