Public Markets 24 Hours

Last updated: July 7, 2026, 11:30 PM ET

Geopolitics & Markets React to Escalating Middle East Tensions

Renewed Middle East tensions sent oil prices surging higher as the U.S. revoked a waiver allowing Iran to sell its oil globally, a move that also spurred fears of supply disruptions. Crude futures were sharply higher as the U.S. revoked Iran’s license to sell oil in response to Iranian attacks on ships in the Strait of Hormuz sending crude prices higher. Gold prices rose on renewed fighting amid the escalating conflict, though the precious metal steadied after fresh U.S. strikes as investors weighed the Federal Reserve’s interest rate outlook. Asian currencies mostly weakened against the dollar amid the geopolitical uncertainty, while Asia-Pacific government bonds fell in price terms amid higher crude oil prices. Exxon Mobil Holdings Corp. reported a staggering $3.7 billion profit surge in its second quarter, directly attributing the gains to the Iran conflict boosting oil prices. Russian oil flows have hit new highs, but slumping prices are crushing income.

Tech Sector Faces Headwinds Amid AI Spending Worries and Earnings Disappointments

The technology sector experienced a significant downturn, with U.S. stock futures pointing to renewed weakness after Samsung Electronics Co.'s earnings failed to meet lofty artificial intelligence expectations. This led to renewed pressure on chipmakers globally, and U.S. tech futures fell in early European trade, with global AI-related stocks weakening. Samsung shares tumbled 10% despite reporting record quarterly profits, as investor concerns about massive AI investments outweighed earnings driven by high memory chip prices. The broader tech rout deepened, with chipmakers facing declines as investors fled volatile AI investments following Samsung's report and renewed Hormuz fears. Even SpaceX, which had received bullish Wall Street recommendations, saw its shares stumble below their opening price in a glum day for tech stocks. Analysts at Apollo Global Management warned that companies outside the largest tech giants are failing to show profitability gains from their AI spending, suggesting a potential risk to stalled margins.

Emerging Markets Face Downgrades and Investor Scrutiny

S&P Dow Jones Indices placed Turkey on a watchlist for a potential downgrade to frontier-market status, mirroring warnings from MSCI Inc. In a separate development, S&P Dow Jones Indices also listed Indonesia for a potential downgrade to frontier-market status, citing potential worsening circumstances for its securities. India's equity rally, which had been broadening and attracting foreign flows, is now challenged U.S.-Iran strikes. However, a selloff in Indonesian assets, which accelerated during the Iran war, has created a buying opportunity for a South African money manager with $29 billion in assets, who has entered the market. Global investors have returned to India’s financial stocks after a three-month selling streak, as the central bank's recent measures to draw foreign capital ease funding constraints for lenders, leading to foreign funds returning.

Political Turmoil and Legal Battles Shape Domestic and International Arenas

In Maine, top Democrats are clashing over a nominee to replace Graham Platner, who faces a rape accusation. A state party official stated that Platner would have "no role" in picking the next nominee, despite his team's alleged attempts to influence the process as he still wants a say. Bernie Sanders has also called on Platner to drop his Senate bid after the allegation, as many supporters struggle to come to terms with the campaign's potential end and abandon him. In Mexico, former Pemex CEO Victor Rodríguez was reportedly detained in Mexico City. Meanwhile, a federal judge rejected a Justice Department effort to obtain information on election workers in Fulton County, Georgia, related to the 2020 vote, quashing a DOJ subpoena. The U.S. Justice Department is also threatening top election officials over noncitizen voting, a move that comes amid President Trump's efforts to tighten election rules to prevent a problem that doesn't exist.

Corporate Dealmaking and Financial Watch

Momenta Global Ltd., a Chinese autonomous-driving firm backed by GM, is set to begin trading in Hong Kong after raising HK$5.9 billion ($752 in an initial public offering, testing market appetite. In Singapore, Temasek-backed Foundation Healthcare Holdings Ltd. is also debuting after its IPO, which was the largest of the year so far in the city-state outside of real estate investment trusts Foundation Healthcare debut. Sumitomo Mitsui Trust Bank has inked a $2 billion partnership with Morrison, taking a 15% stake in the New Zealand-based infrastructure investor to provide its Japanese customers access to fresh investment opportunities. In a separate deal, Coty will transfer the Gucci Beauty license back to Kering ahead of schedule for $400 million, with Kering expecting to license the brand to L'Oréal starting mid-2027 for a 50-year exclusive agreement Coty transfers license. Jefferies Financial Group Inc. is gauging investor interest to raise approximately $5 billion in debt to support Carl Icahn in a possible rival bid for Caesars Entertainment Inc. Jefferies shops debt.

Economic Indicators and Policy Shifts

French industrial production grew for a second month, indicating Europe’s largest economy is exiting the drag from the Iran war German industry grows. France announced an additional €3 billion ($3.4 in budget cuts for the year as it struggles to meet its deficit reduction targets due to weaker economic activity France unveils cuts. The Federal Reserve proposed changes to anti-money laundering requirements for banks, part of a broader regulatory effort to address core financial risks Fed proposes AML changes. U.S. consumers' expectations for inflation rose in June, with anticipated strong increases in medical care costs and rent NY Fed survey. Meanwhile, Japan's borrowing costs soared to a 30-year high, driven by concerns over long-term spending plans Japan’s borrowing costs soar.