Last updated: August 26, 2026, 8:43 AM ET
Equities
US equities slipped as traders held back from taking risk ahead of Nvidia Corp.’s earnings, a bellwether for the artificial-intelligence trade. The Nasdaq composite led indexes higher earlier, with tech stocks gaining as the benchmark Treasury yield notched its biggest decline since June. European indexes largely rose at the open, as lower oil prices buoyed sentiment, though tech stocks fell on the continent as well. US stocks rose later as another drop in oil prices and tepid economic data quelled inflation concerns, with the effects of Treasury Secretary Scott Bessent’s “D-Day” sanctions speech looking contained. The FTSE 100 eyed a seven-day winning streak as oil’s drop buoyed European bonds.
Investors are eagerly anticipating Nvidia’s earnings Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to AI in general. 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 — holders want a map, not just a beat. The $1.5 trillion question Nvidia’s earnings can’t answer is whether AI revenue will ever close the gap with the massive capital expenditures, a concern highlighted by the WSJ Markets desk. Meanwhile, Nvidia’s $200bn “balance sheet-as-a-service” model — where the chipmaker effectively provides vendor finance to customers — is drawing scrutiny, as detailed by the Financial Times. Wall Street is also watching Microsoft, which is leaving investors flying blind on its AI businesses, from capex to its flagship cloud platform, according to the WSJ Markets. The AI investment outlook will be a key barometer for the entire sector, according to Bloomberg.
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 Foot Locker. The company warned that shoppers are cautious “due to the geopolitical environment,” and the stock plunged on the consumer spending warning. The sneaker bet backfired, with shares sliding most since February at Domino’s Pizza Enterprises as the struggling fast-food chain reported a further decline in sales across several markets. 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. The VIX curve’s “bump” shows stock-market anxiety growing by midterms, with traders in equity derivatives markets already positioning for volatility, according to Bloomberg.
Fixed Income & Rates
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 to multi-year highs. Treasuries had earlier edged lower, marginally underperforming peers as investors awaited the Federal Reserve’s preferred inflation gauge for clues on whether policymakers will need to raise interest rates. The WSJ Dollar Index declined 0.1% — down two of the past three trading days — as trade tensions and PBOC policy tempered yuan gains. The US dollar traded marginally higher against a basket of currencies as markets awaited the July PCE data, with the dollar edging higher ahead of the release.
Treasury Secretary Scott Bessent’s surprise plan to tamp down US borrowing costs by expanding bond buybacks may have sparked fierce debate about its ultimate effectiveness, but key market metrics suggest a “Bessent Bounce” is starting to emerge in long bond markets. Morgan Stanley Investment Management’s Vishal Khanduja, a top-performing fixed-income investor, is scaling back bets against long-term US bonds, saying Bessent is prepared to act — the long-bond bets are being cut. Citadel Securities’ Frank Flight, who just last month warned of a “cruel summer” for US bond investors, now sees the balance of risks tilted toward a rally, citing crowded bearish positioning — a reversal of his bearish call. The “Bessent Put” might actually be working for the bond market, with early signs suggesting the Treasury Secretary’s surprise moves are making an impact, according to Bloomberg. The Treasury’s moves have put it on a collision course with the Fed, according to the FT.
Bessent’s bond intervention puts the US Treasury on a collision course with the Federal Reserve, as increased purchases of debt threaten to undermine central bank chief Kevin Warsh’s bid to tame inflation. The FT Markets desk reports that the Treasury’s buyback expansion risks clashing with the Fed’s inflation fight. The heat on Bessent is growing, with his plans to intervene in bond markets drawing widespread criticism, including from a prominent former mentor, Stanley Druckenmiller, who delivered his critique with the help of AI — the legendary hedge-fund investor said he was “kind of proud of using it.” The Treasury secretary is confronting the limits of his ability to reshape the economy ahead of midterm elections, facing a credibility test in his quest to tame markets. The drip-drip US debt crisis — rising deficits and debt-servicing costs — no longer seems to have the power to restore prudence, as the FT Markets notes. An opinion piece in the WSJ argues that 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. The bond market is bracing for the fallout as Trump wages war against his own economy, according to the FT.
Kevin M. Warsh is scheduled to deliver his first address at the Federal Reserve’s annual conference in Jackson Hole, with US government bond markets on edge and inflation risks resurfacing. The “honeymoon’s over” for Warsh as the Fed weighs raising rates, with the NYT reporting he is under pressure. Gold consolidated after a five-day rally, with investors turning their focus to the Fed’s interest-rate path ahead of the annual Jackson Hole gathering. Comex gold settled 0.1% lower, snapping a four-session winning streak, at $4,638.10, though some traders are eyeing a $5,000 target. Gold declined in Asian trade as markets appear to be waiting for Warsh to clarify his views on when the central bank is likely to react to inflation when he speaks at the annual Jackson Hole symposium, with gold slipping ahead of his comments. The gold rally has been driven by traders focusing on the Fed rate path, with gold holding a five-day gain ahead of the gathering.
Energy & Commodities
Oil prices fell for a third straight day after Iran and Oman discussed establishing a temporary shipping route to temporarily reopen the Strait of Hormuz, with the WSJ reporting the diplomatic progress. Brent crude retreated to $85 as investors parsed PCE inflation data and awaited Nvidia earnings, with oil extending falls and Nasdaq futures lower. Oil prices held below $90 a barrel as a flurry of positive headlines around US-Iran peace talks soothed oil traders, with oil falling on signs of potential Hormuz reopening. Oil futures posted back-to-back losses as the US tightens the economic squeeze on Iran, raising expectations the measures could bring Iran to the negotiating table, with futures falling further on hopes for Hormuz. Oil fell for a third day as Iran and Oman discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz, according to Bloomberg’s oil market news. Oil loadings from Iraq’s export installations in the Persian Gulf jumped on Monday with seven tankers collecting the nation’s cargoes, the latest sign that regional flows might be climbing, as a satellite image showed a surge in loadings.
Soaring diesel prices are helping oil companies and hurting consumers, as the cost of the fuel — used in farm machinery, trucks and other heavy equipment — has surged because of the war in Iran and Ukrainian attacks on Russian refineries. The NYT reports that the diesel price surge is a double-edged sword. Russia is discussing extending its ban on diesel exports, as Ukraine continues to strike the nation’s refineries at a record pace, with Moscow mulling an extension. Ukraine’s double-barreled drone strikes are snaring Russian oil flows, with Black Sea strikes hampering oil flows from Novorossiysk while crude processing tumbles to a four-month low, according to Bloomberg. Indian refiners are scaling back buying of Russian crude from elevated levels, as Ukrainian attacks hurt flows from the nation’s top supplier, with refiners widening their oil search.
Under threat, Saudi Arabia is rerouting oil exports yet again — forced away from the Strait of Hormuz in the Persian Gulf, the Saudis turned to the Red Sea, and now they are relying on a less dangerous but more complicated detour via the Suez Canal, as the NYT reports. Global fuel markets have little margin for error, with the world relying heavily on US refineries just as those plants are being pushed to their limits, according to Bloomberg. China’s biggest offshore oil and gas driller Cnooc said its first-half profits rose due to a surge in global energy prices, with profits rising after the Iran war boosted oil prices. The UAE’s Adnoc has ordered two more liquefied natural gas carriers, extending a recent spree of vessel purchases that will help expand energy exports — a $2.7 billion ship-buying spree. 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, with gas dropping with oil. Natural gas futures ended slightly lower after two days of gains, held up in part by forecasts for continuing heat across the southern two-thirds of the country, with US futures slipping in rangebound trading. European LNG prices have surged to their highest level since 2023, as the continent’s gas inventories were already low before the Iran war disrupted shipments, according to the FT. Natural gas has overtaken oil to become the biggest concern for European bond traders as depleted supplies of the key fuel threaten a resurgence in inflation, with gas eclipsing oil as the key inflation risk. UK household energy bills are set to hit a three-year high from October, with the Middle East war pushing prices up 4 per cent, according to the FT.
Copper rose for a fourth day — closing in on a record high — as short-term supplies continued to look tight despite an easing of last week’s severe market squeeze, with copper closing in on record. India’s government is selling about a 6% stake in Hindustan Copper Ltd., capitalizing on strong domestic liquidity and record global prices of the industrial metal as it seeks to meet its annual divestment targets, with the stake sale coming as the metal rallies to record. Hochschild Mining reported higher earnings over the first half year as the average gold price rose 47% and silver prices were 130% higher, with shares jumping after earnings soared. Indian refiners will divert 350,000 tons of sugar originally headed offshore into the local market, after authorities cleared the move to ease a supply crunch, with refiners diverting sugar to the local market. The pressure on Chinese steelmakers is likely to persist through the end of the year as elevated raw material costs compound weakness in demand, with steelmakers facing a profit squeeze. Iranian tankers are gathering off the Sri Lankan coast, cut off from home ports by the US blockade, seeking shelter close to Sri Lanka’s territorial waters, according to the FT Markets.
Deals & Corporate News
Vanguard, the world’s second-biggest investment firm, is making a bigger push into financial advice with its acquisition of wealth management platform Altruist in a $4 billion deal. Victory Capital Holdings agreed to acquire First Eagle Investments for about $7 billion, a deal the companies said will create one of the largest publicly traded traditional asset managers in the US, with the acquisition announced. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter, with SoftBank mulling the bond sale. Existing investors in Shein Global Holdings Ltd. are agreeing to a lock-up on new shares allocated to them in the fast-fashion retailer’s Hong Kong IPO, according to people familiar with the matter, with backers agreeing to a six-month lock-up. The fast-fashion retailer is preparing to list in Hong Kong at a quarter of its peak valuation, down from $100 billion to $27 billion, according to the FT.
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, according to people familiar with the matter, with the trio named as finalists in the AB Ports stake sale. Mota-Engil SGPS SA is set to sign a 30-year concession with the Democratic Republic of Congo to operate a key copper and cobalt railway, potentially backed with up to $1 billion of US financing, with the Portuguese builder winning the deal. Siemens Energy plans to spin off its Transformation of Industry unit, saying it could bring in external investors or undertake a potential capital markets transaction, and plans to deconsolidate the business while maintaining a minority stake, as the company announced. 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 — deals worth $1.5 billion must be investigated, the US says.
Braskem SA’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, with the debt rework putting Petrobras in the spotlight. Guggenheim Investments, the asset-management arm of Mark Walter’s Guggenheim Partners, is telling lenders that affiliates may look to buy portions of a loan issued by its financing entity after the deal’s distress, with affiliates may buy the hard-hit loan. Investors are questioning a $4.1 billion takeover of Brighthouse Financial because of some parallels to Mark Walter, whose troubles are disrupting the insurance world’s hottest trade, as the WSJ reports. Great Eastern Holdings Ltd. is backing Granite Asia’s inaugural private credit fund, according to people familiar with the matter, the latest example of an insurance company putting money into the asset class — the Singapore-based insurer is investing in the fund. 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, according to the FT. Insurers are piling into deals allowing banks to offload default risk, with the market for synthetic risk transfers booming in recent years, as insurers now offer banks unfunded structures, according to the FT.
Kohl’s recorded lower profit and sales in the second quarter, but raised its outlook thanks to a boost from tariff refunds, with the retailer’s results showing profit and sales fell. J.M. Smucker, the owner of Jif peanut butter and Folgers coffee, swung to a profit as sales climbed and lifted its outlook, saying it now expects net sales to decline 1% to 2% in its fiscal 2027, compared with a prior forecast for a 3% to 4% decline, with the company raising its forecast. Bath & Body Works raised its earnings outlook on higher profit, saying it now expects annual adjusted earnings per share to be $2.60 to $2.80, up from prior guidance of $2.40 to $2.65, with the soaps and fragrances retailer lifting guidance. Zoom Communications revenue rose on enterprise growth, and the video conferencing company also bumped up its guidance for the year, though its earnings guidance for the current quarter came in short of Wall Street’s forecast, with revenue rising. Intuit forecast slower growth and took 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 — the CFO discussed the tough choice to lower guidance. Li Auto, the Nasdaq-listed automaker, reported a second consecutive quarter of losses, even as it tried to spur demand by launching new models, with the Chinese EV maker posting a deeper loss on subdued demand.
XPeng Co-President Brian Gu thinks its robots will eventually be more profitable than its core electric-vehicle business, with the company betting robots will outprofit cars as Iron mass production starts. Hyundai is betting on the US hybrid boom to take on Toyota, with the world’s third-largest carmaker planning to release dozens of new and updated models by 2030, according to the FT. United Airlines is upping its bet on Instagrammable international destinations, with robust travel demand from Americans helping fuel new routes like Marseille and Ibiza, as the airline adds 10 new international routes. 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, with the airline nearing an investor stake sale. Saga’s over-fifties holidays are finally turning silver into gold, with swapping insurance underwriting for selling other companies’ policies and refocusing on its brand and customer base proving a good decision, according to the FT. The British Business Bank’s small business loans hit £4bn, with executive pay jumping at the state-owned bank amid questions over its underwriting of commercial banks’ lending, according to the FT. The risks of financing data centres are multiplying as Wall Street players extend themselves to underwrite this colossal new asset class, with the FT reporting on the $7tn AI data centre investment risks. SpaceX’s 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, according to the FT.
Financial Institutions & Regulation
Macquarie has dumped KPMG as its auditor after an Australian data scandal, with PwC retaining Australia’s most lucrative audit contract after a reversal by the financial services group, according to the FT. A Hong Kong court declined to remove Pricewaterhouse Coopers International Ltd. from a multibillion-dollar lawsuit brought by China Evergrande liquidators against the firm and its Hong Kong and mainland units, with the court ruling that PwC International can’t exit the Evergrande case. The Hong Kong decision has the potential to threaten Big Four firms’ partnership network model, as liquidators can pursue PwC globally over the Chinese property giant’s collapse, according to the FT. Deloitte will pay the US administration $21.5mn to settle a probe into “discriminatory” practices, with the firm one of several professional services businesses targeted by the American Alliance for Equal Rights, according to the FT. The Trump administration has been probing major US companies under a novel use of a federal law meant to police federal contractors, with Deloitte paying $21.5 million to end the DOJ fraud investigation over DEI policies, as the WSJ reports. The US audit regulator has scrapped its investor advocate role as the Trump-era revamp accelerates, with the Public Company Accounting Oversight Board axing the office set up under the Biden administration to represent shareholders, according to the FT. The chief executive of Interpath, the restructuring firm sold by KPMG to private equity group HIG Capital, has been fined over confidentiality breaches before the sale, with Mark Raddan fined.
Binance Holdings Ltd. 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, with Binance hiring compliance executives. Citigroup anticipates record global debt and equity issuance from South Korean firms in 2026 as companies tap international investors for growth capital, led by SK Hynix Inc.’s landmark $26.5 billion deal — Citi expects record Korea capital issuance. 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, with turnover sinking at the exchange preparing for an IPO. Purple Style Labs, the operator of Pernia’s Pop-Up Shop, will sell shares in an initial public offering in India next week, seeking to tap the demand for elaborate weddings and occasion wear in the world’s most populous nation, with the Bollywood-backed wedding fashion retailer launching an IPO. India’s government is driving the equity fundraising boom, with Modi’s administration appearing well-placed to meet its divestment target, according to Bloomberg. An exchange-traded fund strategy that delivers Treasury bill-like returns with lower taxes is getting a fresh boost as Wall Street firms bet the approach will survive rising scrutiny from the US Treasury, with Wall Street keeping minting box ETFs. Bank of Montreal plans to buy back shares after a strong quarter, with the big Canadian lender benefiting from double-digit revenue growth and an improved credit performance in its fiscal third quarter, with the lowest provision on impaired loans in the last 10 quarters — the bank launching a share buyback. BNP Paribas has secured a regional headquarters license in Saudi Arabia, boosting its presence in the kingdom as ties between Riyadh and Paris deepen,