Public Markets 24 Hours

Last updated: July 31, 2026, 5:30 AM ET

AI Rebound Fuels Global Equities, Tech Stocks Rally

U.S. stock futures climbed higher as artificial intelligence optimism continued, a rally that also propelled South Korea's Kospi to its biggest daily rise on record and boosted European tech stocks. The Kospi surged 18%, rebounding from a significant sell-off as optimism returned that leveraged trades were nearing an end and AI investments would drive corporate profits. Ken Griffin’s Citadel in global AI stocks after a deal with embattled hedge fund Situational Awareness, which itself fell 67% in July. Asian stocks overall in nearly four months, driven by chipmakers and strong tech earnings that reinforced AI demand. Japanese stocks also rose 2.7%, led by electronics and bank sectors, tracking overnight gains in U.S. technology shares.

Corporate Earnings and Dealmaking in Focus

Nat West reported 29% in pretax profit and raised its guidance, also accelerating share-buyback plans following its acquisition of wealth manager Evelyn Partners. The lender’s second-quarter earnings of £2.3bn surpassed analysts’. In retail, J Sainsbury Plc agreed to sell its Argos general merchandise unit for at least £120 million to Swift Partners, a move to focus on its core food business. Canadian convenience retailer Alimentation Couche-Tard plans to acquire Poland’s Zabka for about $8.7 billion. BP is marketing its U.K. North Sea business for potential sale, marking a step to end oil production in its home country after six decades.

Shifting Strategies and Sector Outlooks

British Airways' owner, IAG despite benefiting from rerouted Middle East travelers, citing soaring fuel prices and the ongoing conflict. Puma reported 9.4% in currency-adjusted sales due to weak demand but reiterated its full-year guidance as part of a turnaround strategy. Siemens Healthineers, now expecting fiscal-year revenue growth of 3.5% to 4.0% on a comparable basis, down from a previous forecast of 4.5% to 5%. In the financial sector, HSBC is selling its $25 billion Australian loan book to Blackstone as part of a global overhaul.

Energy Markets Brace for Supply Disruptions and Geopolitical Tensions

Oil futures amid ongoing supply disruption concerns, particularly following attacks in the Black Sea. Saudi oil tankers are sailing away from the Bab el-Mandeb chokepoint and taking an unusual route around Africa due to threats from Houthi rebels in the Red Sea. Saudi Arabia has also announced a maritime defense coalition with fourteen countries to protect shipping and energy supplies. Meanwhile, U.S. natural gas futures gained support from storage data.

Global Economic Indicators and Currency Movements

Kenya's annual inflation rate climbed slightly to 6.5% in July, fueled by energy costs. Singapore's retrenchments since the pandemic in the last quarter, impacting overseas-facing industries. The yen weakened further after the Bank of Japan maintained its interest rate, though there were reports of potential intervention, with the dollar dropping.3% against the yen . Japan's authorities declined to confirm any intervention but hinted at overseas support. The PBOC signaled a preference for slower gains in the yuan, setting the daily fixing much weaker than expected.

Private Markets and Insurance Sector Entanglement

Private equity has significantly reshaped the life insurance industry, with insurers becoming a major driver of the private credit boom through deals with private equity shops or outright acquisitions. U.S. regulators have cited "circular" risk in investments used by KKR and Apollo, signaling growing concern that assets filling insurance balance sheets could harbor unseen risks . Fitch Ratings reported that the default rate across 1,300 U.S. private debt borrowers rose to a record high in the second quarter.

Tech Sector Developments and Investment Trends

Amazon's Zoox received clearance to begin paid robotaxi rides, a first for a purpose-built autonomous vehicle. Microsoft made market history, adding nearly half a trillion dollars to its market value in a single day, while Meta shares plunged . Big Tech companies like Google, Amazon, Microsoft, and Meta have vastly increased their AI spending since 2023, with Amazon alone planning to spend $220 billion on AI infrastructure this year . Despite AI optimism, some investors are wary of potential volatility, suggesting cross-asset holdings may be too tilted towards innovation and insufficiently protected against inflation .

Financial Institutions and Regulatory Actions

The FCA is launching a new initiative to revive London share trading, planning a single stream of stock data and publishing market depth figures. Societe Generale SA is of project finance deals through significant risk transfers, capitalizing on investor demand. In Japan, the Tokyo District Court ruled that a 2023 tender offer by hospitality firm Shidax Corp. undervalued its shares in a rare case of financial tussle.

Geopolitical Tensions and Their Market Impact

The war with Iran is widening, with U.S. hospitals seeing a surge in uninsured patients. pressures eased during a brief reprieve in the conflict, but the resumption of fighting suggests inflation risks remain prevalent . Oil prices rose at the end of a volatile week, on track for their biggest monthly gain since March as the U.S.-Iran war escalated. Airlines Group Africa’s largest carrier, expects its revenue growth to be cut in half this year due to soaring oil prices triggered by the Iran war .

Other Notable Market Movements and Economic News

Gold slipped Asian, trading within its recent consolidation range. U.S. Treasury yields declined amid signs of efforts for peace in the Middle East, with reports of Hamas agreeing to a disarmament plan. The Philippines plans to change how it prices local-currency bonds ahead of its inclusion in a J.P. Morgan index. Bolivia’s central bank will step into the foreign exchange market to stabilize its currency after it sank 22% in the past month.