Public Markets 24 Hours

Last updated: August 26, 2026, 9:18 PM ET

Equities

The S&P 500 and Nasdaq Composite closed flat Wednesday as investors adopted a cautious posture ahead of Nvidia’s earnings report. The world’s most valuable company, Nvidia, beat expectations for the 15th consecutive quarter and projected roughly 70% sales growth for the next fiscal year, sending its shares higher in postmarket trading and lifting Nasdaq futures. The bullish outlook bolstered optimism that the AI rally has further to run, with chipmakers and tech names climbing alongside it, though European semiconductor stocks were mixed.

Nvidia’s data center division grew 117% last quarter as clients race for computing power, positioning results to bolster its leadership in the AI infrastructure boom. Yet the company’s growing balance-sheet exposure via vendor-financing deals raises the question of a $1.5 trillion revenue gap between the AI computing capacity being built versus monetized. Analysts increasingly view its massive hold on the market as a $200 billion “balance sheet-as-a-service” that underpins its ecosystem, even if the language needs careful decoding.

Other tech names moved, with identity management company Okta lifting its full-year outlook to revenue of $3.22 billion to $3.23 billion, up from its prior view, after AI agents spurred demand. HP’s revenue rose, though profit fell, as higher prices offset fewer PC sales; the company reported profit of $661 million, or 71 cents a share, down from a year earlier. Salesforce raised its full-year forecasts, as profit and revenue rose while it expanded its partnership with Anthropic’s Claude.

The market is questioning Microsoft’s lack of transparency around AI business metrics, from capex to its flagship cloud platform. A quieter but notable theme is valuation realization — an AI prodigy who once won over Silicon Valley lost billions, underscoring how quickly sentiment can turn.

In the broader market, U.S. stocks had ticked down on Tuesday after hot inflation data, leaving traders waiting for the chip bellwether’s numbers. By Wednesday’s close, the market had recovered to flat finishes with investors liking what they saw.

Rates & Inflation

The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure index, held steady in July at elevated levels, keeping a potential policy response in play. The core PCE reading remained hot. This keeps bond yields climbing, as Treasury yields edged higher following the data. The dollar recouped half of its losses from last week’s buyback-induced decline, underscoring how resilient the greenback has become. Treasuries slipped ahead of that reading, as investors awaited the data, with Fed hike risks in focus.

The morning currency report showed dollar strength persistence as markets price continued inflation persistence. The higher-than-expected durable goods orders added to the banner data point.

Treasury & the “Bessent Put”

Treasury Secretary Scott Bessent’s unconventional approach, including the move to prop up the bond market, has Wall Street on notice and the Fed aiming to check him. Concerns of a collision course dominate headlines, with the risk being that polite institutional responses begin to create noise — as per the FT’s newsletter on the dubious read. Traders are already scuttling bets — Morgan Stanley’s Vishal Khanduja cut long-bond bets in the wake of Bessent’s unexpected intervention.

Early signs suggest the “Bessent Put” might actually be working for the bond market, according to analysts. Citadel Securities’ Frank Flight has already reversed his bearish call on long bonds, citing crowded positioning and improvement. The Treasury’s November refunding is now the biggest wildcard as analysts speculate on larger structural shifts. The bond intervention represents a potential direct political challenge to the Fed, a point covered by the Financial Times.

Energy / Commodities

Oil futures lost further in choppy trade, after the US appeared to have sewn a significant diplomatic deal with Iran over the Strait of Hormuz, snapping a three-session gaining streak. The trade fell by over 3.5%.

Market dynamics: Tankers gather off Sri Lanka as Iranian maritime risks rise, while the US threatens to use a Civil War-era court to seize Iranian oil as prizes. Freight rates remain at record highs, and a shipping boss warns the war may spiral into a Ukraine-style stalemate.

U.S. natural gas futures rose to the highest in a month, with hot weather lingering into late August. In Europe, natural gas has overtaken oil as the key inflation risk for bond traders due to the specter of depleted supplies. Traders noted that Europe’s diesel crunch has triggered the first Mexican supply in seven years.

Diesel crunch: US diesel supplies hit a record seasonal low, threatening to push prices even higher. Diesel prices are close to record highs, a trend hitting consumers while helping oil companies, further underscoring a complex global energy picture with China’s CNOOC reaping profits on war-driven prices.

MSC, the world’s largest container line, has suspended new bookings to Novorossiysk after one of its vessels was attacked by a drone. Indian refiners are scaling back Russian crude due to attacks on flows.

Gold and bitcoin ETFs drew $7 billion as investors are no longer choosing between hedges — they’re buying both.

Metals & Materials

Copper retreated from record close points as the dollar came back and easing squeezed conditions; earlier stress was pushing prices to extremes. This kept rates for the metal elevated, but surging values made it a changing trade. India’s government tapped the rally to sell down a 6% stake in Hindustan Copper at record global prices. South Africa heads for the smallest wheat harvest since 2019, with output falling 7.5% year on year. India will divert 350,000 tons of sugar to the local market, while the world gets its first US phosphate plant in decades via a $450 million Louisiana plant.

FX

The dollar rose by the most in over two weeks after hot PCE data. Colombia’s peso stumbled this week as a dollar shortage hit the carry trade. Colombia’s central bank governor warned policymakers can do little, as a soaring peso puts exporters at a “tremendous disadvantage.”

Rates & Credit Markets

Romania risks losing €770 million in EU funds after failing to pass a unified wage law. Mexico cited improving CDS levels as a sign of good standing, even as its bonds trade around speculative grade.

IPO Activity & Dealmaking

Citigroup expects record Korean issuance in 2026. KNDS plans to restart investor meetings for a possible IPO after the defense stock downturn scuppered initial plans. Prudential plc will sell a 2% stake for $327 million in its Indian asset manager, while India’s divestment boom continues as the state sells equity in Hindustan Copper.

Purple Style Labs will sell shares next week to tap demand for occasion wear. Shein’s backers agreed to a six-month lock-up on new shares in its planned IPO.

Options turnover fell at India’s biggest exchange, while Indians put a record amount abroad in June to buy equity and debt. Vanguard and Victory Capital — consolidation: Victory Capital will buy First Eagle for $7 billion, creating one of the largest traditional asset managers, with deal volumes running to $53.8 billion, the highest in decades. Vanguard bought Altruist in a $4 billion deal and is pushing into wealth. Australia’s second-largest pension took a big yen bet expecting BOJ hikes. Insurers bought greater default risk came via credit deals; Great Eastern invests in private credit funds.

Banks and Fin Tech

Banks consider issuing their own stablecoins as they remain on the defensive, seeing other companies launching coins. In the UK, the Treasury gave the Bank of England a new legal objective to innovate digital currencies and promote the UK as a hub for stablecoins.

Central Banks & Policy

Fed Governor Lisa Cook defended her position against President Trump’s latest attempt to oust her, amid political pressures on the central bank. Warsh, the new Fed chief, faces pressure rural rate risks as he considers his first address at Jackson Hole this week, with bond markets on edge.

Corporate & Earnings

OpenAI is the sole investor in its new $400 million fund dedicated to early-stage startups. SoftBank mulls a bond deal of $10 to $20 billion to refinance its OpenAI stake. Anthropic has agreed to a $45 billion data center deal with UK start-up Nscale to speed up its AI infrastructure.

Retail

Urban Outfitters sales rose 10% to $1.66 billion in the second quarter, driven by strength at Free People.

British property markets: London’s homebuyers require an extra £35,500–in deposit to counter mortgage rate rises.

The other retail earnings: Kohl’s said lower-earning shoppers are pinched, as profit and sales fell. Bath & Body Works raised earnings outlook despite cautious signs, while Abercrombie & Fitch lifted its outlook on profit and sales rise.

Insurers and Risky Assets

Australian pension fund Y, a vehicle changing the game.

In Hong Kong, a court ruled that liquidators can pursue PwC internationally over Evergrande, a case that threatens the Big Four network model. PwC International [can’t exit the case](https://headlinesbriefing.com/market/bloomberg-markets/hk-court-rules-pwc-cannot-exit-evergrande-lawsuit-27...[部分（后半部分较完整）].OtherU.S.durablegoodsordersrosemorethanexpected to $339.3 billion in July.