Public Markets 24 Hours

Last updated: August 5, 2026, 8:31 AM ET

Market Sentiment Shifts on Geopolitical Hopes

Global stock markets rallied as hopes for a diplomatic resolution to the conflict in the Middle East grew, particularly regarding the reopening of the Strait of Hormuz. U.S. stocks jumped after Treasury Secretary Scott Bessent indicated that a deal with Iran to reopen the Strait of Hormuz could be imminent, potentially occurring "today or tomorrow." The S&P 500 hit a record high as Iranian and Omani negotiators reportedly agreed on a temporary shipping arrangement. Treasury yields declined in European trade as investors remained optimistic about a potential deal that could lead to the reopening of the Strait of Hormuz. Crude futures fell to a three-week low after Treasury Secretary Scott Bessent stated the U.S. could be close to an agreement with Iran to reopen the Strait of Hormuz, with Qatar reporting progress in discussions. Oil prices also dipped on news related to Iran, suggesting a potential easing of supply concerns. Gold prices climbed above $4,200 as signs of diplomatic progress in the Middle East tempered fears over inflation and interest-rate hikes. The dollar traded steady as uncertainty over the Iran war remained elevated. However, later reports indicated that the WSJ Dollar Index edged lower, down five of the past six trading days.

Tech Sector Continues Its Rally Driven by AI

Futures climbed as the latest batch of earnings pointed to strong demand for, and spending on, artificial intelligence. A dramatic turnaround in technology stocks has powered a $3.5 trillion increase in the Nasdaq 100’s market capitalization in just four days, driven by strong earnings that have emboldened investors. This tech euphoria has returned in just four days, completely shifting sentiment from the previous month. Investors are showing renewed confidence, with the semiconductor index falling into a bear market despite “unprecedented” profit increases, suggesting that even strong earnings are not enough to satisfy chip investors. Chip maker Infineon forecast 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 reached 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 the company expects to achieve the higher end of its fiscal-year profit margin guidance, which was previously stated to be between 10% and 12%. The CEO of Siemens Energy sees a solid outlook driven by broad electrification, reassuring investors that demand for gas turbines will remain strong into next year, with power-hungry data centers being just one of several drivers in the global market.

Corporate Earnings Showcase Resilience and Growth

Kraft Heinz raised its sales outlook amid efforts to offset higher costs, despite reporting lower profit and sales in the second quarter. Shopify posted a surge in second-quarter profit, driven by gains across both its subscription software and merchant services units. Thomson Reuters bumped up its revenue targets for the year after logging double-digit growth across its three major business segments in the latest quarter. SharkNinja raised its full-year outlook after second-quarter sales rose on strong demand across its product lineup, with growth led by cooking appliances, beauty products, and international markets. Eli Lilly reported higher net income and revenue in the recent quarter, fueled by continued surging demand for its GLP-1 weight-loss drugs. CVS Health said it will revamp its weight management program through a partnership with Eli Lilly, lifting its full-year outlook and reporting a nearly threefold increase in its second-quarter profit. Disney’s third-quarter revenue increased 7% to $25.2 billion, driven by growth from the company’s experiences unit, with theme parks and “Toy Story 5” boosting results. Disney’s domestic parks and cruises revenue rose 11 percent in the latest quarter, with theme parks long seen as a bellwether for consumer confidence. Coca-Cola HBC reported a rise in net profit on higher volumes, with revenue per case increasing and earnings boosted by growth in both its sparkling and energy segments. Heineken reported an upbeat full-year outlook after volumes picked up pace, despite weakness in the Americas, adding to signs that new markets and a focus on premium labels are helping brewers recover from a lengthy slump. Next PLC raised 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 U.K. weather and pent-up demand in the Middle East and other regions. U.K. retailer Next PLC now targets $1.67 billion in pretax profit, with its stock having risen 19% over the year to date. Cathay Pacific posted its strongest first half since 2010 but flagged fuel risks, as increased passenger and cargo traffic more than offset a surge in fuel prices. Dhabi’s Adnoc Distribution reported a sharp jump in quarterly profit as higher fuel sales, inventory gains, and stronger margins lifted earnings. Wynn Resorts’ second-quarter revenue rose on demand from wealthy customers, with its second-quarter profit coming in at $140.1 million, compared to a profit of $66.2 million a year earlier. Prudential Financial Inc. reported second-quarter results that beat Wall Street estimates as revenue from its asset manager surged.

Automotive and Transportation Sectors Face Mixed Fortunes

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 Motor Co. raised its profit outlook after its motorcycle business, a weak yen, and U.S. demand for hybrids lifted quarterly results to a record. General Motors and China’s SAIC extended their joint venture partnership for 20 years, with plans to launch at least 30 new-energy vehicles by 2030 and deploy tech solutions developed in China for the Chinese market. Schaeffler AG plans to cut its German workforce through an expanded phased-retirement program as weak automotive demand continues to pressure the supplier. Lucid Group, the electric vehicle maker, posted a wider loss in its second quarter due to charges related to job cuts, as the company continues to struggle with competition and a broader downturn in electric vehicle demand. The CEO of Lucid warned that the U.S. cannot remain isolated from Chinese EV competition, predicting an industry "shakeout" and announcing a $1.4 billion cost-cutting program.

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