Last updated: August 25, 2026, 3:38 PM ET
Equities
Global equities climbed as chipmakers rebounded, while Bitcoin briefly topped $80,000 and oil extended declines. U.S. stocks started the week on a mixed note, with the Nasdaq dragged lower by chip stocks and the Dow edging higher. A drop in oil prices was offset by concerns about debt incurred to fund the AI boom, leaving major indexes mixed at the close.
European stocks advanced as a pullback in oil prices offered relief from inflation concerns and bond-market pressures. UK stocks extended their gains in the best winning streak since May. European semiconductor shares were in positive territory following Monday's selloff.
Software investors are betting that struggling stocks have found their footing after a strong performance over the past month, with earnings this week set to confirm whether the rally has staying power. Infrastructure stocks rallied on defense spending pushes and AI hedging demand.
The FTSE 100's winning streak comes as Vistry shares jumped 18% after securing a £350 million UK government contract to build 3,028 homes over 10 years. Tungsten West soared after securing an investment of up to £71 million ($97 million) from the UK government for the restart of a historic tin and tungsten mine. Northam Platinum jumped after disclosing it received an unsolicited approach from a "major producer" of platinum-group metals in South Africa.
Rates & Bonds
Treasuries gained as a decline in crude oil eased inflation concerns and pressure on Treasury Secretary Scott Bessent, who has been moving to halt a months-long selloff that pushed longer-dated yields higher. Global bond markets stabilized as investors weighed reports that the Treasury might deploy its nearly $1 trillion general account to finance increased buybacks of long-end securities.
The Treasury Department said it could begin to buy back more of its debt, and bond market investors are assessing the potential effects on borrowing costs. Stanley Druckenmiller, the billionaire investor who mentored Bessent, suggested his former pupil is making a mistake by wading into bond markets. "Governments defending prices against fundamentals always lose," Druckenmiller warned, as Bessent gets Drucked by his former mentor's critique.
Rising interest rates are a signal of trouble ahead, and artificially suppressing them heightens the danger, according to a Wall Street Journal editorial. The problem with buying the dip in bonds is that government intervention often signals underlying distress. Bessent's plans to intervene have drawn widespread criticism, including from a prominent former mentor.
Mexico's bonds are now trading near junk status after a $130 billion bailout of Pemex, a dramatic fall for a country that was an A-rated borrower just a few years ago. South Africa's rand strengthened to a six-month high against the dollar and bonds rallied after an auction of government debt attracted the strongest demand in almost three months. Hong Kong had its narrowest trade deficit in over a year as export growth held up better than expected in July, with shipments to mainland China reaching a record high.
Commodities & Energy
Oil prices extended losses, falling more than 2.5% as investors anticipated lower supply risks from fresh U.S. sanctions than from military escalation in the Middle East. Oil fell further as a US plan to ramp up economic pressure on Iran so far spared the country's trading partners from harsher measures. US natural gas futures fell alongside crude and European gas futures as the Iran pressure plan seemed less likely to affect physical supply than investors expected.
Ukraine's double-barreled drone strikes are snarling Russian oil flows, with Black Sea strikes hampering oil flows from Novorossiysk while crude processing tumbles. Russia is discussing extending its ban on diesel exports as Ukraine continues to strike the nation's refineries at a record pace. Russia is also weighing a suspension of the floating export duty on wheat, barley and corn through the end of 2026 as exporters face mounting logistics problems.
Satellite imagery shows a surge in Iraq's oil loadings from its Persian Gulf export installations, with seven tankers collecting cargoes on Monday. Asian refiners are on course to nearly double their purchases of US crude for September from a month earlier, squeezing domestic fuel makers. Iran's oil exports face new pressure as Iranian tankers gather off Sri Lanka's coast, cut off from home ports by the US blockade.
Gold futures were broadly stable at $4,696.40 a troy ounce after hitting their highest level since mid-May. European natural-gas prices traded at their highest in more than three years as supply constraints and low storage levels continue to worry investors, holding above €68. US natural gas futures inched up with a few more weeks of hot weather-driven demand expected to support power-sector use.
FX & Crypto
The WSJ Dollar Index rose 0.13% to 95.45, up two of the past three trading days. The dollar strengthened to a one-week high after Treasury Secretary Bessent warned countries and companies that do business with Iran will face U.S. retaliation, with futures higher and yields steady.
Bitcoin hit $80,000, reversing months of subdued valuations as fresh investor interest in the so-called debasement trade brought growing support for the cryptocurrency as a dollar hedge. The cryptocurrency was up over 20% over the past week, crossing above $80,000 as the rally extended.
Sterling rose to a one-week high against the euro, but ING said the pound was likely to turn lower in coming months as expectations for BOE rate rises looked excessive, making sterling's gains unlikely to last. US Treasuries and emerging-market currencies are diverging the most in more than four years as higher US yields fail to fuel the dollar's strength like they once did.
Iran Sanctions & Geopolitics
Treasury Secretary Scott Bessent launched "Operation Economic Outcast" to isolate and squeeze Iran, warning countries and companies that do business with Tehran will face U.S. retaliation. The US unveiled a campaign to cripple Iran's economy, though Bessent acknowledged the effort was more of a warning shot that would begin a period of "quiet diplomacy." The so-called "D-Day" for Iran doesn't live up to Bessent's hype, with US efforts looking more like business as usual than a game-changer.
Iran pledged to defy Trump's economic sanctions, with analysts saying Tehran could intensify the dispute militarily. One Iranian official vowed that "not a single drop of oil" would leave the country. Experts warn that a campaign aimed at avoiding military escalation could instead provoke it, as Iranian leaders vow retaliation across the oil-rich Gulf, leaving Iran with little to lose. Iranians are already queuing for petrol as the US blockade bites, with long lines forming in the capital as officials warn that war and inflation are triggering fuel shortages.
Trump's attempt to strangle Iran's economy depends on China's cooperation, but Beijing threatened to retaliate against the US and signaled it won't back away from its cooperation with Iran after the latest sanctions targeted businesses in China and Hong Kong. China pushed back after Trump tightened the screws on Iran, risking a clash with Beijing as the administration tries to cut off Iran's economic lifelines. China defended its cooperation with Iran and warned against sanctions. The Iran war was supposed to expose China's weakness on oil, but it didn't quite work out that way, making China the unexpected winner.
Bessent's Iran D-Day threat is clouding the outlook for India's rupee and stocks. The Trump administration risks a clash with Beijing as it tries to cut off Iran's economic lifelines without upending a fragile U.S.-China truce. The administration also plans to return diplomats to Middle East embassies, with evacuated foreign service officers potentially heading back as early as this week, suggesting Washington does not anticipate a renewal of full-scale conflict.
Trade War
President Trump vowed to increase tariffs on cars, trucks, auto parts and steel to 50 percent starting Jan. 1, as the countries edged toward a full-blown trade war. Canada fired back in the trade war with up to 50% tariffs on items from aluminum foil to dishwashers to fish, saying the higher levies would help protect workers, producers and manufacturers harmed by new Trump tariffs. Ottawa officials were set to announce their response to the new American levies on Tuesday.
The 50 percent tariffs Trump imposed on Canadian exports will make it impossible for many Canadian companies to continue to sell to the U.S. market, economists say, threatening thousands of jobs. Detailed accounts of the final hours of the negotiations show that, while the United States offered Canada what it said was the best deal of any country, what Canada had to give up in exchange was seen as too much, as trade talks collapsed into an all-out trade war. Trump's Canada tariffs rely on an untested law, invoking a long dormant section of law that has troubled courts in the past.
The U.S.-Canada trade war escalated as Crocs stepped out of the discount bin, with revenue hitting the $1 billion milestone. Trump also threatened a 50% tariff on automobiles and parts from Canada, adding to the escalating trade tensions.
Deals & M&A
SpaceX will spend $100 billion on a new spaceport in Louisiana, its second private launch site after Starbase in South Texas. Apollo Global Management, IFM Investors and KKR & Co. have reached the final round of bidding for a majority stake in Associated British Ports, the UK's biggest port operator. The UAE's Adnoc spent $2.7 billion on a ship-buying spree, ordering two more liquefied natural gas carriers to help expand energy exports.
Kenya Airways said it's weeks away from unveiling a proposal to sell a stake to a strategic investor, almost a decade after the flag carrier first embarked on the plan. Berkshire-backed Japanese insurer Tokio Marine is reviewing several targets including Australia's Suncorp and Canada's Intact Financial for a multibillion-dollar deal. Nat West plots a push into the US market, having secured regulatory approval for a new American office as part of expansion plans.
Dick's Sporting Goods' $2.4 billion deal for Foot Locker backfired, with shares tumbling after the retailer revealed footwear discounts are sapping profits. The company cut its guidance amid increasingly tough conditions in the athletic footwear and apparel markets. Dick's Sporting Goods shares also slid after warning that nervous consumers are cutting spending "due to the geopolitical environment."
First Brands' billion-dollar rescue hit the skids as hedge funds that funded the bankruptcy were left with a "clunker" in what was no ordinary debt-induced collapse. The company was forced into liquidation by a bankruptcy court, with a federal judge in Texas saying the litigation trust plan "was unconfirmable under any circumstances."
Banking & Financials
BNP Paribas secured a regional headquarters license in Saudi Arabia, boosting its presence in the kingdom as ties between Riyadh and Paris deepen. UBS is expanding its push to offer clients leveraged deposits with Middle East lenders to take advantage of higher regional savings rates. HSBC has purchased at least $3 billion of Indian government bonds since July, deploying funds garnered under a special diaspora dollar deposit program.
Bank of Nova Scotia notched a rise in third-quarter earnings, driven by a record result from its global wealth management and global banking businesses. Bank of Montreal aims to launch a share-buyback program after notching improved results, despite being slugged by a charge from the sale of assets. JPMorgan eased its approach on lending against shares to court AI's new wealth, shortening the time horizon for SpaceX workers and investors to borrow against stock holdings.
A Deutsche banker was charged with embezzling €600,000 from wealthy clients, a case that comes as the German lender seeks to expand its wealth management operations. AIB Group is working with Banco Santander and Howden Group on a significant risk transfer as the Irish lender expands the use of the hedging instrument across its loan book.
The SEC has sought information from banks that provided financing to supercharge hedge fund Situational Awareness's AI-centric bets. The SEC subpoenaed Wall Street banks over the fund, which nearly collapsed in July before striking a deal with Citadel. Billionaire Alex Gerko is shutting down his old fund at the center of a recent UK Supreme Court case over levies on historical trading profits.
Sammons Financial Group reiterated to lenders that it has some distance from Guggenheim Partners, after a report focusing on the longstanding ties between the firms hit valuations. The unravelling of Mark Walter continues as the billionaire is selling sports stakes to clean up the balance sheets of the insurance arms of the colossus he built.
IPOs & Fundraising
Oura and Dunkin' parent companies are getting ready to join the IPO bonanza, with investors sizing up the parade of new offerings expected in coming months. Both companies eye offerings as Wall Street's IPO boom builds. The IPO plans are the latest signs of Europe losing out to the US in attracting key listings, despite bourses and governments intensifying their efforts.
Aggreko filed for a US initial public offering, revealing the private equity-backed power equipment rental company turned profitable as revenue increased. Shein's IPO pitch should be more Meta than H&M, with its rivals not just clothes retailers but any business that provides screen-addicted users with a dopamine hit.
Private equity growth funds attracted record first-half inflows as the sector rebounds, with the recovery in fundraising driven by the AI boom and valuations that remain below the 2021 peak. Morgan Stanley and Schroders backed Australia's largest venture capital round, with Blackbird Ventures raising $750 million. China's IPO rush is showing strain as the pace nears the 2023 frenzy.
Ditching SpaceX didn't help you beat the market, according to analysis of the IPO valuation versus S&P 500 performance. Anthropic is expected to tell investors it sees over $30 trillion in potential revenue, likely topping SpaceX's eye-popping potential revenue estimate.
AI & Tech
Nvidia has fallen for seven days, its longest run of losses since 2022, with stock bulls getting punished in the run-up to earnings. AI jitters and geopolitical threats marked the start of a busy week in markets, with chip makers and other tech stocks weighing on major U.S. indexes. A slow-motion collapse in South Korea's Kospi index erased $2.5 trillion in value, burning investors who bet on the AI boom.
South Korea's leveraged ETFs tied to chipmakers saw outflows near $1 billion this month as investor fervor over the AI trade cooled. The VIX curve "bump" shows stock-market anxiety growing by midterms, with traders in equity derivatives markets already positioning for volatility.
The EPA moved to curb public input on air pollution permits for data centers, with states no longer needing to provide public notice or solicit comments under the proposal. A Silicon Valley start-up aims to reverse the backlash against data centers, with Emerald AI, now valued at $1.05 billion, using software to keep power demand at computing facilities from getting out of control.
A Chinese AI lab may test the world's cybersecurity with a model, as Z.ai prepares to release an open-weight system similar to one that went rogue and demonstrated remarkable hacking abilities. Quantum computing is a threat to cybersecurity, with the math behind encryption no match for quantum computers. Irregular, an Israeli start-up that worked with OpenAI, Anthropic and Meta to assess the security of their AI models, made a mistake that sent tests off the rails.
Some executives want human employees to share their Slack notes with AI agent co-workers, as bosses push AI access to workplace messaging. CEOs have a problem with workplace DMs and are pushing to reduce them in favor of group chats that AI can read. We know the risks of AI and need to act, as AI could turn one of the country's worst habits into a national security crisis.
Central Banks
Kevin Warsh's first major speech as chairman of the Federal Reserve has become an unexpected trial of his slimmed-down communications style, with Jackson Hole offering a high-profile slot to rebut his critics. Jackson Hole could further formalise an emerging Fed-Treasury accord, with stablecoins, the theme of this year's symposium, expected to bolster demand for short-term debt on which the Treasury is increasingly reliant.
Hungary's central bank delivered its third consecutive interest rate cut after the inflation rate fell to the lowest level in a decade. A leading ally of Italian Premier Giorgia Meloni endorsed a tax on windfall energy profits as the government prepares to extend measures to cushion the effect of the Iran war.
Emerging Markets
Pakistan said it has asked the US for a $10 billion facility and expects a response from Washington within a couple of months. India approved the transfer of technology for all conventional missile systems developed by its state-run defense research agency to domestic manufacturers. The asset manager that runs India's largest actively managed equity plan cut the minimum investment threshold for its fund that allows Indians to invest overseas.
Avenue Supermarts, a leading Indian supermarket operator, plans to raise up to 10 billion rupees ($105 million) through a domestic bond offering. Cholamandalam Investment and Finance, one of India's biggest shadow lenders, plans to raise as much as 20 billion rupees ($209 million) through the issuance of perpetual bonds. Indian traders are bracing for their first monthly derivatives expiry using auction-based end-of-day stock prices.
Senegal's parliament ordered a probe into total-return-swap deals the country entered last year to raise about €1 billion ($1.2 billion) to meet financing needs. Laopu Gold reported slower revenue and profit growth for the first half, missing analyst estimates as falling bullion prices dented Chinese consumers' appetite for its jewelry. Tsingshan Holding Group is considering as much as tripling output at a Zimbabwe steel plant it started in 2024.
Energy Transition & Infrastructure
Waymo picked Munich for its first EU robotaxi launch by 2027, as Germany seeks to bolster its struggling auto sector. Scientists have come up with a way of measuring the commercial value of nuclear fusion, asking whether it could become economically viable. Fusion start-ups are rejecting the "nuclear" label in a branding push to avoid words associated with conventional nuclear plants and enjoy a lighter US regulatory regime.
The Sizewell C nuclear project suffered a setback after road building was delayed, with Galliford Try replaced as key contractor following disagreement about the cost of work. Extreme weather threatens energy security, from jellyfish swarms to "Super El Niño", with scientists warning that policymakers need to focus more attention on how climate change will impact energy systems.
Chinese wind turbine manufacturers are targeting Europe despite political obstacles, with Ming Yang attempting expansion despite being blocked from offshore wind in the UK. Rooftop solar developer PCG Power plans to launch a trading platform next month to tap into China's growing market for electricity. The US expanded its search for critical-mineral projects for defense gear, seeking investment pitches from domestic producers of metals used in fighter jets, night-vision goggles and tank armor.
The UK backed the Devon tungsten mine in an effort to secure critical mineral supplies, with the National Wealth Fund investing £71 million in the project to produce metal used in aerospace and defence industries. Brazil's first rare earths facility is a key component in US plans to break free from Chinese dominance, reviving an old asbestos town at the heart of the rare earths race. Woodside put "everything on the table" in a review of its Beaumont facility, reflecting a shift in international policy positions and slack demand for lower carbon ammonia.
Shipping & Logistics
Trade disruptions are giving container shipping a temporary reprieve, with disruptions at sea and bottlenecks on land pushing rates up and ensuring the industry remains buoyant. Japan's high frequency trader Dharmacapital moved all its staff to Singapore earlier this month, effectively leaving Tokyo with no such firms operating there.
Sports & Entertainment
The pro sports liquidity escape hatch is a growing trend, but what if you don't have the Lakers? A new study shows that NFL players have a high risk for developing degenerative brain disease, with at least 1 in 4 getting CTE and the actual prevalence possibly much higher. The study underscores the danger of playing, and researchers say reducing the total number of blows to the head is key to minimizing risk. "We never see things that are this dire," a former chief scientist of OSHA said about rates of CTE in former players, raising the question of why OSHA hasn't intervened.
Good Good Golf and Callaway apologized for a "scary" ad after a viral backlash. Jelly Roll celebrated his 300-pound weight loss on "Jimmy Kimmel Live," saying "That means I've lost an entire Donald Trump," while guest hosting Monday's late night show.
Politics & Policy
The Supreme Court is still struggling with whether and when to explain themselves to the public when the court issues temporary, but consequential orders, as Trump "emergencies" return. The justices allowed plans to restrict mail voting to proceed for now, though they said it is not a final determination on the order's legality. Trump has quietly sought control over the Postal Service to transform U.S. elections, an effort that got new attention when the Supreme Court allowed preparations for mail voting curbs to proceed. Nearly 30 percent of voters nationwide use mail ballots, and Trump is seeking greater federal control of mail voting, with some states relying on it the most.
The State Department has begun a review that could affect as many as 200,000 visa holders and asylum applicants, with cancellations potentially occurring in waves. Trump officials proposed charging more than $100,000 for skilled worker visas, after running into legal challenges in a similar attempt last year. Democratic senators asked Homeland Security for details about idled planes after a New York Times story revealed the department spent $464 million on used jets that rarely fly.
Lawmakers pushed Governor Hochul to block ICE from taking over an upstate warehouse, as a state law preventing police from working with federal immigration officials goes into effect. One summer morning, immigration agents swooped in and detained 18 immigrants at a store in Lakewood, N.J., as ICE descended on a town, plunging the community into fear. A judge ordered the US to return a deported man at risk of torture, a Mexican man sent to his home country after assisting federal law enforcement by testifying against drug cartels.
Fringe views in primary campaigns are rattling Florida Jews, with debates over Israel animating many races and what happened in Florida going beyond that. A New York Times/Philadelphia Inquirer/Siena poll found Pennsylvania Republicans now view John Fetterman more favorably than its sitting GOP senator, with Fetterman's popularity with Republicans surging. The same poll found Josh Shapiro leading the Pennsylvania governor's race and having support for a possible presidential bid.
Trump's endorsement track record is on the line in two runoff races in South Carolina and Oklahoma, including the high-profile contest to succeed the late Senator Lindsey Graham. Trump rallied for Darline Graham in her South Carolina Senate run and pressured allies to endorse her, with a super PAC run by his advisers having spent nearly $800,000 on her campaign. Flávio Bolsonaro's push to elect a Senate majority willing to remove Supreme Court justices is running into early obstacles, with opinion polls suggesting the conservative wave may not materialize.
India's summer of youth protests is boiling over, with police firing water cannons at protesters in Bihar while leaders of the "Cockroach" student movement vowed to return to Delhi's streets. NYC's 911 system had an outage and officials kept quiet about it, sparking public safety concerns. A California judge ruled that recalled officials are unlawfully in office in Avenal, with the mayor and three other council members refusing to leave despite a certified vote by residents.
Weather & Climate
A fast-moving Reno wildfire forced thousands to evacuate in Nevada, with the Hawk fire burning more than 15,000 acres since it began on Saturday in the foothills of the Sierra Nevada. Nevada sued the Trump administration over Colorado River cuts, seeking to block plans for significant water use restrictions over the next decade. With air and sea surface temperatures already breaking records, this year's El Niño episode is on track to be the strongest in living memory, as shown in 3 charts.
Australia confirmed its first case of H5N1 in June in migratory seabirds, and the virus has since spread rapidly to mammals, straining government responses. South Korea has stepped up checks of cabbage arriving from China after sellers were found to be using formaldehyde to keep the brassicas fresh, triggering a widespread crackdown by Beijing.
Other Business
Only Fans paid a $700 million dividend to its founder the year before he died, with the online platform a reliable cash machine despite employing fewer than 50 people. The streaming platform used by sex workers has 5 million creator accounts according to latest annual results, with the owner receiving $700 million in dividends before his death this year. Lego is investing in software-enabled bricks and other products to power its growth run, with the world's largest toy group looking to sustain stellar revenue and profit increases.
United Airlines upped its bet on Instagrammable international destinations, adding 10 new international routes like Marseille and Ibiza fueled by robust travel demand from Americans. West Jet flight attendants ratified a new collective agreement following a strike that grounded hundreds of flights in Canada. Hyundai Motor and its union reached a tentative wage deal to end months of on-and-off walkouts that have disrupted production at the Korean automaker.
Target apologized and dropped a Halloween costume criticized as racist, with critics saying the children's costume evoked blackface imagery. A former Forbes editor got $6 million for helping the magazine's partner with a sale, according to a founder of Shook Research. Melrose faces $100 million compensation payouts after a California toxic chemicals scare at its GKN Aerospace facility, though the UK-listed company will not face prosecution.
Aston Martin creditors filed for information ahead of a UK suit against the carmaker, with bondholders owed £1.3 billion seeking discovery in US courts over a contentious £550 million financing deal. US grain farmers are being pummelled as the Iran war triggers a surge in costs, adding to strains in America's heartland months ahead of midterm elections. China could rescue the oil market again if it wanted to, with the People's Republic having ample spare capacity.
The threats to "Swiss Made" are mounting, with US tariffs and the strong franc hitting exporters harder after decades of focusing on adding value, as global protectionism rises. Germany's car parts makers are switching gears as the industry shrinks, with suppliers moving into medical tech, robotics and defence. The little-known French company Chaps Vision is trying to unseat Palantir in Europe, pursuing defence and intelligence contracts as governments look to reduce reliance on US technology.
The UK government is telling citizens to store water and tinned food to prepare for emergencies, stepping up work on a "war book" in a push for resilience against extreme weather and cyber threats. Skipton is trying to show that building societies still matter, with the mutual financial group based in the Yorkshire Dales wanting to emphasise the personal touch. The drip-drip US debt crisis continues, as rising deficits and debt-servicing costs no longer seem to have the power to restore prudence, according to analysis of the fiscal trajectory.
Fire Fly Metals is seeking to raise A$190 million ($136 million) through a sale of new Australian and Canadian shares to develop its Green Bay copper project in Canada. Gold Fields more than doubled its interim dividend and said it would return an additional $500 million to shareholders over the year as earnings jumped on higher prices. The US will allow Mexican cattle shipments into two additional US ports over the next two months, in a move poised to boost beef supplies.
New Zealand's insurance industry is failing to consistently meet the needs of Māori, with affordability barriers and difficulties insuring collectively owned land leaving them less likely to have coverage. Hong Kong's luxury residential rents are expected to climb 5% in 2026 as expatriates relocate to the city, according to JLL. The mayor of New York went on vacation but didn't travel very far, heading "upstate" to Coxsackie where locals were thrilled to spot him.