July saw a sharp increase in volatility, marked by significant events: an assassination attempt on Donald Trump, President Joe Biden ending his reelection campaign, and Vice President Kamala Harris becoming the de facto Democratic nominee. Additionally, a software bug in CrowdStrike’s cybersecurity patch crippled Windows-based operating systems worldwide, leading to widespread disruptions, including flight and surgery cancellations.
Geopolitical tensions also escalated. The price of oil rose by approximately 5 percent on July 31, 2024, following reports that Iran’s Supreme Leader, Ayatollah Ali Khamenei, had ordered retaliatory strikes against Israel in response to the missile assassination of Hamas leader Ismail Haniyeh.
During the month, the S&P 500 index experienced a sharp decline of 2.3 percent in one day, its worst since December 2022, but later recovered with a rally on July 31, closing the month up by 1.1 percent. Meanwhile, the yield on the 10-year U.S. Treasury fell below 4.0 percent on August 1, down from 4.26 percent at the end of June.