Last updated: August 26, 2026, 2:44 AM ET
Global Equities
Global equity markets staged a broad advance as a pullback in oil prices offered relief from inflation concerns and bond-market pressures. Asian shares rose, led by chipmakers, while US stocks gained as another drop in crude and tepid economic data quelled inflation worries. The tech-heavy Nasdaq led indexes higher, with the benchmark Treasury yield notching its biggest decline since June. European semiconductor companies were in positive territory following Monday’s selloff, and Siemens Energy was among the notable gainers. The VIX curve showed a “bump” indicating stock-market anxiety growing by the midterms.
In Asia, the Nikkei fell 0.4%, dragged by chip-related stocks ahead of Nvidia’s earnings. South Korea’s leveraged ETFs tied to chipmakers saw outflows near $1 billion this month as investor fervor over the AI trade cooled and regulators stepped up measures to curb demand. 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. China’s IPO rush is showing strain with the pace nearing the 2023 frenzy.
UK stocks looked set to extend their winning streak to seven days, while European markets advanced as oil prices dropped. Australia’s Domino’s Pizza Enterprises shares tumbled the most in six months as the struggling fast-food chain reported a further decline in sales across several markets. Dick’s Sporting Goods shares slid after warning that nervous consumers are cutting spending due to the geopolitical environment, with the company’s $2.4 billion bet on Foot Locker backfiring as footwear discounts sapped profits. Software stocks are facing an earnings gut check after a hot summer rally.
Fixed Income & Central Banks
Treasuries gained as a decline in crude oil eased inflation pressure on Treasury Secretary Scott Bessent, who has been moving to halt a months-long selloff that pushed the longest-dated securities to multi-year highs. The short squeeze in US long bonds showed the “Bessent Put” at work, with Citadel Securities’ Frank Flight reversing his bearish call on long bonds, citing crowded bearish positioning and improving fundamentals. Global bond markets stabilized as investors mulled US buybacks and Iran sanctions, with reports that the Treasury might deploy its nearly $1 trillion general account to finance increased buybacks of long-end securities. The drip-drip US debt crisis persists as rising deficits and debt-servicing costs no longer seem to have the power to restore prudence.
The US Treasury’s bond intervention has put it on a collision course with the Fed, as increased purchases of debt threaten to undermine central bank chief Kevin Warsh’s bid to tame inflation. Legendary hedge-fund investor Stanley Druckenmiller delivered a surprising critique of Bessent with the help of AI, saying he was “kind of proud of using it.” The heat on Bessent grows as his plans to intervene in bond markets draw widespread criticism, including from a prominent former mentor. As one analysis put it, “governments defending prices against fundamentals always lose.”
Jackson Hole offers Warsh a high-profile slot to rebut his critics, with his first major speech as Fed chairman becoming an unexpected trial of his slimmed-down communications style. The symposium could further formalise an emerging Fed-Treasury accord, with stablecoins — the theme of this year’s gathering — expected to bolster demand for short-term debt on which the Treasury is increasingly reliant. China’s banks have started pricing bonds off the overnight funding cost, an indication that it’s increasingly the benchmark for the financial system. Treasury Inflation-Protected Securities are on sale at a 3% real yield, according to one prominent investor.
Commodities & Energy
Oil fell for a third day as Iran and Oman discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz, with the US tightening the economic squeeze on Iran raising expectations the measures could bring Tehran to the negotiating table. Oil futures posted back-to-back losses as the US tightens its campaign, while Iraq’s oil loadings from its Persian Gulf export installations jumped with seven tankers collecting cargoes, the latest sign that regional flows might be climbing. Iranian tankers have gathered off the Sri Lankan coast, cut off from home ports by the US blockade. Asian shares rose as the oil drop eased inflation woes.
Copper extended gains after closing at a record high on Tuesday, as short-term supplies continued to look tight despite an easing of last week’s severe market squeeze. Gold consolidated after a five-day rally, with investors turning their focus to the Federal Reserve’s interest-rate path ahead of Jackson Hole. Comex gold settled 0.1% lower at $4,638.10, snapping a four-session winning streak. European LNG prices surged to their highest level since 2023, as the continent’s gas inventories were already low before the Iran war disrupted shipments. Gold slipped in Asian trade as markets awaited Fed Chairman comments at Jackson Hole.
Ukraine’s double-barreled drone strikes have snarled Russian oil flows, with Black Sea strikes hampering flows from Novorossiysk and crude processing tumbling to a four-month low. Indian refiners are scaling back buying of Russian crude from elevated levels as Ukrainian attacks hurt flows from the nation’s top supplier. Russia is discussing extending its ban on diesel exports and weighing a suspension of the floating export duty on wheat, barley and corn through the end of 2026 as exporters face mounting logistics problems. US natural gas futures fell alongside crude and European gas futures as a US plan to increase economic pressure on Iran seemed less likely to affect physical supply than investors expected.
Currencies & Rates
The WSJ Dollar Index fell 0.08% to 95.38, down two of the past three trading days, as dollar debasement frees emerging-market currencies from Treasuries’ weight. US Treasuries and EM 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. The Singapore dollar was steady against its US counterpart amid reduced geopolitical risks in the Middle East. Australia’s second-largest pension has built its biggest overweight position in the Japanese yen in years, betting that markets are underpricing Bank of Japan interest rate hikes. Dollar debasement is freeing EM currencies from the weight of Treasuries.
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. Hungary’s central bank delivered its third consecutive interest rate cut after the inflation rate fell to the lowest level in a decade. Bitcoin eased after rising above $80,000 as the cryptocurrency’s rally stalled in the absence of new positive catalysts, with the surge past $80k attributed to Treasury buyback news.
Deals, IPOs & Corporate Finance
SoftBank Group is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in OpenAI. The Japanese conglomerate’s move comes as Nvidia’s $200 billion “balance sheet-as-a-service” model is analyzed, with the chipmaker’s vendor finance operations drawing scrutiny. Nvidia has fallen for seven days, its longest run of losses since 2022, and holders want a map, not just a beat, according to Franklin Templeton’s Sara Araghi, who said the company needs to provide concrete detail on how it plans to deploy capital. Nvidia stock bulls have been punished in the run-up to earnings.
Options turnover on India’s biggest stock exchange fell to the lowest in a year on monthly expiry day, reflecting the impact of stricter trading rules and the introduction of the closing-auction session ahead of the NSE’s IPO. Purple Style Labs, the operator of Pernia’s Pop-Up Shop, will sell shares in an IPO in India next week, seeking to tap demand for elaborate weddings and occasion wear. Shein is preparing to list in Hong Kong at a quarter of its peak valuation, with the fast-fashion retailer’s IPO stall marking a dramatic fall from its $100 billion valuation. Oura and Aggreko IPO plans are the latest signs of Europe losing out to the US in attracting key listings, while Oura and Dunkin’ are eyeing offerings as Wall Street’s IPO boom builds. The Indian government has emerged as a force in the country’s equity fundraising boom.
Apollo Global Management, IFM Investors and KKR have reached the final round of bidding for a majority stake in Associated British Ports, the UK’s biggest port operator. Singapore-based insurer Great Eastern Holdings is backing Granite Asia’s inaugural private credit fund, the latest example of an insurance company putting money into private credit. The UAE’s Adnoc has spent $2.7 billion on a ship-buying spree, ordering two more LNG carriers to help expand energy exports. Echo Star Corp. allegedly engaged in $1.5 billion of “unusual transactions” with its bankrupt subsidiary, Hughes Satellite Systems Corp., according to the US Trustee, who urged the court to appoint an examiner. Binance has hired two senior compliance executives from Crypto.com as the exchange bolsters its ranks.
Avenue Supermarts, a leading Indian supermarket operator, plans to raise up to 10 billion rupees through a domestic bond offering, its largest ever. 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. Tungsten West shares soared after securing an investment of up to £71 million from the UK government for the restart of a historic tin and tungsten mine in Devon, a project aimed at securing critical mineral supplies. Vistry was boosted by a £350 million UK government contract to build 3,028 homes over 10 years, sending shares 18% higher. Berkshire-backed Tokio Marine is plotting a multibillion-dollar deal, reviewing several targets including Australia’s Suncorp and Canada’s Intact Financial.
Credit & Structured Finance
Insurers are piling into deals allowing banks to offload default risk, with the market for synthetic risk transfers booming in recent years and insurers now offering banks unfunded structures. 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. 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. Mexico bonds are trading like junk after a $130 billion bailout of Pemex, with the country finding itself teetering on the cusp of losing its investment-grade rating. Pemex rescues have dragged Mexico’s bonds to “junk category” territory.
Mark Walter’s troubles are disrupting the insurance world’s hottest trade, with investors questioning a $4.1 billion takeover of Brighthouse Financial because of some parallels to Walter. Guggenheim Investments is telling lenders that affiliates may look to buy portions of a loan issued by its financing entity after the debt was hard hit. Aston Martin is set to leave the FTSE, a move that would cement its status as a small-cap stock and highlight its faltering turnaround, while bondholders owed £1.3 billion have filed for discovery in the US courts over a contentious £550 million financing deal. The British Business Bank’s small business loans hit £4 billion, with executive pay jumping at the state-owned bank amid questions over its underwriting of commercial banks’ lending. Senegal’s parliament ordered a probe into €1 billion total return swaps.
Wall Street keeps minting box ETFs despite Treasury scrutiny, with the strategy that delivers Treasury bill-like returns with lower taxes getting a fresh boost as firms bet the approach will survive rising scrutiny. Nuveen raised $1 billion to finance improvements for commercial buildings, having provided $465 million in C-PACE financing to convert a 600,000-square-foot property from office space to residential use last year. Institutional investors are backing Blackstone and KKR funds for wealthy individuals, a shift by private equity’s traditional backers that could threaten the traditional 10-year fund model. First Brands’ billion-dollar rescue hit the skids, leaving hedge funds that funded the bankruptcy with a “clunker.”
Geopolitics & Trade
Canada fired back in the trade war against Trump 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. The president invoked a long dormant section of law to hit one of America’s closest allies, a move that has troubled courts in the past. In Canada and at home, deference to Trump is turning to defiance on tariffs and other issues, with other leaders and institutions pushing back more vigorously than at the beginning of his second term. The US-Canada cosmetic tariffs threaten the $10 beauty impulse buy, with the trade war reaching into everyday consumer products. Congress needs to stop Trump’s tariff madness, according to one opinion writer.
The Trump administration’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. However, the campaign doesn’t live up to Bessent’s hype, looking more like business as usual than a game-changer. China pushed back after Trump tightened the screws on Iran, with Beijing threatening to retaliate against the US and signaling it won’t back away from its cooperation with Tehran. Iran may have little to lose as the US tries to squeeze its economy, with experts warning that a campaign aimed at avoiding military escalation could instead provoke it. The Trump administration sent a Saudi nuclear deal to Congress for review, with the prospect that the kingdom could enrich uranium drawing opposition from Democrats and reviving concerns about nuclear proliferation. What’s more than “maximum”? Trump faces limits on Iran sanctions.
South Korea is challenging China on Arctic trade routes, with Seoul hoping a polar sea highway will reduce reliance on chokepoints such as Hormuz and revive the ailing city of Busan. Germany’s defence push is drawing global groups to set up shop in the country, with companies from Norway, Finland and South Korea establishing German offices to tap higher spending. Four Russian bankers made millions from EU sanctions, with traders at Gazprombank Luxembourg cashing in as Moscow reeled from western blowback over the Ukraine war. The US audit regulator scrapped its investor advocate role as the Trump-era revamp accelerates, with the Public Company Accounting Oversight Board closing the office set up under the Biden administration. Trade disruptions are giving container shipping a temporary reprieve.
Earnings & Corporate News
Intuit forecasts slower growth, 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 and takes steps to win more Turbo Tax users. 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. Bank of Montreal plans to buy back shares after a strong quarter, benefiting from double-digit revenue growth and an improved credit performance in its fiscal third quarter. Scotiabank’s earnings were lifted by a record result in wealth management, with the Bank of Nova Scotia notching a rise in third-quarter earnings driven by strong results across its business lines. Melrose faces $100 million compensation payouts after a California toxic chemicals scare.
Crocs stepped out of the discount bin, cutting discounts as revenue hit the $1 billion milestone. 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. Software stocks are getting an earnings gut check after a hot summer rally, with investors betting that the struggling stocks have found their footing again after a strong performance over the past month. Intuit’s slower growth forecast and Zoom’s shortfall highlight the mixed picture in tech earnings. United Airlines is upping its bet on Instagrammable international destinations.
XPeng is betting robots will be more profitable than its cars, with co-president Brian Gu thinking its margins will eventually eclipse those of the core electric-vehicle business as Iron mass production starts. 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. China’s YMTC aims to overtake Samsung and SK Hynix in the flash memory race, setting out Nand production ambitions in investor meetings for a $5 billion Shanghai IPO. Chinese steelmakers face a profit squeeze through the end of the year as elevated raw material costs compound weakness in demand. Lego is investing in software-enabled bricks and other products to power its growth run.
Regulation & Legal
Deloitte will pay the US administration $21.5 million to settle a “discriminatory” practices probe, with the firm one of several professional services businesses targeted by the American Alliance for Equal Rights. The Trump administration has been probing major US companies under a novel use of a federal law meant to police federal contractors. The Interpath chief was fined over confidentiality breaches before the firm’s sale by KPMG, with Mark Raddan, chief executive of the restructuring firm sold to private equity group HIG Capital, facing penalties. 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. Xi’s unprecedented tax clawback is hammering Chinese listed companies.
Forbes and Shook Research suspended rankings amid an investigation of a $6 million payment, with the magazine reviewing a payment from the founder of Shook Research to its former top editor and canceling a summit in Las Vegas scheduled for October. The former Forbes editor got $6 million for helping the magazine’s partner with a sale, with Shook Research’s founder saying Randall Lane offered guidance during the sale to a private-equity firm. The PCAOB scrapped its investor advocate role as the Trump-era revamp accelerates. Reform UK pledged to cut data rules and curb liabilities for non-executives, with Nigel Farage’s party sharpening its pitch to business by promising to scrap the General Data Protection Regulation. Bolsonaro’s strategy to purge the top court faces hurdles in Brazil.
Infrastructure & Technology
SpaceX will spend $100 billion on a spaceport in Louisiana, its second private launch site after Starbase in South Texas, with the rocket company’s commitment set to transform an area known for duck hunting. The SpaceX orbital data centre bet tests physics and finance, with Elon Musk’s company facing formidable challenges in launching millions of satellites into orbit to power AI. The multiplying risks of financing data centres are growing amid the AI boom, with Wall Street players extending themselves to underwrite this colossal new asset class while looking to limit exposure. The risks of investing $7 trillion in AI data centres are significant, with the E.P.A. moving to curb public input on air pollution permits for data centers and other projects. Locals are divided over SpaceX rockets coming to coastal Louisiana.
Emerald AI, now valued at $1.05 billion, aims to reverse the backlash against data centers, using software to keep power demand at the computing facilities from getting out of control. Waymo picked Munich for its first EU robotaxi launch, a move by the Alphabet-owned group as Germany seeks to bolster its struggling auto sector, while the launch date for London robotaxis slips amid TfL uncertainty. The Sizewell C nuclear project suffered a setback after road building was delayed, with Galliford Try replaced as key contractor following a disagreement about the cost of work. Could nuclear fusion become economically viable? Some scientists have come up with a way of measuring its commercial value. Quantum computing is a threat to cybersecurity, as the math behind encryption will be no match for quantum computers.
Politics & Policy
President Trump went all in for Senator Lindsey Graham in a primary runoff in South Carolina, and it worked, preserving his undefeated streak in Republican Senate primaries this year. Everton Blair Jr. won the race to fill David Scott’s House seat in Georgia, serving until January in the seat long held by Mr. Scott, who died in April. The Supreme Court on Monday allowed the Trump administration to continue with plans to curtail mail-in voting, but the fast-moving, high-stakes legal fight continues, with nearly 30 percent of voters nationwide using mail ballots. Democrats scored a victory in a campaign finance court case, with an appeals court ruling that Republicans are not entitled to lower ad rates despite a Supreme Court decision allowing party committees to coordinate with candidates. Fringe views in primary campaigns are rattling Florida Jews.
The Trump administration will return diplomats to Middle East embassies, with evacuated foreign service officers potentially heading back to their posts as early as this week, suggesting Washington does not anticipate a renewal of full-scale conflict. The administration also plans to target visas of up to 200,000 foreign citizens applying for asylum, with the State Department beginning its review and cancellations potentially occurring in waves. Democratic senators asked Homeland Security for details about idled planes, following a New York Times story revealing that the department had spent $464 million on used jets that rarely fly. Prime Minister Sanae Takaichi said Japan would defend the International Criminal Court as it comes under increasing pressure from the US, most recently through the sanctioning of its Japanese president. John Fetterman’s popularity with Republicans surges, a poll finds.
People & Culture
Dolly Parton, the country music superstar whose songs spoke to millions, died at, rising from rural poverty to become a top-selling singer, songwriter and entrepreneur. Known for her outsize persona, appearance and talent, she kept her home state of Tennessee at the forefront of her music and work, with residents mourning her death across the state. Her bedazzled, bewigged, and bodacious style subverted expectations, as a wild mountain rose who used her clothes and her body to challenge convention. Parton gave hopeful expression to songs she wrote about the hard times and hard-won triumphs of her life, with 15 essential songs capturing her career from poverty to chart-topping performer. What Dolly Parton told me reflects a life of stories and grace.
Matt Dalton, the fixed-income expert who led Belle Haven Investments, died at, having founded the firm in 2002 out of a former broker-dealer business. The bankers cashing in on Italy’s wealth boom are in a bidding war to serve a new generation of wealthy Italians created by private equity. Granola’s Chris Pedregal says people are starting to question what’s actually useful in AI, with the co-founder of the London-based note-taking app discussing how artificial intelligence is percolating through the workplace and the privacy implications of always-on AI listeners. The conflict resolution expert Priya Parker argues that we need to fight smarter and more often if we want to get along and get ahead. The “Sheriff of Wall Street” Eliot Spitzer exposed bankers’ lies.
Other News
A worker died after an accident with a plane at Montreal airport, with the Transportation Safety Board of Canada saying the episode involved an Airbus A350 operated by French Bee. Two measles deaths were reported in Pennsylvania, the first in the United States in 2026, which one doctor called “extremely rare in the modern era.” A new study shows that at least one in four NFL players, and likely a much higher percentage, had the brain disease CTE when they died, raising questions about why OSHA hasn’t intervened. Target apologized and dropped a Halloween costume criticized as racist, saying “We know we got this wrong, and we are deeply sorry.” The Log Cabin Republicans, dedicated to gay causes, ended support for trans causes, saying that trans rights advocates focus too much on minors. India’s summer of youth protests is boiling over.