Last updated: August 28, 2026, 4:49 AM ET
Global Equities
US stocks rallied as Nvidia’s rosy growth projection assuaged fears about the durability of the artificial-intelligence boom. The chip maker’s shares posted their steepest climb in a year, adding $442 billion in market value in the second-largest one-day gain by any stock in history. Futures climbed further into Thursday’s session, with Nasdaq futures buoyed by the earnings and a premarket surge in software shares. The bullish forecast suggests the AI trade has more room to run, though some investors remain concerned about the return on massive AI investments.
Nvidia’s victory lap extended to software stocks, while CEO Jensen Huang rebutted criticisms from Bill Gates. The company insists its sales “flywheel” is robust enough to fund financial support for frontier AI labs and data-center developers. However, Nvidia has paused revenue-sharing deals with AI cloud companies less than two months after announcing the program. The company’s supply-chain gamble involves $279 billion in commitments, a strategy that wins supply battles but carries downsides. Without Nvidia, the AI revolution might look very different.
Asian equities were set to open mildly lower Friday as investors braced for Fed Chair Kevin Warsh’s Jackson Hole speech, where some expect a hawkish tone. The Nikkei rose 0.4%, led by IT services stocks following overnight gains in US technology shares. European indexes were mixed at the open, though AI-related stocks jumped on Nvidia’s results. European stocks dropped as political worries weighed on French banks, while the FTSE 100 was set for a rebound with the pound holding below $1.36.
Rates & Jackson Hole
All eyes are on Jackson Hole, where Fed Chairman Kevin Warsh faces his first major market test. Treasury yields edged higher for a second day as investors geared up for the speech. A chorus of investors, including JPMorgan and Apollo, is urging Warsh to deliver a strong rebuke of high inflation to boost the long end of the Treasury market. Currency traders are increasing hedges for further dollar gains ahead of the speech.
Warsh has to pick a side in the bond-market battle over deficits, with the Treasury Department and Fed moving toward a more coordinated approach that could fuel a bond rally by reducing longer-dated supply. The KC Fed’s Jeff Schmid previewed the symposium, which marks the first under the new Fed chair. Meanwhile, the Treasury auctioned $44 billion in seven-year notes at a yield of 4.512%, the highest since December 2024. Investors shouldn’t draw the wrong conclusion from Treasury yields, as they are marking up expectations for long-run US economic growth.
Global bond markets are having a rough summer, but it’s even uglier abroad — countries with large debt burdens like France, Italy, the UK and Japan have come under the heaviest pressure. The dollar index was unchanged as the Jackson Hole meeting began, while Asian currencies consolidated ahead of the speech. Wall Street’s enthusiasm for Bessent and Warsh has faded, with some warning of a credibility crisis.
Commodities & FX
Gold steadied near $4,600 an ounce as investors weighed the outlook for US interest rates ahead of Warsh’s speech. New York gold futures were flat at $4,654.70, stuck between expectations of higher rates and worries over US debt. Jackson Hole poses the next key test for precious metals, according to OCBC. Gold’s niche status in Western portfolios means even modest inflows could send prices higher. Gold miners are having a better month than chip stocks did in years, with South African mining stocks set for their best month in at least two decades.
Oil edged higher on fading hopes for the reopening of the Strait of Hormuz, though flows have recovered to around two-thirds of pre-war levels, according to Goldman Sachs. Crude flows are creeping higher as Gulf producers boost exports despite Iran’s lingering threat. Oil pulled back earlier on improved chances of reopening, with analysts cautiously positive about Oman-Iran talks. US natural gas futures remained higher after weekly storage data showed inventories rose less than expected. Wheat soared to the highest level in three years as the Black Sea crisis deepened, with Chicago contracts trading around 30% above their end-of-June low.
The Philippine peso weakened past 62 per dollar, breaching a level some analysts flagged as potentially prompting authorities to intervene. The yuan has barely budged despite US sanction threats over Iran, giving strategists confidence in bullish calls. Yen intervention gains have faded one month later as fundamentals bite, with the intervention slowing the currency’s short-term slide but doing little to alter driving forces. The dollar’s share of global FX reserves has picked up, but de-dollarisation may not be over, according to analysts who say the recent uptick doesn’t amount to a trend reversal.
Deals & Corporate Finance
Banca Generali confirmed it is evaluating Monte dei Paschi’s $10 billion takeover proposal, envisioning new growth opportunities for both companies. Samsung Biologics is seeking to raise about 3 trillion won ($2.2 billion) in a rights offering to fund its acquisition of Poly Peptide Group. Sweden’s Boliden will buy a majority stake in zinc producer Nexa Resources for $1.3 billion, acquiring Votorantim’s near-65% stake. Apollo is acquiring a co-controlling stake in Atlantic Aviation from KKR at a nearly $10 billion valuation.
Solstice Advanced Materials and Element Solutions cancelled their deal after shareholder feedback on the $12 billion cash-and-stock acquisition. Enbridge formed a $1.95 billion joint venture with KKR and Apollo to expand its British Columbia natural gas pipeline system. EQT barely raised its tender offer for Kakaku.com and extended the offer period, prolonging a bidding war. Dentsu Soken shares rose to a record after receiving a buyout proposal from Itochu at ¥2,880 per share.
Vista Global Holding is considering a European IPO that could raise more than $1 billion. Aker shares jumped after Nscale signed a $45 billion contract to provide AI compute capacity in West Virginia. Moderna plans to raise $2 billion from convertible notes to invest in its cancer vaccine business and repay debt. Zero-interest convertible bonds are set for a record year amid high AI stock volatility as companies seek to limit borrowing costs. AQR Capital Management is contesting the price of the $8.4 billion Clearwater Analytics buyout. Bain Capital is taking an equity stake in clearing broker RQD* amid an options boom.
Earnings & Corporate News
Nvidia posted another record quarter, with investors focused on ROI concerns. Marvell sees accelerating growth as AI demand boosted second-quarter profit and revenue, raising its forecast. Workday reported higher profit and revenue on AI agent adoption, with fiscal second-quarter profit of $632 million, up from $228 million a year earlier. Ulta Beauty raised its forecast as sales grew, now expecting EPS of $28.70 to $29. Best Buy also raised its outlook to $6.70-$6.90 adjusted EPS.
Dollar General lifted its outlook as profit and sales climbed, while Dollar Tree issued an underwhelming outlook on tariff reinvestment costs. Both dollar stores reported sales gains as higher gas prices forced shoppers to pare back. Burlington Stores plans to use tariff refunds to lower prices. Gap cut its sales outlook on Old Navy weakness, bringing in Michael Francis as CEO of the brand. Build-A-Bear cut its outlook and fired an executive after sales fell, now expecting $500-$525 million in annual sales.
Hormel Foods cut its sales outlook to $12.1-$12.2 billion on lower quarterly revenue. Pernod Ricard warned Americans aren’t drinking enough, with organic declines of 14% and 19% in US and Chinese markets. Delivery Hero lifted guidance on accelerated growth in quick-delivery groceries. Royal Bank of Canada posted record income of C$6.02 billion, up from C$5.41 billion a year earlier. TD Bank earnings were lifted by growth in Canadian banking and capital markets.
Asia-Pacific Markets
South Korea’s National Pension Service posted a 27.2% return in the first half, its best performance since at least 2022, boosted by a powerful domestic equity rally. India’s Sensex was hit by a “flash crash” during the unpopular closing auction, briefly plunging about 3% in 20 minutes. The new closing-auction system has produced extreme options swings, creating and wiping out gains in minutes. Tempsens Instruments jumped 110% in its debut, the best first-day performance in India this year. India large-cap stocks may be poised for a comeback after the Nifty lagged mid- and small-cap gauges.
Japan’s two-year government bond auction showed weaker demand amid speculation of central bank tightening. Nippon Life is open to becoming a net JGB buyer next fiscal year, finding current rates attractive. Japan’s hybrid bond issuance is rebounding, driven by yield-hungry investors and acquisition funding needs. The Japanese regulator warned against single-stock leveraged ETFs, saying they can amplify volatility. Uncertainty around HDFC Bank CEO Sashidhar Jagdishan’s term is weighing on the stock, according to Macquarie.
BYD needs EV success overseas to sustain its $20 billion stock rally despite geopolitical headwinds. Barclays is seeking deeper ties with India’s billionaire founders in private banking. Vedanta plans a third rupee bond issue this year, raising at least 10 billion rupees. China is expected to supply the bulk of India’s fertilizer tender, shipping at least 1.2 million tons. SK Telecom will create an AI data-center company with $2.2 billion from KKR and South Korean firms. Flashlight Capital is targeting Samsung in South Korea’s first test of new shareholder rights rules.
Credit & Structured Finance
AI debt is testing investor tolerance, with price premiums a telltale sign, according to a top JPMorgan bond banker. Mexico returned to the Samurai bond market for the first time in two years, raising ¥282.8 billion ($1.77 billion). High-yield municipal bond investors have the luxury of being picky as risk premiums shrink. A nonprofit is advancing a plan to tap muni bonds to create $3 million homes in Pacific Palisades. Eurozone government bond yields opened slightly higher as focus shifted to elevated gas prices.
The “burn the bonds” stage of the debt cycle is here, with France’s debt-cancellation call potentially spreading to other highly indebted governments. Australian pension funds had a dozen products fail the regulator’s annual performance test, including options from AMP and Insignia Financial. Bathla Group’s insolvency has left private credit investors exposed in Australia’s troubled housing market. UK venture capital investment rebounded to record levels in 2026, with demand coming mostly from overseas investors.
Regulation & Legal
A federal judge ruled the Trump administration’s blacklisting of Anthropic was illegal, saying the government retaliated against the AI startup “for constitutionally protected expressive activities.” The court also forced the removal of Trump’s name from the Kennedy Center, blocking a plan to add an inscription honoring the president. A judge barred the Postal Service from imposing new restrictions on mail-in voting. US bank regulators will narrow enforcement focus to financial risks as part of a deregulatory push.
The Solicitors Regulation Authority is investigating Gunnercooke over work linked to collapsed lender MFS. Alphabet agreed to pay £260 million to settle a UK class action over Google Play overcharging. eBay banned air-bag sales following deaths involving counterfeit parts. A US servicemember and KPMG employee are targets of a prediction markets crackdown, with charges possible this fall. Prediction markets and states have clashed, setting off a furious political battle involving Kalshi, Polymarket and nearly every state attorney general.
Geopolitics & Policy
The Trump administration is in advanced talks for a stake in Venezuelan oil fields, with a deal that would give the US direct ownership in 17 fields holding some 90 billion barrels of reserves, according to Axios reporting. President Trump signed an executive order to rename Lake Ontario to Lake America, reiterating criticism that Canada “treats us very badly.” Canada rejected Trump’s trade demands, and the breakdown of talks has raised questions about the future of tariffs. Trade talks may resume if France backs off a cultural issue, a Canadian official said.
The CIA chief delivered a bleak assessment of Russia’s war in a secretive Moscow visit, pushing the Kremlin toward a peace deal. Sweden will donate 10 coast guard vessels to Ukraine for rescue and mine clearance operations. The Russia-Ukraine war has become more ruthless and destructive but no closer to ending, with combat in the drained Kakhovka reservoir basin a deadly game of cat and mouse. Saudi Arabia appears to be preparing for a new war with the Houthis after weeks of attacks. The Qatari prime minister traveled to Tehran as the Iran war nears the six-month mark.
Trump plans to mark 9/11 at the Pentagon, not Ground Zero, after the memorial’s organizers declined to allow speeches. The administration will expand deportation flights to Haiti from once a month to once a week. The US will withdraw 200 troops from Nigeria, though terrorists continue to attack. ICE arrests have soared across the US, and an ICE agent was released from Texas jail after Minnesota lost an extradition fight.
Meta & Tech Policy
Meta’s $17.1 billion settlement with states over teen social media use has parents feeling some validation but skeptical that much will change. The settlement shows the wrong way to keep kids safe, according to critics who say mutual compromise is flawed. Mark Zuckerberg wants to make sure YouTube and TikTok share his pain, as the deal could hurt competitors who don’t abide by the same rules. The settlement may actually help Meta, costing less than expected while hurting rivals more. “Anxious Generation” author Jonathan Haidt says the landmark settlement seems to agree with his critique of social media. Meta projected it could spend $10 billion annually on Anthropic’s tools despite public criticism.
Anthropic launched a tool that can manipulate laboratory equipment, designed to automate scientific experiments. OpenAI and 100 others warned that the window to defend against AI attacks is narrowing, with a wave of AI-enabled cyberattacks coming. AI’s hacking capabilities are severely underestimated, making it startlingly easy to put together cheap and destructive attacks. Safe AI is going to get pricey as the R&D bottleneck approaches. A cyber attack on the UK’s largest airport group exposed data of 8.7 million customers. The secret AI lives of Gen Z are being revealed, including privacy concerns and workplace habits.
Energy & Commodities
Chinese solar manufacturers posted steeper losses in the first half, underscoring the prolonged downturn in renewable energy. Total Energies may be reimbursed about $1.3 billion for loans to Arctic LNG 2 as it completed its exit from the US-sanctioned venture. The US Army is making a $2 billion push into nuclear power, awarding contracts to five companies for microreactors. Indonesia’s palm oil production may shrink by up to 3 million tons next year due to El Niño, adding to upward price pressure. An investor is betting on turning El Niño into a windfall, while analysts can’t find the oil the US says is flowing through Hormuz.
South Africa will raise the benchmark price used to calculate sugar import duties, a move long-sought by domestic producers. Chinese container liners are set for an earnings windfall as freight rates surge. Orient Overseas warned that freight rates may come down as seasonal demand wanes and new ships enter service. Timber was gold in the South until a market collapse crushed the forest economy, threatening rural economies. Creditors say Enviva’s former C-suite blew up the company by chasing bonus targets in a $2 billion brawl.
Real Estate & Infrastructure
Flat owners won a “right to manage” case at the UK Supreme Court, stripping freeholders of a powerful tool. Autumn can’t come soon enough for home sellers, as the housing market is highly seasonal. Sanjeev Gupta’s family took out a £24 million mortgage on their Belgravia mansion, with Topland providing the bridging loan. The Thames Water saga undermines the case for more market solutions, as privatisation has become associated with failures. LA Mayor Karen Bass eased the street vending crackdown after debate over comparing vendors with homeless encampments.
Healthcare & Pharma
Big Pharma is stepping up the fight against counterfeit weight-loss drugs, with Novo Nordisk and Eli Lilly using court orders and public campaigns. Novo’s Wegovy pill is fueling higher Danish growth, with Denmark raising its 2026 forecast for the fourth time. The FDA approved a new drug for pancreatic cancer that could be the first of many similar treatments. Cowboy clinics are selling unproven longevity treatments, with an FT investigation finding a thriving market for stem cell therapies. New Covid vaccines for fall 2026 have been approved for people 65 and older and younger people with underlying conditions. Health care stocks including Novo Nordisk and Innovent were covered in the latest Market Talks.
Consumer & Retail
Costco’s $4.99 rotisserie chicken defies inflation thanks to a company-built factory, though resisting rising prices is a constant struggle. The Big Chicken series examines how chicken became the world’s favourite protein. Starbucks dropped a drink powder that enveloped baristas in clouds of dust, leaving them coughing and sneezing. SSENSE, a Canadian retailer, is moving operations to the US so American customers can avoid hefty tariffs. Hotel groups are expanding beyond the Med’s swarming coastal strips, boosted by AI and social media. Five new hotels from Cape Cod to Croatia offer late summer getaway options.
Opinion & Analysis
There is a sickness worse than wokeness, as the anti-woke movement’s “cure” was more intolerance and more repression. The media’s lawfare enabling sees legal journalists cheer on meritless lawsuits against Trump. JD Vance gets Hamilton wrong, rejecting Milton Friedman’s free-market principles in favor of bigger government. The Federal Housing Administration is fine, and UWM’s $2 billion loss shouldn’t be conflated with program-wide performance. Even Machiavelli wouldn’t like Trump’s America, as we are hated but not feared. In asset management, the race for scale is becoming urgent even with markets at record highs.
Other Markets & News
Bof A’s Savita Subramanian is taking “flak” for her street-low S&P 500 call. The ETF industry is packing sports teams into new funds. Bitcoin is becoming mainstream through IBIT, MSBT and the ETF process, making it easier to swap holdings for ETF shares. The Trump family’s new crypto bank is backed by an Abu Dhabi sheikh with a 49% stake. Kalshi and the Weather Co. joined forces on climate trades. The “headless software” trend signals further AI-led shake-up in the software industry. Humanoid robots will be useful, just not as we imagined — the real value lies in less flashy industrial cousins. The great junior consultant reskilling is underway as AI takes over technical tasks.