Public Markets 24 Hours

Last updated: August 19, 2026, 10:50 PM ET

Equities & Stocks

Moderna shares surged 177% after the biotech announced positive trial results for its mRNA cancer vaccine developed with Merck, inflicting a painful $5.5 billion loss on short sellers who had bet against the stock. U.S. stocks climbed broadly as Treasury buybacks eased bond market stress, with the S&P 500 posting solid gains following the government's intervention to rein in long-term borrowing costs. Asian stocks looked set to gain as pressure from the bond market eased, while Chip stocks steadied ahead of Fed meeting minutes, with Nasdaq futures edging higher despite recent AI-related weakness.

Treasury Market Turmoil

US Treasury announced it would at least double bond buybacks to $4 billion per operation, with Secretary Scott Bessent deploying debt buybacks as a sign of concern over rising yields. Bond yields dove sharply after the Treasury increased buybacks, sending the 10-year yield lower and stabilizing a market that had pushed borrowing costs to nearly two-decade highs. Long-bond ETF bets spiked a day before the surprise announcement, suggesting some investors were positioned ahead of the intervention. Treasury buyback moves sparked a rally across global bonds, with the dollar tumbling to its weakest in three months as investors reassessed rate outlooks.

Central Bank Moves

RBI maintained its net short dollar position remains "very manageable," with Governor Sanjay Malhotra citing earlier liquidity swaps and recent measures to bolster the balance of payments. PBOC moved to slow yuan gains with a weaker-than-expected daily fixing, signaling a desire for more gradual currency appreciation after the yuan climbed to its strongest against the dollar in over three years. Australia's central bank faced pressure as unemployment unexpectedly rose to 4.5%, supporting the RBA's view that the labor market is gradually loosening and prompting traders to pare rate-hike bets.

Corporate News & Deals

Stripe agreed to acquire AI startup Open Router for $7.5 billion, marking a significant expansion into the artificial intelligence economy as the payments giant seeks to capture infrastructure demand. CK Hutchison commenced international arbitration against Panama, seeking more than $1.5 billion in damages over the loss of its port investments, highlighting ongoing geopolitical risks in Latin American infrastructure. BlackRock and Oaktree took over MBS Group, a top supplier to Hollywood studios, in a $900 million debt deal as the entertainment industry slowdown continues to pressure service providers.

Commodities & Energy

Oil futures rose for a fourth straight session as transit remained restricted through the Strait of Hormuz, keeping supply concerns alive amid ongoing geopolitical tensions. Adnoc plans to trim crude shipments to Asian customers in August and September, with cuts already helping push up the flagship oil grade as supply concerns intensify. Coking coal futures surged in China as supply continues to tighten following the deadly mining accident in Shanxi three months ago, raising concerns about energy security.

Credit & Fixed Income

JGBs faced a critical test as Japan's 20-year bond auction struggled to attract buyers amid a global debt selloff that has pushed long-term yields to multi-decade highs. Korean bonds saw their yield curve steepen to the highest since 2021 as the long-bond slump deepened, reflecting broader regional stress in fixed-income markets. Egypt's bond risk premium fell to 2014 lows as record foreign-currency reserves and IMF confidence helped ease a decade of debt distress for the North African nation.

Geopolitical & Regulatory

Singapore authorities began investigating iron ore trader Radiant World after receiving reports, adding to growing regulatory scrutiny of commodity trading firms. India's market regulator banned a Mauritius-based JPMorgan unit from the capital market over alleged manipulative trading in the newly introduced auction-based system. UAE trade halted with Iran as the Gulf nation announced a total embargo on transactions, escalating regional tensions amid broader Middle East instability.

Private Markets & Investment Flows

Private credit risks continue mounting as stress spreads across portfolios, with regulators and investors paying close attention to the strain in the direct loan market following 2025 bankruptcies. CPPIB saw departures across senior ranks as the healthcare of Ontario pension plan's private equity head left to pursue other opportunities, raising questions about leadership stability at major institutional investors. SDC Capital considers a $1 billion Singapore REIT IPO, joining a wave of infrastructure-focused offerings as digital assets attract growing investor interest.

Economic Indicators

Australia's unemployment rose unexpectedly in July, with the rate hitting 4.5% as the labor market shows signs of gradual loosening. UK inflation picked up in July, driven by a surge in household energy costs and reaching the highest annual rate since March, complicating monetary policy decisions. US debt hit $40 trillion as America's borrowing binge continues, with public spending surges despite promises to restore fiscal order and reduce the debt burden.

Market Sentiment & Outlook

Gold held near $4,500 as US Treasury buybacks sent yields lower and the dollar weakened, providing support for precious metals amid ongoing market uncertainty. Dollar index fell 0.76% to 95.34, marking the third decline in four trading days as Treasury interventions continue to influence currency markets. European optimism returned to pre-war highs as investors increasingly favor European stocks over US peers, attracted by the region's robust economic outlook amid surging AI spending.