Last updated: August 21, 2026, 11:22 AM ET
Gold and Bitcoin Surge on Treasury Buyback Plans
Gold climbed back above the $4,600-an-ounce mark as investors viewed the U.S. Treasury's plans to expand bond buybacks as a sign of fiscal stress, sparking a fresh round of safe-haven demand. Bitcoin jumped more than 9% to hit a peak of $79,455 on Friday, its highest level since late May, as a combination of catalysts including institutional demand and debt concerns converged. Gold extended gains on a weaker U.S. dollar and fiscal debt concerns after Treasury Secretary Scott Bessent said he is prepared to expand buybacks of U.S. debt. The dollar fell and could remain weak after the Treasury's buyback announcement, according to market analysts. South Africa's rand strengthened below 16 per dollar, erasing its Iran war losses as the greenback extended declines sparked by the US Treasury's plan to buy back longer-end bonds.
Bond Market Volatility and Treasury Intervention
Bessent's bond buyback pledge prompted comparisons with policies in Japan, where efforts to contain borrowing costs resulted in prolonged currency weakness. Wall Street turns sour on once-buzzy space stock after 73% rout, with analysts rushing to slash their price targets on spacecraft and satellites manufacturer York Space Systems Inc. BofA's Hartnett sees pressure on risk assets if bond plan fails, warning that a failure in the US Treasury's plan to tame long-term bond yields would pressure the dollar and spur short bets against riskier assets. Goldman Sachs says slowing inflation is the best path to lower US yields, arguing that for all the US Treasury's efforts to stem rising borrowing costs, cooling inflation remains the most compelling way to lower bond yields. Treasuries steady as traders await Bessent's next move, with the turbulent stretch for the US bond market leaving traders heading into Friday's session with questions about what Treasury Secretary Scott Bessent's next move will be.
US Stock Market and Retail Performance
US stock futures rose in early trading Friday, putting the Nasdaq 100 on track to end a five-day losing streak as bond yields stabilize and Bitcoin soars. Walmart posts slowest sales growth in years as Americans tighten wallets, with the retailer planning to use almost $2.9bn in tariff refunds to deliver price cuts for squeezed American consumers. BJ's Wholesale logs higher profit and revenue as budget-conscious shoppers continue to flock to its stores in search of value. Ross Stores boosts annual profit outlook for a second time this year, signaling that the discount retailer's momentum is holding up. Starbucks is laying off more than 200 workers in a streamlining drive, with cuts affecting the company's corporate staff in technology and coffeehouse development.
European Markets and Banking Sector
European stocks are hiding bargains in an overlooked place as European companies just had their best earnings season in years. Italy's Monte dei Paschi makes $40 billion move to buy rival banks, with all-share bids for Banco BPM and Banca Generali coming as it fights off a takeover offer from Intesa Sanpaolo. Monte Paschi offers to buy BPM and Banca Generali for €34 billion, seeking to prevent being bought by rival Intesa Sanpaolo SpA. HSBC spends $68mn on biggest cull of senior bankers since financial crisis, with the reduction coming as Europe's largest lenders shed the largest number of highly paid bankers since 2020. UK posts unexpected budget deficit of £1.8bn in July, underscoring the challenge facing Chancellor John Healey ahead of his first Budget.
Technology and Semiconductor Stocks
Nvidia looks well placed to benefit from the next stage of the AI boom, with the world's biggest chip company using its balance sheet to seed new markets and a new business model. Nvidia in talks to invest in data-center power developer Cloverleaf Infrastructure, with the deal involving an investment of several hundred million dollars and cementing the chip maker's role in developing data-center projects at the earliest stages. Alibaba-backed robot firm seeks $3 billion value in new funding, with Chinese robotics startup Dexmal seeking a valuation of around 20 billion yuan ($3 billion) in an ongoing funding round. Super Micro clears senior management in alleged smuggling scheme, ending an investigation into an alleged scheme by two employees and a contractor to smuggle Nvidia chips to China.
Energy and Commodities
Oil futures slipped but remain on track for significant weekly gain, with oil prices heading for a weekly gain of around 5% after Trump vowed to launch sweeping measures aimed at further isolating Iran's economy. Oil extends rally as U.S. threatens economic measures, with oil futures rising for a fifth straight session as the U.S. planned what President Trump called unprecedented economic isolation on Iran. Oil surges as US targets Iran economy, with oil heading for a significant weekly increase as traders awaited details on a US campaign to isolate Iran's economy. Panama Canal to cut daily transits as El Niño grips region, with the authority planning to reduce the number of passages for only the second time due to drought conditions. Aluminum premium slips as US set to cut tariffs on Canada metal, with a key regional price benchmark for aluminum delivered to the US market tumbling after the Trump administration indicated it would lower tariffs on certain Canadian exports of aluminum.
Cryptocurrency and Digital Assets
Bitcoin climbs benefiting from higher yields as one asset benefiting from higher yields is bitcoin, which briefly neared $80,000 early this morning. Crypto stocks continue to surge after upbeat White House meeting, with President Trump reaffirming support for the Clarity Act, which would allow for greater integration of Bitcoin and its peers into the U.S. economy if passed. Bitcoin's short squeeze leaves rally hunting for real buyers, with Bitcoin extending gains to beyond $72,000 on Thursday after a record squeeze forced bearish traders out of the market. World Liberty's stablecoin becomes a partisan target, with Elizabeth Warren joining some Democrats who voted for the Genius Act in criticizing the crypto industry. Citi turns negative on dollar over buyback risk, with currency strategists at Citigroup Inc. turning bearish on the US dollar in the near term as markets gear up for a less hawkish Federal Reserve and more debt buybacks from the US Treasury.
Asian Markets and Currency Movements
Hua Hong, Weichai Power to join Hong Kong's stock benchmark, with Hang Seng Indexes Co. adding Hua Hong Grace Semiconductor Ltd. and Weichai Power Co. to Hong Kong's equity benchmark. Hua Hong, Kingboard, Zijin Gold may join Hong Kong's stock index, with Hang Seng Indexes Co. potentially adding chipmaker Hua Hong Grace Semiconductor Ltd., AI-related firm Kingboard Laminates Holdings Ltd. and miner Zijin Gold International Co. Japan's inflation rises as central bank weighs rate increase, with the Bank of Japan under pressure to act on rates in September as the yen weakens despite joint intervention. Japanese inflation hits 1.9% as BOJ eyes rate hike, with the central bank facing pressure to act on rates in September as the yen weakens despite joint intervention. Japan Lintec's stock slides as major shareholder sets exit plan, with Lintec Corp. shares falling to a three-month low after its largest shareholder announced plans to dispose its stake.
Corporate Earnings and Profit Outlooks
Nibe Industrier shares rise as heat pumps, data centers drive sales growth, with the Swedish heating company's shares rising more than 8% after it reported sales and operating profit growth on strong heat-pump demand in Europe and the U.S. Inghams shares drop 11% on cost outlook, with Inghams Group Ltd. shares dropping the most in about two months after the Australian poultry producer flagged that higher feed, diesel and packaging costs caused by the war in the Middle East would impact margins. TAMKO Building Products sees earnings drop after debt-funded payout, with roof shingle-maker TAMKO Building Products reporting a more than 50% drop in earnings just weeks after borrowing money to fund a dividend to its owners. Clearlake Capital's FinThrive posts earnings drop, taps line of credit, with the company saying earnings fell 17% in the second quarter as it drew on a $150 million credit line to bolster liquidity. Samsung to return record $80bn to shareholders, with the South Korean chipmaker having come under pressure to distribute more of its bumper profits from the AI boom.
Fixed Income and Credit Markets
India bond traders left reeling after surprisingly hawkish RBI minutes, with yields potentially drifting higher as inflows from the foreign-currency deposit scheme begin to fade. India permits rare tax-free sugar imports to cool prices, with India, the world's second-biggest sugar producer, allowing mills and refiners to import duty-free raw sugar in an effort to tame record local prices. India prop traders see derivatives profits fall to $47b as market lags, with proprietary trading firms earning less from Indian equity derivatives as regulatory curbs aimed at cooling an options boom took hold. Australian bond futures near record highs on hedging demand, with positions on Australia's three-year bond futures having risen toward an all-time high as the nation's growing debt pile fuels demand for hedging. US housing affordability gauge worsens for first time since 2023, with a key measure of US housing affordability worsening for the first time in almost three years as higher borrowing costs soaked up a bigger chunk of earnings for new homebuyers.
M&A and Corporate Actions
James Hardie selling European Fermacell business for $980 million to Holcim, with James Hardie Industries selling its European Fermacell business to Swiss building-materials company Holcim as it seeks to focus on higher-growth and higher-return markets. Holcim acquires James Hardie's European business for €840 million, expanding its building, sustainable flooring and walling solution offerings. Broadcom seeks more than $60 billion in latest AI debt deal, with Broadcom Inc. in talks with a group of lenders to raise more than $60 billion in debt for an AI chip financing deal that will benefit Anthropic PBC and other companies. Anthropic adds Citigroup to top IPO banks, with Anthropic PBC set to add Citigroup Inc. to the banks working on its initial public offering as Wall Street jostles for roles on the artificial intelligence listing. DayOne seeks $237m loan for Hong Kong data center ahead of US IPO, with Day One Data Centers seeking a HK$1.86 billion ($237 million) loan, adding to the company's recent borrowing spree ahead of a planned US initial public offering.
Economic Indicators and Policy
Canada retail sales slip after rising a sixth straight month in June, with the value of retail trade in the country having risen 0.6% in June from the month before to a seasonally adjusted 74.28 billion Canadian dollars, the equivalent of about US$53.87 billion. US leading indicators ticked up in July, with the Conference Board's Leading Economic Index rising by 0.2% to 99.5, indicating that moderate growth could be coming. India's economic activity edges up as services improve, with India's economic activity edging up in August from a four-year low last month as a pick up in services offset a sharp slowdown in manufacturing. RBI Deputy Gupta sounds upbeat on economy, sees 7% growth, with India's economy potentially outperforming the central bank's forecasts this financial year as growth closer to 7% leaves policymakers watching for the need to raise borrowing costs. Nellie Liang on Treasury buybacks and rising yields, with the former Treasury official discussing what Scott Bessent is up to with his bond market intervention strategy.
Emerging Markets and Global Developments
China sentences Evergrande founder to life in prison, capping the downfall of a property empire whose collapse set off a prolonged crisis in the Chinese economy. Evergrande creditors owed $45 billion face more complex path, with China Evergrande Group's creditors having known for years they'll only get pennies on the dollar back in one of the country's biggest ever liquidations. Dangote offers East Africa nations 30% stake in new refinery, with Dangote Group offering East African countries a 30% equity stake in the giant refinery planned for the region. China materials stocks emerge from slump as new market leaders, with China's materials stocks having surged to the top of the market over the past month as rallies in gold and copper transformed one of this year's lagging sectors into a market leader. Asia's smaller AI firms are leading EM's bounce back this month, with the tech rally in emerging-market stocks spreading across new companies as investors rotate beyond chipmaking heavyweights into smaller names poised to power data centers.
Market Sentiment and Analyst Views
Wall Street turns bearish on once-buzzy space stock after 73% rout, with analysts rushing to slash their price targets on spacecraft and satellites manufacturer York Space Systems Inc. Bessent's market intervention fails to soothe investors, with the US Treasury's bond buyback pledge that whipsawed markets this week prompting comparisons with policies in Japan. Stocks and bonds steady at end of tumultuous week, with fears about the war in Iran, government deficits, the economy and corporate borrowing stirring global markets. Markets brush off Treasury's buyback plans, with mixed results from Walmart and other retailers offering more gloom on the health of the American consumer. Quant funds rocked as Treasury boosts buybacks and Moderna shares leap, with the tumultuous session putting further pressure on momentum trades that have been unsettled since the AI-related stock sell-off.