Last updated: August 25, 2026, 8:42 PM ET
Global Equities
U.S. stocks climbed as another drop in oil prices and tepid economic data quelled inflation concerns, with technology shares leading major indexes higher. The benchmark Treasury yield notched its biggest decline since June as tech stocks rose. Futures pointed to further gains with yields steady after Treasury Secretary Scott Bessent's Iran speech, as oil pulled back and the dollar strengthened to a one-week high. European stocks advanced as a pullback in crude offered relief from inflation concerns, with Siemens Energy leading gains. European semiconductor shares also edged higher following Monday's selloff in the sector.
Asian stocks were set to advance as falling oil prices eased inflation concerns and pushed bond yields lower, while traders awaited Nvidia Corp.'s earnings for fresh clues on the artificial intelligence outlook, according to a markets wrap. UK stocks extended their gains in the best winning streak since May, with the FTSE 100 buoyed by falling energy prices. A slow-motion collapse in South Korea's Kospi index erased $2.5 trillion in value, burning investors who bet on the AI boom, turning the world's craziest stock market into a fright ride. Korean leveraged ETFs tied to chipmakers saw outflows near $1 billion this month as investor fervor cooled and regulators stepped up measures to curb demand.
Infrastructure stocks rallied on defense spending pushes and AI hedging, according to Bloomberg's EMEA Equities Squawk, with the sector attracting fresh inflows. 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 test whether the latest rally has staying power. Nvidia has fallen for seven days, its longest run of losses since 2022, as stock bulls get punished in the run-up to earnings. Franklin Templeton's Sara Araghi said Nvidia needs to go beyond a headline earnings beat and provide investors with concrete detail on how it plans to deploy capital and sustain its spending plans. The VIX curve shows a "bump" indicating stock-market anxiety growing by the midterms, with traders in equity derivatives markets already positioning for election volatility.
Fixed Income & Currencies
Treasuries gained as a decline in crude oil eased inflation concerns and the pressure on Treasury Secretary Scott Bessent, who has been moving to halt a months-long selloff that pushed the longest-dated securities higher. Global bond markets stabilized as investors mulled U.S. buybacks and Iran sanctions, with reports emerging that the Treasury might deploy its nearly $1 trillion general account to finance increased buybacks of long-end securities. A short squeeze in U.S. long bonds shows the "Bessent Put" at work, as key market metrics suggest the Treasury Secretary's surprise plan to tamp down borrowing costs by expanding bond buybacks is gaining traction. However, Stanley Druckenmiller, the billionaire investor who mentored Bessent in his early career as a hedge fund trader, suggested his former pupil is making a mistake by wading into bond markets. The legendary investor delivered his critique with the help of AI, saying he was "kind of proud of using it" to compose his remarks. "Governments defending prices against fundamentals always lose," as the Financial Times put it in its assessment of Bessent's bond-buyback plan. The heat on Treasury Secretary Scott Bessent grows as his plans to intervene in bond markets draw widespread criticism, including from a prominent former mentor.
The problem with buying the dip in bonds is that Treasury buybacks signal bond-market distress, according to the Financial Times. America's spiraling debt crisis, now past $40 trillion, won't be solved by short-term Treasury fixes and reliance on growth — real reform is needed, according to a Wall Street Journal opinion piece. The drip-drip U.S. debt crisis persists as rising deficits and debt-servicing costs no longer seem to have the power to restore prudence. Treasury Inflation-Protected Securities are on sale, with real yields near 3%, prompting one Wall Street Journal columnist to buy more TIPS bonds. 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. U.S. Treasuries and emerging-market currencies are diverging the most in more than four years as higher U.S. yields fail to fuel the dollar's strength like they once did, with dollar debasement freeing EM currencies from Treasuries' weight. 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 extended its rally, crossing above $80,000 and up over 20% over the past week, as oil retreated.
Gold futures were broadly stable at $4,696.40 a troy ounce after hitting their highest level since mid-May on Monday, with the metal eyeing a $5,000 target. 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. 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. Kevin Warsh's first major speech as chairman of the Federal Reserve has become an unexpected trial of his slimmed-down communications style, with the Jackson Hole event offering a high-profile slot to rebut his critics. Hungary's central bank delivered its third consecutive interest rate cut after the inflation rate fell to the lowest level in a decade.
Energy & Commodities
Oil extended declines as Iran and Oman discussed an "interim framework" aimed at resuming shipping through the Strait of Hormuz. Oil prices extended losses, falling more than 2.5% as investors anticipate lower supply risks from fresh U.S. sanctions than from military escalation in the Middle East, despite the new measures on Iran. U.S. natural gas futures fell alongside crude and European gas futures as a U.S. plan to increase economic pressure on Iran seemed less likely to affect physical supply than investors expected. European natural-gas prices traded at their highest in more than three years as supply constraints and low storage levels continue to worry investors, with TTF gas holding above 68 euros. European LNG prices surged to the highest level since 2023 as the continent's gas inventories were already low before the Iran war disrupted shipments.
The U.S. "Economic D-Day" targets more than just Iranian oil, threatening sanctions for any country or entity that engages with Iran's gold, digital assets, aviation, shipping and tech industries. But the campaign doesn't live up to Bessent's hype, as U.S. efforts to isolate Iran look more like business as usual than a game-changer. What's more than "maximum"? Trump faces limits on Iran sanctions, as decades of sanctions have done little to change the country's behavior. Iran may have little to lose as the U.S. tries to squeeze its economy, with experts warning that a campaign aimed at avoiding military escalation could instead provoke it, as Iranian leaders vow retaliation across the oil-rich Gulf. Iranian tankers have gathered off the Sri Lankan coast, cut off from home ports by the U.S. blockade, seeking shelter close to territorial waters. Iranians are queueing for petrol as the U.S. blockade bites, with long lines forming in the capital as officials warn that war and inflation are triggering fuel shortages.
Ukraine's double-barreled drone strikes have snarled Russian oil flows, with Black Sea strikes hampering 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 after Ukrainian attacks disrupted shipments. Satellite imagery shows a surge in Iraq's Persian Gulf oil loadings, with seven tankers collecting the nation's cargoes on Monday, the latest sign that regional flows might be climbing. China could rescue the oil market again — if it wanted to — as the People's Republic has ample spare capacity. China is the Iran war's unexpected winner, as the conflict was supposed to expose China's weakness on oil, but it didn't quite work out that way. U.S. grain farmers are pummelled as the Iran war triggers a surge in costs, adding to strains in America's heartland months ahead of midterm elections.
The UAE's Adnoc spent $2.7 billion on a ship-buying spree, ordering two more LNG carriers to help expand energy exports in the region. 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, an expansion that could add to pressure on South Africa's struggling steel industry. Extreme weather threatens energy security — from jellyfish swarms to "Super El Niño" — as policymakers, businesses and media need to focus more attention on how climate change will impact energy systems, warn scientists. Could nuclear fusion become economically viable? Some scientists have come up with a way of measuring its commercial value.
Deals, M&A & Corporate News
SpaceX committed $100 billion to a Louisiana space base, with Elon Musk's rocket conglomerate planning its second launch complex to support more Starship launches. The launch site and capital investment are primed to transform an area known for duck hunting, though locals are divided. It would be the rocket company's second private launch site after Starbase, its headquarters in South Texas. Ditching SpaceX didn't help you beat the market, as the company's potential IPO valuation versus the S&P 500's performance shows. Anthropic thinks its potential revenue is greater than SpaceX's, with the AI startup expected to tell investors it sees over $30 trillion in potential revenue. 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 and may do the same for Anthropic.
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. Berkshire-backed Japanese insurer Tokio Marine is plotting a multibillion-dollar deal, reviewing several targets including Australia's Suncorp and Canada's Intact Financial. Braskem's announcement of an $11 billion debt restructuring staved off an immediate crisis that would have pushed it into bankruptcy protection, but the parties remain far apart on key issues, putting the spotlight on Petrobras. Echo Star allegedly engaged in $1.5 billion of "unusual transactions" with its bankrupt subsidiary Hughes Satellite Systems, according to the U.S. Trustee, who urged the court to appoint an investigator. Guggenheim Investments is telling lenders that affiliates may look to buy portions of a loan issued by its financing entity after the debt was hit. The unravelling of Mark Walter continues as the billionaire sells sports stakes to clean up the balance sheets of the insurance arms of the colossus he built.
Deloitte will pay $21.5 million to end a DOJ fraud investigation over DEI policies, as the Trump administration probed major U.S. companies under a novel use of a federal law meant to police federal contractors. Only Fans paid a $700 million dividend to its founder the year before he died, as the online platform was a reliable cash machine despite employing fewer than 50 people. The streaming platform used by sex workers has 5 million creator accounts according to its latest annual results. Intuit forecasts slower growth and is taking steps to win more Turbo Tax users, expecting revenue to increase 9% to 10% for fiscal 2027, slowing from 14% this year, as it recorded a lower profit in its latest quarter. Zoom Communications revenue rose on enterprise growth, with the video conferencing company bumping up its guidance for the year, though its earnings guidance for the current quarter came in short of Wall Street's forecast.
Dick's Sporting Goods shares tumbled after the retailer revealed footwear discounts are sapping profits, with the chairman defending a $2.4 billion deal for the sneaker chain. The company cut its operating income outlook, citing increasingly tough conditions in the athletic footwear and apparel markets, after lowering its guidance. Dick's shares slid after telling analysts that shoppers are cautious "due to the geopolitical environment," as the Foot Locker owner plunged. Crocs stepped out of the discount bin, cutting discounts as revenue hit a $1 billion milestone. United Airlines upped its bet on Instagrammable international destinations, with robust travel demand from Americans helping fuel new routes like Marseille and Ibiza. Hyundai Motor reached a tentative wage deal with its union, ending months of on-and-off walkouts that have disrupted production at the Korean automaker. Lego is investing in software-enabled bricks and other products to power its growth run, as the world's largest toy group looks to sustain stellar revenue and profit increases.
Banking & Financial Services
Bank of Nova Scotia notched a rise in third-quarter earnings, driven by strong results that included a record result from its global wealth management and banking divisions. 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. Nat West is plotting a push into the U.S. market, having secured regulatory approval for a new American office as part of its expansion plans. BNP Paribas has 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 a large pool of funds garnered under a special diaspora dollar deposit program. 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. A Deutsche banker was charged with embezzling €600,000 from wealthy clients, a case that comes as the German lender is seeking to expand its wealth management operations. Billionaire Alex Gerko is shutting down the investment partnership at the center of a recent UK Supreme Court case, drawing to a close the long-running dispute over levies on historical trading profits. Binance has hired two senior compliance executives from Crypto.com as the exchange bolsters ranks in that department after a number of staff departures and ongoing regulatory scrutiny. The SEC has sought information from banks that provided financing to supercharge the hedge fund Situational Awareness's AI-centric bets, probing the near-collapse. Private equity growth funds attracted record first-half inflows as the sector rebounds, with the recovery in fundraising being driven by the AI boom and some valuations that remain below 2021 peak. Wall Street keeps minting box ETFs despite Treasury scrutiny, as firms bet the approach will survive rising scrutiny from the U.S. Treasury. Nuveen raised $1 billion to finance improvements for commercial buildings, having provided $465 million in so-called C-PACE financing last year to convert a 600,000-square-foot property from office space to residential use.
Emerging Markets
China pushes back after Trump tightens the screws on Iran, as the Trump administration risks a clash with Beijing while trying to cut off Iran's economic lifelines without upending a fragile U.S.-China truce. Beijing threatened to retaliate against the U.S. and signaled it won't back away from its cooperation with Iran after the latest sanctions targeted businesses in China and Hong Kong. Trump's attempt to strangle Iran's economy depends on China's cooperation, as the U.S. has spent 20 years promising "crippling sanctions" on Iran, but the latest effort comes with a reverse twist after military action failed to accomplish Trump's goals. Xi's unprecedented tax clawback is hammering Chinese listed companies, with Heilongjiang Agriculture Co. — which never once reported a first-half loss in more than two decades as a public company — seeing that run end this year. China's IPO rush is showing strain with the pace nearing the 2023 frenzy, as the high-powered market for initial public offerings shows signs that its breakneck pace could be difficult to sustain. 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. Hong Kong's 2026 luxury rents are set to rise 5% on an expat wave, with expatriates relocating to the city fueling demand in the luxury residential market. China's renewable energy overhaul is spurring a push into power trading, with rooftop solar developer PCG Power planning to launch a trading platform next month to tap into China's growing market for electricity. Chinese wind turbine manufacturers are targeting Europe despite political obstacles, with Ming Yang attempting expansion despite being blocked from offshore wind in the UK and facing resistance in the EU. Record short bets hit China's AI model duo on fierce competition, with bearish bets against shares of Z.AI Co. and Mini Max Group soaring to records ahead of their earnings reports, highlighting growing investor worry over China's heated AI rivalry. A Chinese AI lab may test the world's cybersecurity with a model, as Z.ai will release an open-weight AI model to everyone this week after an unreleased OpenAI model went rogue and demonstrated remarkable hacking abilities.
Mexico bonds trade like junk after a $130 billion bailout of Pemex, with the country finding itself teetering on the cusp of losing its investment-grade status. Pemex rescues have dragged Mexico's bonds to "junk category," according to a Bloomberg report in Spanish. 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. Northam Platinum Holdings jumped after disclosing that it's received an unsolicited approach from a "major producer" of platinum-group metals in South Africa. 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. Pakistan said it has asked the U.S. for a $10 billion facility and expects a response from Washington within a couple of months, as it seeks to capitalize on improved ties with the Trump administration. 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. India approved the transfer of technology for all conventional missile systems developed by its state-run defense research agency to domestic manufacturers, allowing them to produce the weapons.