Last updated: August 5, 2026, 2:31 PM ET
US Equities Show Mixed Performance Amidst Earnings Season and Economic Data
The Nasdaq Composite experienced a decline after an earlier rally, while the Dow Jones Industrial Average and the S&P 500 advanced. Stocks saw of their momentum wane around midday, following a strong morning performance. The S&P 500 is poised for another record, sustained by the ongoing narrative of robust artificial intelligence spending. Futures climbed as the latest earnings reports indicated significant demand for and investment in AI technologies. Nasdaq 100 experienced a $3.5 trillion surge in market capitalization over four days, driven by strong earnings that boosted investor confidence. tech euphoria returned in just four days, marking a complete sentiment reversal from the previous month.
Corporate Earnings and Market Trends
Boeing Co. and Lockheed Martin Corp.'s rocket joint venture is planning to sell bonds in the private market to refinance its existing debt. SpaceX, Elon rocket company, reported soaring AI spending in its first earnings report since its IPO, with capital expenditures jumping nearly seven times from the previous year. Despite these increased outlays, SpaceX's shares sank on these AI spending plans, as the company spent $15.8 billion on AI projects in the second quarter and intends to continue this high level of investment. SpaceX's significant spending plans also unnerved investors, even as the company reported that its quarterly revenues nearly doubled. rocket company's substantial AI expenditures have rattled investors, contributing to a slump in its stock.
Commodities and Global Trade
Gold prices jumped 4% to above $4,300, driven by a weaker U.S. dollar and lower Treasury yields, with market participants closely monitoring Middle East developments and U.S. economic data for monetary policy cues. Copper futures on New York's Comex climbed to a record high amid speculation surrounding tariffs and anticipation of the reopening of the Strait of Hormuz, which boosted demand for risk assets. U.S. crude oil inventories posted a weekly increase of 2.5 million barrels for the week ended July 31, contrary to expectations of a 1.2 million barrel decrease. U.S. diesel surged to a record high last week as domestic stockpiles continued to fall, signaling an intensifying global scramble for diesel that is increasingly draining U.S. supplies. U.S. natural futures saw a slight increase in early trading. Oil futures experienced fluctuations as traders remained cautiously optimistic about a potential deal between the U.S. and Iran to reopen the Strait of Hormuz, which could restore millions of barrels of daily shipments. Iran stated it has reached an agreement with Oman regarding the Hormuz shipping route, indicating a determination to maintain a degree of control over the chokepoint. Treasury yields mixed as mediators worked on reopening the Strait of Hormuz.
International Markets and Deals
Bodycote, FTSE 250 industrials group, has received separate private equity bids from CVC and Veritas, valuing the company at approximately £1.8 billion including debt. Partners Group is nearing a €2 billion deal for the beauty group Aroma-Zone, with French asset manager Eurazeo in talks to sell its stake in the company. Kazakhstan plans to re-enter the yuan debt market this year, seeking to secure cheaper financing from China through a $500 million deal in panda bonds. China sold long-dated offshore yuan-denominated sovereign bonds in Hong Kong at record-low yields, reflecting strong global investor demand for such issuances. Malaysia continues to attract substantial foreign investor interest despite increasing political uncertainty following setbacks for Prime Minister Anwar Ibrahim’s coalition in local elections. Australia's stock reached a record high, buoyed by easing concerns over the U.S.-Iran conflict and positive domestic economic signals. European stocks near a record high, with declines in HSBC Holdings Plc and Novo Nordisk A/S offsetting earlier gains.
Financial Sector and Investment Activity
BC Partners’ credit arm is reportedly leading a group of investors in exploring the possibility of providing financing to LIV Golf. Carlyle Group observing a thaw in capital markets, which is accelerating the pace of investment exits across various industries, according to Chief Financial Officer Justin Plouffe. Paul Malloy, who managed approximately $300 billion in municipal assets at Vanguard Group, has departed the investment firm after more than two decades. Barclays Plc HSBC Holdings Plc are noting increased investor interest in inflation-protected bonds, driven by concerns that the Federal Reserve may be slow to address inflation. The U.S. Treasury has maintained its previous guidance for future debt issuance, signaling no changes to note and bond auction sizes through 2027, despite rising federal borrowing needs. Gabon has emerged as a top performer in emerging sovereign bond markets, fueled by expectations that an International Monetary Fund program will help it avoid a debt restructuring.
Technology and Media Sector Performance
New York Co. stock plunged more than 13% as its subscriber growth slowed, although total revenue for the second quarter climbed 11% to $762.5 million. Shopify has signaled revenue acceleration, forecasting increased third-quarter sales growth driven by artificial intelligence-powered search tools and broad merchant expansion. Technologies reported higher second-quarter revenue but issued a cautious outlook, citing continued heavy investment in autonomous vehicles and pledging $10 billion to win the robotaxi race. Disney's shares rose as the entertainment group increased its share buyback plan, benefiting from strong performance in theme parks and the release of "Toy Story." Disney's theme parks and cruise line revenue increased by 11% in the latest quarter, with domestic parks reporting strong results, while Comcast's Universal Parks experienced a dip. Thomson Reuters raised its revenue guidance for the year following double-digit growth across its three major business segments in the most recent quarter.
Automotive and Industrial Sectors
Honda Motor its profit outlook by 30%, driven by record quarterly results attributed to its motorcycle business, a weaker yen, and strong U.S. demand for hybrid vehicles. Honda doubled its profit and lifted its guidance, benefiting from a weak yen and robust U.S. demand. Siemens Energy saw its profit triple and orders reach record highs, with the company expecting to achieve the higher end of its fiscal-year profit margin guidance, projected between 10% and 12%. Siemens Energy's CEO expressed confidence in a solid outlook due to broad electrification trends, noting sustained demand for gas turbines into the next year, with power-hungry data centers being a significant driver. The aviation supply chain is experiencing buoyancy, although airlines' struggles could eventually impact their suppliers.
Consumer Goods and Retail
Brands raised its adjusted earnings outlook, as customers at its Outback Steakhouse chain are opting for more expensive steaks. Shake Shack higher second-quarter sales, though profit declined due to increased operating expenses. Dine Brands recorded higher sales and lower profit in the second quarter, with growth at IHOP helping to offset a decline at Applebee’s. Kraft Heinz a narrower loss and lower sales in the second quarter but increased its sales outlook as it aims to mitigate higher supply costs by raising prices. Heineken expressed an optimistic outlook for the full year after sales volumes picked up pace, despite weakness in the Americas. Coca-Cola HBC reported an increase in net profit, driven by higher volumes and a rise in revenue per case, with growth in both its sparkling and energy drink segments. SharkNinja raised its full-year outlook following a jump in second-quarter sales, attributed to strong demand across its product lineup, particularly in cooking appliances, beauty products, and international markets.
Health Care and Pharmaceuticals
Eli Lilly and Novo Nordisk have raised their profit outlooks due to soaring demand for their weight-loss drugs. Eli Lilly higher net income and revenue in the recent quarter, fueled by continued surging demand for its GLP-1 weight-loss drugs. CVS Health is partnering with Eli Lilly to revamp its weight management program, and has lifted its full-year outlook following a nearly threefold increase in its second-quarter profit. Sandoz Group higher second-quarter sales, driven by strong performance in its biosimilar segment and a return to growth in generics. fastest-growing Ebola outbreak is becoming more deadly, as too many patients are reaching treatment only when the disease has become critical.
Energy and Utilities
The U.S. Treasury announced a year-long ban on the export of scrap tungsten and certain used critical minerals, as part of an effort to reduce reliance on China for materials essential to defense and other industries. Trump administration's new AI safety review guidelines appear to exempt Chinese artificial intelligence models, while those from OpenAI and Anthropic are not included. The Pacific island of Palau is fundraising for a transition to clean energy, aiming to reduce its reliance on diesel.
Political and Geopolitical Developments
Colombian authorities intercepted a bus rigged with explosives in the country’s southwest, highlighting security concerns ahead of President-elect Abelardo de la Espriella’s inauguration. Federal and state officials are urgently addressing an assault on the nation’s water supply, which they believe to be the work of Iranian hackers. At least 17 people were killed in a Russian missile attack on Kyiv, which exploited Ukraine's depleted air defenses as the country faces a severe shortage of interceptor missiles. launched strikes on Lebanon after accusing Hezbollah of violating a cease-fire, while negotiators from both sides were holding talks in Rome aimed at achieving a long-term diplomatic settlement. The Houthis have threatened to expand their attacks in the Red Sea and claimed to have struck a Saudi tanker, though Saudi Arabia has not commented on the claim. Supplies of an ultra-refined form of aluminum crucial for fighter jets are tight, following damage to a plant in the UAE caused by drones, exposing a risk in the U.S. military's aluminum supply chain highlighted in a Pentagon war game.
Technology and AI
SpaceX's substantial spending plans have unnerved investors, even as the group reported that its quarterly revenues nearly doubled. The Elon Musk-led rocket company spent $15.8 billion on AI projects in the second quarter and has no intention of slowing down this investment. SpaceX shares a decline due to these significant AI spending plans. The S&P 500 is poised for another record, as the narrative surrounding AI spending continues to hold strong. Futures climbed on Wednesday, with the latest earnings reports indicating robust demand for and spending on artificial intelligence. A dramatic turnaround in technology stocks has led to a $3.5 trillion increase in the Nasdaq 100’s market capitalization in just four days, driven by strong earnings that have emboldened investors. Sentiment in the market has completely shifted from the previous month to a strong positive outlook. Whale Rock Management's flagship hedge fund experienced a 21.7% drop in July, erasing about half of its year-to-date gains, making it one of the largest losers during the recent AI selloff.
Real Estate and Housing
Home-building activity is slowing down, yet lumber prices remain at multi-year highs, driven by steep duties on Canadian lumber, wildfires, and sawmill closures that have reduced supply. Compass Inc. jumped as much as 15% in post-market trading after the real estate services firm announced that cost savings from acquiring competitor Anywhere were progressing ahead of schedule.
Other Market News
U.K.'s top financial regulator is revising rules related to information sharing for initial public offerings, aiming to make London a more attractive destination for listings. India's two equity exchanges, the National Stock Exchange of India Ltd. and BSE Ltd., introduced an auction mechanism on Monday to determine the closing prices for over 200 stocks with derivatives contracts, a move that is causing confusion among traders. The U.S. Treasury's move to retain its previous guidance for debt issuance signals no change in note and bond auction sizes through 2027, even as federal borrowing needs increase.