MARKETS
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While the monthly change in the overall market seems benign in July, there were extreme volatilities in semiconductor names and AI related companies. The global equity index (MSCI ACWI IMI) decreased -0.24% in July and was up +11.75% YTD. The S&P 500, which tracks large cap U.S. stocks, decreased -0.06% in July and was up +10.14% YTD. The Russell 2000 Index, which tracks domestic small cap stocks decreased -3.03% in July and was up +18.85% YTD. The International developed equity index (MSCI EAFE) increased +1.96% in July and was up +11.59% YTD. The emerging markets index (MSCI EM) decreased -3.07% in July and was up +20.04% YTD.
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In July, the bond yield curve steepened; the 30-year U.S. Treasury bond yield increased +36 bps to 5.27%, the 10-year yield increased +31 bp to 4.75%, and the 2-year yield increased +14 bps to 4.28%. The Bloomberg U.S. Government Credit Index, a proxy for the U.S. fixed income market, decreased -1.29% in July and was down -0.80% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
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According to the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) increased in the second quarter of 2026 by +1.5%, down from the first quarter 2026 increase of +2.1%.
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The July Services PMI was 54.1%, up +0.1% from June. The July Manufacturing PMI was 55.6%, up +2.3% from June. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
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As reported by the Bureau of Labor Statistics on August 7, 2026, July non-farm employment decreased by 23,000 jobs, while the unemployment rate slightly decreased to 4.1%. In July employment decreased in local government education and retail trade, while health care trended up. Average Hourly Earnings (wages) increased by 3.2% year-over-year.
PERFORMANCE UPDATES
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The Equity Fund decreased -0.62% in July and is up +12.46% YTD. The Bond Fund decreased -1.26% in July and is down -0.87% YTD. The Stable Value Fund increased +0.23% in July and is up +1.55% YTD. The Northern Trust World Selection Index Fund increased +0.06% in July and is up +9.83% YTD.
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The Sustainable Balanced Fund decreased by -0.97% in July and is up +5.11% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040; TAD 2045; TAD 2050; TAD 2055; TAD 2060; and TAD 2065 returns were down -0.26%, -0.69%, -0.90%, -0.88%, -0.82%, -0.78%, -0.70%, -0.71%, and -0.70% respectively for July and are up 3.24%, +4.53%, +6.12%, +7.38%, +8.42, +9.42%, +10.29%, +10.34%, and +10.32% respectively YTD.
Note: Fund performance values are estimates.