Last updated: August 6, 2026, 10:04 PM ET
US Equities & Macro
US stocks in a jittery session as doubts resurfaced about the reopening of the Strait of Hormuz, with the Dow industrials leading losses and breaking its winning streak. The Dow dropped 460 points, dragged lower as oil prices gained amid renewed uncertainty in the Middle East. yields rose ahead of Friday's payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures. The dollar notched its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East. Traders are rushing to hedge against swings in the US dollar ahead of Friday's payroll numbers as Federal Reserve Chairman Kevin Warsh leaves Wall Street guessing at his next move.
Investors are also weighing the impact of Washington policy decisions on bonds and the dollar, with questions emerging over whether the "Sell America" trade is back. Trump administration has agreed to roughly $4 billion in settlements this year to cancel planned offshore wind projects, including a $1.22 billion deal with German utility RWE AG announced Thursday. The administration will also impose a minimum import price for polysilicon, a key component for semiconductors and solar panels, as well as tariffs for products made with the material. The Fed's rarely used Fima repo facility saw no activity for an eighth straight week, suggesting Japan didn't use the tool in its latest effort to support the yen.
Asia-Pacific Markets
Japanese stocks were lower in early trade, with the Nikkei falling 0.7% as uncertainty over the Middle East conflict and energy costs persisted. Holdings Corp. tumbled by the most on record in Tokyo trading after the medical equipment maker reported first-quarter results that fell short of expectations. JGB futures in early Tokyo trade, tracking overnight price declines in the US Treasury market. currencies consolidated against the dollar ahead of the US nonfarm payrolls report due later in the day.
The yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains, fueling speculation among traders that authorities may step into the market again. US European officials communicated only after Washington's historic intervention to prop up the yen, with Christine Lagarde and Scott Bessent speaking after the fact. The US is bolstering the yen, as it did with the Argentine peso, and the reasons are not solely economic.
Japanese companies have already sold more corporate bonds with investor protection this year than in all of 2025, as lower-rated borrowers increasingly turn to the bond market instead of relying solely on bank loans. Japan's Topix stock index is poised for its biggest overhaul, with more than 600 companies — over a third of its constituents — likely to be gradually removed under new eligibility rules. Daiichi Life Inc. has been stepping into bankers' shoes and contacting companies directly to see if they want to issue bonds, in an unusual investment tactic for an insurer.
Oil, Gold & Commodities
Oil rose in early Asian trade amid concerns over supply disruptions in the Middle East, with prospects for a lasting agreement to reopen the Strait of Hormuz remaining elusive. Oil extended gains on reports that Iran attacked "hostile targets" in the Strait of Hormuz, with Tehran seeking to bar US ships from the critical waterway in a deal with Oman. US imports of Saudi Arabian oil dropped to zero in July, the first time that's happened for an entire month since 1985, according to preliminary government data.
Gold edged higher in early Asian trade, with markets monitoring signs of diplomatic progress in the Middle East conflict. Gold moved in a narrow range as traders assessed the impact of a reported Iranian attack in the Strait of Hormuz on the Federal Reserve's path for interest rates. Comex gold 0.09% lower at $4,242.00, with gold and silver prices dropping and snapping two- and three-day winning streaks, respectively.
Repeated heat waves and droughts this summer have put Europe's power system on high alert, with shrinking hydro reserves in key markets threatening to drive electricity prices higher later in the year. Record India prices are spurring mills to advance cane crushing in the upcoming milling season as the government seeks to bolster supplies and rein in prices ahead of the festival period. Global sugar traders are increasingly losing trust in what is widely considered the most important data piece in the market: the cane-crush indicators from the world's top exporter Brazil. Rising cocoa are pushing processors outside the candy aisle, with Philippines-based craft chocolatier Auro Chocolate struggling with leftover powder from grinding cocoa beans.
Rates, FX & Central Banks
Chinese banks expanding direct settlement to aid the yuan's global role, with domestic banks adding new foreign currencies available for direct settlement to bypass the dollar in cross-border trade. The Colombian peso continues to be the best performing currency in emerging markets as investors shrug off the central bank's efforts to slow the currency's rally and instead focus on its carry appeal. Alphabet Inc. received about $115 billion of orders for its latest jumbo bond sale, signaling renewed investor appetite for debt tied to the artificial intelligence boom after a recent selloff.
Corporate Earnings & Deals
Airtel is set to list its $10 billion Africa finance business in London, with the Indian government also selling a stake in LIC. Holdings Co. acquiring Toronto-based Jamieson Wellness Inc. in a deal that values the Canadian vitamins and supplements maker at about C$2 billion ($1.4 billion). Nielsen Holdings agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion. Partners Group nearing a €2 billion deal for beauty group Aroma-Zone, with French asset manager Eurazeo in talks to sell its stake in the group that sells face serums and food supplements.
DraftKings Inc. second-quarter sales and earnings that missed analysts expectations as the sportsbetting industry confronts a new challenge from prediction-market players. The online sports betting company posted a loss of $67.6 million for the second quarter, compared with a profit of $157.9 million a year earlier. Options traders were piling into bullish wagers on Draft Kings ahead of the sports betting firm's earnings report.
WPP shares more than 25% as its overhaul begins to bear fruit, with improved results following the London-listed advertising group's root-and-branch review to streamline its businesses. European indexes rose in early trade, with the Europe-wide Stoxx 600 index up and led by consumer-facing stocks and healthcare. Swiss Re first-half profit beat estimates as the re-insurer saw all key business units perform in line with targets, while the firm announced a fresh round of cost cuts. Germany's Merck KGaA raised its outlook on robust results and easing currency headwinds, pointing to stronger demand in the life-science and electronics markets and resilience in its healthcare operations. Zurich Insurance AG reported a 13% gain in profit for the first half of 2026 and said it doesn't expect to have any material exposure to the impact of extreme heat and ongoing wildfires.
Rheinmetall cut its sales outlook after Germany scrapped a warship project, with the CEO saying moving into naval was still "the right decision" but admitting to have been "astonished" the F126 project was dropped. Honeywell Aerospace shares plunged on failure to overcome supply snarls, with the group slashing its outlook as bottlenecks limit the ability to convert strong demand for advanced parts into sales. Siemens shares as Digital Industries order growth missed expectations, with the division facing excess customer inventories while weak demand in China and cautious spending delayed a broader recovery.
American International Inc. reported second-quarter results that surpassed Wall Street expectations, roughly two months after Eric Andersen took over as chief executive officer. Consolidated Edison a second-quarter profit of $308 million, up from $246 million a year earlier. reported revenue increased to $1.04 billion from $914 million, with Wall Street expecting $1.03 billion. Beverage's 20% rise in second-quarter sales was driven by growth among customers outside the US. Keurig Dr Pepper logged higher sales in the second quarter and said it continues work to separate into two companies. reported higher profit and sales in the second quarter, boosted by higher prices and volumes, as the company continues working to turn around its business ahead of its acquisition by Kimberly-Clark.
Coors Beverage said second-quarter sales fell as the company tries to balance sluggish customer demand with higher supply costs. Lyft's second-quarter gross bookings rose to $5.5 billion, but the rideshare company expects bookings in the current quarter to rise at a slower pace of 15% to 19%. Sweetgreen lowered its full-year outlook due to the cyclosporiasis outbreak, now expecting same-store sales to drop between 7% and 8% due to lower demand. Papa John's cut its outlook for the year and suspended its dividend, as the pizza chain's North American business continues to face a soft consumer environment. Brands International's profit rose in the second quarter, driven by a standout performance at Burger King US that bucked a broader trend of slowing fast-food demand. Burger King's revamped Whopper was helping win market share, with the company president saying the burger was striking a blow in the fast-food burger wars. Krispy Kreme again narrowed its loss and expanded margins during its latest quarter, as the doughnut chain continued to make progress with its turnaround plan.
Warner Bros. Discovery Inc. reported a steep drop in sales as it copes with the loss of National Basketball Association rights and a movie lineup that compared poorly with last year. The company's CEO expressed confidence the Paramount deal will close, with streaming revenue improving as HBO Max expands its subscriber and advertising base. Companies reported higher second-quarter revenue as its market share in both purchase mortgages and refinancings rose. Airbnb boosted its full-year forecast on strong demand as AI bets pay off, now expecting revenue to increase by at least a mid-teens rate this year, up from its prior projection for growth in the low- to mid-teens. posted growth in the second quarter but shared a full-year sales outlook below Wall Street estimates, citing lower usage from a major AI customer.
SoftBank Group Corp. reported a smaller-than-expected decline in quarterly net income, helped by a rally in its chip-stock holdings while it awaits further gains from its bets on OpenAI. SoftBank used its OpenAI stake to borrow $10 billion, vowing to become a leading builder of AI data centers and a major investor in AI-powered robotics. East African Breweries Plc's annual profit grew at the fastest pace in four years, even as accelerating inflation in its home market Kenya eroded spending power. Wizz Air high fuel costs may wipe out profits, with the low-cost carrier swinging to a loss of almost €200 million between April and June. Conoco Phillips chief Ryan Lance is stepping down after 14 years, with the third-largest US oil and gas company changing leadership as profits climb on war-driven price surges. Suncor Energy Chief Executive Officer Rich Kruger will be stepping down next April and replaced by Peter Zebedee, and in a surprise move, its chief financial officer is also departing. Diageo boss Dave Lewis is staking the company's revival on canned cocktails and Guinness, unveiling plans to restore growth along with a suite of cost cuts. Mike Ashley Harvey Nichols is in a "death spiral," casting doubt over the department store chain's prospects even as he vies to acquire it.
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