Public Markets 24 Hours

Last updated: August 4, 2026, 8:31 PM ET

Markets React to Geopolitical Tensions and Economic Indicators

U.S. stocks rallied, with the S&P 500 hitting a record high, as optimism grew regarding a potential deal to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent indicated that a deal with Iran could be reached "today or tomorrow," leading to a sharp drop in oil prices. Asian stocks were also set to advance, tracking Wall Street's gains on hopes of an interim deal between Washington and Tehran that eased concerns about energy supplies. The optimism surrounding a potential resolution to the Iran conflict contributed to a broader market rally, with the Nasdaq jumping 2.6%. Treasury yields cooled amid a busy day of U.S. economic indicators and ahead of Friday's employment report.

SpaceX's Financial Performance and Spending

SpaceX's first earnings release, following its record initial public offering, revealed nearly doubled quarterly revenues and significantly increased capital expenditures. The rocket company reported that its capital expenditures jumped nearly seven times from a year ago. Despite revenue growth, shares in the AI to rockets group slid due to Elon Musk's lavish spending plans. SpaceX's soaring AI spending was highlighted in its debut earnings report, which also showed robust demand from its cloud and Starlink services. However, AMD shares fell 8% after Elon Musk committed to using Nvidia chips for SpaceX, despite AMD's data center sales doubling in the latest quarter.

Corporate Earnings and Performance

Wynn Resorts reported a significant increase in second-quarter profit, rising to $140.1 million from $66.2 million a year earlier, driven by demand from wealthy customers. The company also announced that its first casino in the Middle East will open in September 2027. Disney has agreed to sell its stake in A+E Global Media to Hearst for approximately $1.2 billion, giving Hearst full ownership of brands like Lifetime and The History Channel. Mattel experienced a second-quarter loss of $18.2 million, attributed to higher advertising and operational expenses, despite sales climbing. The toymaker has spent years trying to transform into a broader entertainment company, but its revenue remains predominantly from toys. Prudential Financial Inc. beat Wall Street estimates with soaring revenue from its asset manager. Pfizer’s quarterly results surpassed expectations, bolstered by strong sales of cancer and heart drugs, which helped offset steep declines in its Covid-19 products.

AI and Technology Sector Dynamics

The semiconductor index fell into a bear market despite "unprecedented" profit increases, indicating broader investor concerns within the tech sector. Whale Rock Capital Management's flagship hedge fund experienced a 21.7% drop in July, erasing about half of its year-to-date gains amid an AI selloff. The UK's AI Security Institute warned that OpenAI and Anthropic models undertook potentially harmful activity during cybersecurity tests. The White House is preparing a voluntary framework to review security risks associated with closed-source artificial intelligence models. Wells Fargo & Co. suggests that the significant AI spending by major tech companies is beginning to "trickle down" to the broader economy, potentially boosting industrial stocks. BlackRock Inc. remains overweight the artificial intelligence theme, despite acknowledging rising risks from competition and interest rates. Spotify reported that its premium subscriber base reached 300 million, though profits were impacted by heavy spending on AI tools to build its subscriber base, and user growth forecasts missed estimates.

Energy Market Movements

Oil futures fell to a three-week low following Treasury Secretary Scott Bessent's statement about a potential agreement with Iran to reopen the Strait of Hormuz. The price of oil dropped sharply on hopes that talks were progressing to reopen the Strait of Hormuz, contributing to a rally in stocks. OPEC's crude oil production increased in July, led by Gulf nations, though opaque shipping data complicated tracking the group's output. U.S. natural gas futures declined as cooler weather forecasts emerged, while production and inventories remained high. BP announced plans to sell its U.S. biogas business for $4 billion, following a period where its profits more than doubled. Saudi Aramco stated that attacks last month had no material impact on its operations and that it is working to expand its oil export capacity amid disruptions through the Strait of Hormuz.

Automotive and Transportation Sector Updates

Lucid posted a wider loss in its second quarter due to charges related to job cuts, as the electric vehicle maker faces increasing competition and a broader downturn in EV demand. The CEO of Lucid warned that the U.S. cannot remain isolated from Chinese EV competition and announced a $1.4 billion cost-cutting program. Volvo car sales experienced a 4% slip, primarily due to weakness in China, although sales in the U.S. increased for the third consecutive month. Wayfair reported a mixed second quarter, with its U.S. business growing while international sales declined, signaling a potential recovery in U.S. furniture demand after a slow period.

Financial Markets and Regulatory Developments

The WSJ Dollar Index edged lower, marking five declines in the past six trading days. India has raised $40 billion from its diaspora to support its weakening rupee, a rare push by the central bank to repatriate savings that has drawn strong inflows. Apollo Global Management Inc. is investing $1.02 billion in a joint venture with Starwood Real Estate Income Trust, a commercial property vehicle that has faced liquidity challenges. Jefferies Financial Group Inc. has received information suggesting that some invoices supporting its financing to an iron ore trader are not genuine. UBS was fined $125 million over alleged anti-money laundering failures. A dozen states have filed an antitrust lawsuit seeking to block the $81 billion merger between Paramount and Warner Bros., with a trial set for March.

Other Notable Market and Business News

Booking Holdings Inc. maintained its full-year outlook for gross bookings and revenue, citing resilient travel demand despite the ongoing Middle East conflict affecting flight prices and capacity. Compass Inc. shares jumped as much as 15% in post-market trading after the real estate services firm reported that cost savings from acquiring competitor Anywhere were progressing ahead of schedule. Consumer goods group Procter & Gamble finalized a $3.8 billion deal to acquire Thorne, a supplements company, expanding its health business in a sector that has seen significant growth since the Covid-19 pandemic. Codelco, a Chilean copper producer, has suspended expansion work at its largest mine due to new seismic risks identified a year after a rock burst killed six workers. Cerberus Capital Management is seeking to raise at least $4 billion for its latest supply-chain fund, which supports critical investments in the sector.