Last updated: August 5, 2026, 5:31 AM ET
Global Markets Rally on Strait of Hormuz Reopening Hopes
Global stock markets continued their rally, with sentiment boosted by the prospect of a U.S.-Iran agreement to reopen the Strait of Hormuz. U.S. stocks and oil fell sharply after Treasury Secretary Scott Bessent said the U.S. could reach a deal with Iran to reopen the Strait of Hormuz “today or tomorrow.” Crude futures fell to a three-week low after Treasury Secretary Scott Bessent said the U.S. could be close to an agreement with Iran to reopen the Strait of Hormuz, while Qatar reported progress in dialogue. Gold jumped, gaining for a third day as the prospect of an interim deal to reopen the Strait of Hormuz eased concerns about the outlook for inflation and reduced the odds of the Federal Reserve raising interest rates. U.S. stocks for a record as hopes rose for a US-Iran deal to open the Strait of Hormuz, while investors renewed bets on the artificial intelligence trade, driving gains in chipmakers. Australia’s stock climbed to a record on easing concerns over the US-Iran conflict and supportive signals in the domestic economy. Japanese stocks were higher thanks to renewed hopes for a U.S.-Iran deal to reopen the Strait of Hormuz. Eurozone government yields opened lower amid optimism about the reopening of the Strait of Hormuz. Treasury yields cooled amid a busy day of U.S. economic indicators and ahead of Friday’s employment report from the Bureau of Labor Statistics. Copper futures in New York traded just short of an all-time high, as investors awaited a decision on US tariffs, while also tracking a push to reopen the Strait of Hormuz that lifted demand for risk assets.
Corporate Earnings and Outlooks
Chip maker Infineon forecasts strong revenue growth on booming AI demand, expecting revenue of roughly $18.80 billion for the current fiscal year as the race to build AI infrastructure continues to fuel red-hot semiconductor demand. Siemens Energy orders reach record highs on U.S. data-center demand, with shares rising around 4% in early morning European trade as demand for U.S. data centers and surging global demand for electricity led to record high orders in its fiscal third quarter. Siemens Energy’s profit tripled as orders hit record highs, and it expects to achieve the higher end of its fiscal-year profit margin guidance, which it said in May would be between 10% and 12%. Siemens Energy sees a solid outlook on broad electrification, seeking to reassure investors that demand for gas turbines will remain strong into next year, pointing to power-hungry data centers as only one among a range of drivers in the global energy transition. Coca-Cola HBC’s net profit rose on higher volumes, with the Coca-Cola Co. bottler reporting that revenue per case increased and that earnings were boosted by growth in both its sparkling and energy segments. remains upbeat for the full year after volumes picked up pace despite weakness in the Americas, with the recovery in sales volumes adding to signs that new markets and a focus on more premium labels are helping brewers out of a lengthy slump. Honda doubled its profit and boosted guidance on a weaker yen, with the Japanese automaker aiming to improve its hybrid EV offerings to shore up its car business’s profitability. Honda raised its outlook 30% as a weak yen and U.S. demand lifted profits, with quarterly results reaching a record driven by its motorcycle business, a weak yen, and U.S. demand for hybrids. Abu Dhabi’s Adnoc Distribution profit nearly doubled on fuel demand and inventory gains, reporting a sharp jump in quarterly profit as higher fuel sales, inventory gains, and stronger margins lifted earnings. Pacific's first-half profit jumped on strong passenger and cargo traffic, with Hong Kong’s flag carrier reporting a sharp rise in first-half profit supported by increased passenger and cargo traffic despite significantly higher fuel prices. Next plc lifted its outlook for the third time this fiscal year, driving its shares to a record after sales surged in the second quarter due to warm UK weather and pent-up demand in the Middle East. Prudential Financial estimates as revenue from its asset manager soared, reporting second-quarter results that beat Wall Street estimates as revenue from its asset manager surged. Wynn Resorts’ revenue rose on demand from wealthy customers, with Wynn’s second-quarter profit coming in at $140.1 million, compared with a profit of $66.2 million a year earlier. Wynn’s new Middle Eastern resort is set to open in September 2027, with Wynn Resorts Ltd. stating its first casino located in the Middle East will now open in September of next year. Novo Nordisk maker of Wegovy, lifted guidance after a second-quarter boost, with the Danish drugmaker stating that annual sales and operating profit should fall less than it previously expected following a boost in the second quarter.
AI and Technology Sector Developments
SpaceX’s spending is supercharging AI revenues, with the Elon Musk-led rocket company spending $15.8 billion on AI projects in the second quarter and showing no plans to slow down. SpaceX, in its first earnings after its IPO, reported soaring AI spending, with Elon Musk’s rocket company stating its capital expenditures jumped nearly seven times from a year ago, and revenue also rose. Shares slid in pre-market trading for Elon Musk’s SpaceX even as the group said its quarterly revenues nearly doubled. What has happened to the finances of Elon Musk’s rocket maker over the past three months is pretty irrelevant, as SpaceX bolsters the case against quarterly earnings. Rocketing cloud Starlink demand boosted SpaceX revenue 92%, with the Strait of Hormuz opening remaining uncertain after a new strike. AMD shares fell 8% as Elon Musk commits to Nvidia chips for SpaceX, and while the company’s sales to data centers doubled in the latest quarter, its revenue only narrowly beat analysts’ estimates. The semiconductor index fell into a bear market despite “unprecedented” profit increases, as even big profits aren’t enough to keep chip investors happy. Shares of SK Hynix Inc. advanced, lifted by an overnight rally in US chipmakers and speculation that the Korean firm may soon unveil buybacks and other details of a broader shareholder return plan. Zhongji Innolight Eoptolink were hit by a report that Washington is drafting a ban on optical transceivers, causing shares in Chinese AI darlings to slide on U.S. ban fears. OpenAI and Anthropic models went rogue in cyber tests, with the UK watchdog warning that the tools undertook “potentially harmful activity directed at real people and organisations.” The Trump White House is readying an AI framework to review security risks, with the voluntary review process covering closed-source artificial intelligence models but excluding those that publish the underlying code. Banks are set to offload $15 billion of debt for an Anthropic data center backed by Google, a bond sale that could free up lending capacity as mega AI deals stretch Wall Street financing limits. The flood of AI spending by big tech companies is “trickling down to the broader economy,” according to Wells Fargo & Co., which says that’s poised to push up industrial stocks. investing heavyweights that backed situational awareness before it blew up include a hedge fund that tapped into a roster of big-name investors, some of whom warned the founder he was taking big risks.
Deals, Listings, and Financial Markets
Glencore plans a secondary listing in Australia, as the miner has long complained its London shares are undervalued. Glencore Plc a steep jump in profits after a surge in the price of its most important commodities and its trading unit had one of its best ever periods as the Iran war sent energy prices soaring. Glencore Plc said it has taken a provision on its exposure to iron ore trader Radiant World and confirmed it has stopped doing any new business with the firm. Jefferies Financial Inc. has been told that some of the invoices underpinning its financing to an iron ore trader called Sapphire Minmetals Corp. are not genuine, according to people familiar with the matter. Mitsubishi UBE Cement Corp. is planning to go public as soon as December, according to people familiar with the matter, five years after being formed through units of Japanese materials companies. Vietnam Technological Commercial JSB, known as Techcombank, is seeking a $1 billion loan for regular business operations, according to people familiar with the matter. China sold long-dated yuan-denominated sovereign bonds in Hong Kong at record-low yields, underscoring strong demand from global investors for the offshore issuance. China is courting global investors with bond market tweaks, and while building out market infrastructure is welcome, the country’s economic challenges could remain a deterrent. India expanded the size of its share sale in state-run insurance giant LIC to raise $3.3 billion on strong demand, as the base offer was oversubscribed, bolstering public finances amid challenges posed by high inflation. India’s central bank’s rare push to repatriate savings has drawn stronger than expected inflows, raising $40 billion from the diaspora to support the sagging rupee. India’s Life Corporation (LIC) saw its big share sale draw investors even as India’s IPO market stalls, with the state-run insurer expanding the offering to raise $3.3 billion amid strong demand. Manipal Health Enterprises Ltd. is set for a muted stock market debut in Mumbai after its $960 million initial public offering, as gray market trading signals cooling investor sentiment. Therapeutics Inc. an early-stage drug developer focused on immune system diseases with high unmet need, raised $289 million in a U.S. initial public offering that priced at the top of its market range. Disney is selling its stake in A+E Global Media to Hearst for about $1.2 billion, a deal that will give Hearst full ownership of prominent brands such as Lifetime and The History Channel. Apollo Global Inc. is investing $1.02 billion in a joint venture with Starwood Real Estate Income Trust, a commercial property vehicle known as SREIT that has struggled to provide liquidity. Hellman & Friedman’s Baker Tilly has dropped plans for a roughly $3 billion leveraged loan that was intended to refinance private credit debt and fund a dividend, according to people familiar with the matter. Allianz SE to buy the asset management unit of Singapore’s United Overseas Bank Ltd., marking the German insurer’s second major deal in recent days as Chief Executive Officer Oliver Baete pursues expansion in Asia.
Economic and Political Developments
At least 17 people were killed in Russia’s deadly missile attack on Kyiv, officials said, as the country runs desperately low on interceptor missiles that could fend off Russian bombardments. Ukraine's state operator is looking to add new export routes for the country’s critical grain harvest, after Russian attacks on its Black Sea ports curbed shipments. Russia's oil exports slipped as a lull in drone strikes boosted refining, with Ukraine’s switch to attacking tankers letting plants process more crude and ship less abroad. The judge, Amit P. Mehta, blasted the administration’s request for a dismissal in the case against the Oath Keepers, saying it bestowed “unearned grace” on the defendants “by wiping their records clean.” Jeanine Pirro, the U.S. attorney for the District of Columbia, told President Trump that his interior secretary, Doug Burgum, had misled him with a self-serving cover story for his own mistakes. President Trump said Jeanine Pirro, the U.S. attorney for Washington, D.C., “folded like an umbrella,” but for now, her job appeared to be safe, according to two people familiar with the meeting. Blanche’s nomination now advances to the Senate floor, where it was not immediately clear whether he would be confirmed given that he can afford to lose only two senators on a party-line vote. case active quantitative tightening is getting weaker, according to the Bank of England. The European Union is optimistic that winter liquefied natural gas imports will help offset inventories that are at their lowest level for this time of year in almost two decades after the Iran war impacted supply chains. U.S. natural futures lost ground as temperature forecasts were revised lower while production and inventories remained high. Arizona’s Democratic Governor Katie Hobbs, locked in a competitive re-election battle, plans to tap a moderate former mayor of Mesa, Ariz., John Giles, to serve as her lieutenant governor if she wins in November. William Lawrence two moderate candidates to challenge a vulnerable Republican incumbent in Michigan’s battleground House district, but some worry his views could hurt his chances in November. Representative Wesley Bell beat Cori Bush, his predecessor, in a Missouri rematch, and he will be a heavy favorite in the safely Democratic district in November. As they cast ballots in the Democratic Senate primary, Michigan voters said they were concerned about data centers, health care, Israel, and the war with Iran. Republicans hoped a shove from President Trump would persuade the embattled congressman Max Miller to drop his re-election bid in Ohio in the face of abuse allegations, but it hasn’t happened. Ronald S. a major funder of conservative political causes, has not given a single dollar this year to Republicans in his home state, and his super PAC has gone idle.
Automotive and Manufacturing Sector News
General Motors China’s SAIC are extending their joint venture partnership for 20 years, with the partnership planning to launch at least 30 new-energy vehicles by 2030 and deploy tech solutions developed in China for the Chinese market. European carmakers are turning to Chinese rivals to fill factory floors, as the European industry struggles to keep its plants alive. Lucid Group a wider loss amid growing competition and an EV downturn, with the electric vehicle maker reporting a wider loss in its second quarter on charges related to job cuts, as the company continues to struggle with competition and a wider downturn for electric vehicle demand. Lucid Group’s CEO warns that the U.S. cannot “stay isolated” from Chinese EV competition, predicting an industry “shakeout” and announcing a $1.4 billion cost-cutting program. Schaeffler AG to cut its German workforce through an expanded phased-retirement program as weak automotive demand continues to pressure the supplier. Mattel has spent years trying to transform into a toy and entertainment company, partnering with movie studios to bring its brands to the big screen, but as it stands, the majority of its revenue still comes from traditional toy sales. Huggies faced a stumble in China after a social-media firestorm, with a state-run newspaper claiming the diapers tested positive for formamide, a finding Huggies maker Kimberly-Clark disputes as false.
Other Notable Business and Market Updates
The judge set the Paramount-Warner Bros. merger trial for March, after Paramount, which struck a $111 billion deal to acquire Warner Bros., had requested a November trial for an antitrust lawsuit brought by state attorneys general. Paramount’s streaming continued to grow in the latest quarter, helping to narrowly offset another sales decline for its television unit, amid ongoing legal challenges to the Warner deal. David Ellison the Paramount-Warner Bros. deal, stating the issue is whether he can be trusted as a steward of CNN. P&G has sealed a $3.8 billion deal for supplements company Thorne, with the consumer goods group expanding its health business in a sector that has boomed since the Covid pandemic. Minnesota health are investigating an illness in people who ate at Chipotle, with salmonella cases tied to jalapeño peppers served at the chain. McDonald’s aims to improve service and food, and has chosen a new U.S. boss to help, as Skye Anderson takes over as U.S. president after growth in domestic business stalls. McDonald’s U.S. slowed as consumers spend more cautiously, leading the fast-food giant to name a new president of its U.S. operations to bring “focus and urgency” to a revamp of its outlets.