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Last updated: August 5, 2026, 11:31 AM ET

Global Markets See Gains as Tech Stocks Lead Rally

European stocks extended their record highs, with the Stoxx 600 index showing gains and industrial and retail sectors performing well. Futures S&P 500 climbed, indicating a positive start to the trading session, as recent earnings reports suggested robust demand and spending in the artificial intelligence sector. A significant turnaround in technology stocks over the past four days has propelled a $3.5 trillion increase in the Nasdaq 100's market capitalization. The S&P 500 reached a new record high, surpassing its previous peak from early June, driven by a strong rebound in technology stocks and easing investor concerns regarding Iran and AI developments.

Corporate Earnings Drive Market Sentiment

Shopify has projected accelerating third-quarter sales growth, dispelling concerns about a midyear slowdown due to the influence of artificial intelligence-driven search and broad merchant expansion. Bloomin’ Brands has raised its adjusted earnings outlook, as customers at its Outback Steakhouse chain are opting for more expensive steaks. Drugmakers Eli and Novo Nordisk have increased their profit forecasts amid soaring demand for weight-loss drugs, although investors are showing caution regarding Novo Nordisk's heavy reliance on these treatments. Eli Lilly reported higher net income and revenue, primarily driven by sustained high demand for its GLP-1 weight-loss medications. CVS Health lifted its full-year outlook and reported a nearly threefold increase in its second-quarter profit, announcing a partnership with Eli Lilly to revamp its weight management program.

Tech and AI Sector Continues to Shine

The strong performance of artificial intelligence-related spending is a key narrative supporting the S&P 500's poised ascent to another record. Chipmaker Infineon forecasted substantial revenue growth, anticipating approximately $18.80 billion for the current fiscal year, fueled by the ongoing demand for semiconductors essential for building AI infrastructure. In African tech hubs, developers are increasingly choosing China’s affordable and readily available artificial intelligence models over more advanced U.S. alternatives. Trump administration's new safety review guidelines for artificial intelligence appear to exempt Chinese models, while those from OpenAI and Anthropic are not included.

Energy and Commodities Markets Navigate Geopolitical Tensions

U.S. natural futures saw a slight increase in early trading. Oil futures saw a slight decline as OPEC+ signaled potential output increases. Gold prices have climbed above $4,200, with diplomatic progress in the Middle East easing inflation fears and reducing the likelihood of further interest rate hikes. Gold has jumped along with silver, for a third consecutive day as the possibility of an interim deal to reopen the Strait of Hormuz has lessened concerns about inflation and decreased the probability of the Federal Reserve raising rates. Copper futures in New York are trading near an all-time high, awaiting a decision on U.S. tariffs and tracking efforts to reopen the Strait of Hormuz, which has boosted demand for risk assets. U.S. stocks paused their four-day rally as investors assessed the latest earnings from major technology companies, while oil prices edged higher due to a renewed threat against Middle East shipping, tempering optimism surrounding U.S.-Iran talks. The Houthis, backed by Iran, have threatened to escalate their attacks in the Red Sea and claimed responsibility for a strike on a Saudi tanker, although Saudi Arabia has not commented on the claim. Yemen's Houthi group issued a new threat against Middle East shipping, causing oil prices to erase earlier declines and tempering optimism about U.S.-Iran negotiations.

Financial Sector and Dealmaking Activity

Brazil's Cia. Siderúrgica Nacional is seeking at least 15 billion reais, equivalent to $2.9 billion, for its cement business and anticipates receiving four bids as it plans to sell the entire unit. Vusion is currently in the initial stages of exploring strategic options, which may include a potential sale. Carlyle Group reported its highest distributable earnings in nearly four years, as the private equity firm continues to secure capital and maintain a record level of funds available for investment. Griffin’s Citadel fund surged 6% after acquiring a significant stake in Situational Awareness, and its stock-focused hedge fund has already seen approximately a 14% gain in July from this purchase. Ken Griffin’s flagship fund has purchased billions of dollars worth of AI stocks from Leopold Aschenbrenner’s firm. Volatile markets and substantial stock offerings have contributed to surging profits on Wall Street, leading bankers to anticipate larger bonuses this year.

Retail and Consumer Goods Show Mixed Performance

Dine Brands reported increased sales and a decrease in profit for the second quarter, as growth at IHOP helped to offset a decline at Applebee's. Shake Shack reported higher second-quarter sales, but its profit declined due to increased operating expenses. New York Times Company posted higher profits and revenue in the second quarter, although subscriber growth experienced a sequential slowdown. The New York Times reported an 11% increase in revenue, adding 280,000 digital subscribers in the second quarter. Uber Technologies recorded higher revenue in the second quarter, driven by growth in its delivery business, as the company continues to expand its volumes and active user base. Uber has pledged $10 billion to accelerate its robotaxi development, with CEO Dara Khosrowshahi highlighting strong bookings and record cash flow as the company funds its costly autonomous vehicle initiatives. Wayve Uber have received approval for supervised robotaxi rides in London, with Transport for London granting private-hire vehicle licenses to Wayve's autonomous vehicles, which will operate with a driver ready to take control when needed.

Automotive and Transportation Sectors Adapt

Honda Motor Co. has raised its profit outlook, as its motorcycle division, a weak yen, and strong U.S. demand for hybrid vehicles contributed to record quarterly results. Lucid, an electric vehicle manufacturer, reported a wider loss in its second quarter due to charges related to job cuts and ongoing challenges with competition and a broader downturn in EV demand.

Regulatory and Political Developments

Representative Shri Thanedar was defeated by a Democratic Socialist in a Michigan House primary, reflecting a trend of primary voters ousting incumbent Democrats this cycle. Dr. Abdul El-Sayed narrowly won the Democratic primary for Senate in Michigan against Representative Haley Stevens, setting the stage for a competitive race in November. U.S. Treasury has maintained its previous guidance for future debt issuance, indicating no change in the sizes of note and bond auctions through 2027, despite rising federal borrowing needs. The U.S. is initiating a ban on exports of various used critical minerals, a move designed to reduce reliance on China and secure essential raw materials for defense and other industries. financial regulator is modifying its rules concerning information sharing for initial public offerings, aiming to make London a more attractive destination for listings.

International Markets and Economic Trends

Kazakhstan plans to re-enter the yuan debt market this year, with Central Asia's largest oil producer seeking more affordable financing from China. China has sold long-dated yuan-denominated sovereign bonds in Hong Kong at record-low yields, demonstrating strong demand from global investors for offshore issuance. India is not considering an early termination of its program designed to attract deposits from its diaspora, with the central bank anticipating substantial inflows until the program concludes. India's Life Insurance Corp. share sale saw tepid demand from retail investors, indicating uneven interest after institutional bids led the government to increase the offering size. The central bank's unusual effort to repatriate savings has resulted in stronger-than-expected inflows, raising $40 billion from the Indian diaspora to support the weakening rupee. China's recent initiatives to curb quantitative trading have reduced volatility but also decreased turnover in the stock market.

Company News and Performance

Disney's third-quarter revenue increased by 7% to $25.2 billion, driven by growth in its experiences segment, with strong box office performance from "Toy Story 5" and a rebound in U.S. theme parks contributing to a rise in shares and an increased buyback plan. Comcast's Universal theme parks experienced a dip, contrasting with Disney's strong results. Uber Technologies reported higher revenue in the second quarter, propelled by growth in its delivery business, as the company continues to increase volumes and active users. Uber has pledged $10 billion to accelerate its robotaxi development, with CEO Dara Khosrowshahi highlighting strong bookings and record cash flow as the company funds its costly autonomous vehicle initiatives. Wayve Uber have received approval for supervised robotaxi rides in London, with Transport for London granting private-hire vehicle licenses to Wayve's autonomous vehicles, which will operate with a driver ready to take control when needed. Thomson Reuters has raised its revenue targets for the year following double-digit growth across its three main business segments in the latest quarter. SharkNinja has increased its full-year outlook after second-quarter sales rose due to strong demand across its product lines, led by cooking appliances, beauty products, and international markets. Siemens Energy's profit tripled as orders reached record highs, and the company anticipates achieving the upper end of its fiscal-year profit margin guidance, projected to be between 10% and 12%. Siemens Energy is reassuring investors about sustained demand for gas turbines into next year, citing power-hungry data centers and other global factors.

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