Public Markets 3 Days

Last updated: July 10, 2026, 8:30 AM ET

Tech and Markets Brace for Earnings Season

U.S. equity futures edged lower on Friday as investors digested the record U.S. listing of South Korea’s SK Hynix Inc. and prepared for the start of second-quarter earnings season. SK Hynix’s debut on Wall Street was accompanied by the launch of several new leveraged exchange-traded funds tied to the memory chip giant, a move that has fueled bets on its stock. Nasdaq futures were lower and European technology stocks slipped in early trade, as investors looked cautiously ahead of SK Hynix’s New York listing later Friday. South Korea's Kospi index retreated more than 20% from its June peak, as sentiment started to turn on major chipmakers like Samsung Electronics and SK Hynix. Meanwhile, European earnings estimates are being raised at the fastest pace since mid-2024, a notable shift after two years of almost uninterrupted downgrades.

Corporate Dealmaking and Financial Sector Moves

Apollo Global Management Inc. is on course for a record year of acquisitions, launching deals worth billions, including a €3 billion financing agreement with Bayer for its contraceptives business and a $3.4 billion stake purchase. Bayer's sale will help the German pharmaceuticals group bolster its balance sheet after years of litigation over Roundup weedkiller. In the financial sector, Sumitomo Mitsui Financial Group Inc. is evaluating its India strategy, looking to consolidate its presence in the fast-growing banking market, as Milky Mist Dairy Food Ltd. gears up for its $213 million initial public offering. Cantor Fitzgerald LP is expanding its European reach with a new investment banking office in Milan, as the firm sees untapped advantages across Southern Europe driving its expansion.

Global Economic Trends and Geopolitical Influences

Oil prices remained volatile, stabilizing at the end of a bumpy week as talks between the U.S. and Iran continued despite a flare-up in fighting that drove a steep drop in traffic through the Strait of Hormuz impacting shipping. The International Energy Agency warned of a potential petrol and diesel supply crunch as refineries in the Gulf and Russia are hit by the impact of wars, while global consumption has remained high. Currency traders are beginning to buy protection against bigger exchange-rate swings after months of calm, as banks warn that shifting Federal Reserve expectations and elevated geopolitical tensions could. In Europe, a new scale-up fund expects to surpass its €5 billion target size, while the Dutch Public Prosecution Service has summoned Tata Steel over alleged criminal offenses including intentionally releasing harmful substances.

Automotive Sector Faces Challenges

Automakers are grappling with declining sales, particularly in China, where mounting competition from domestic rivals and a property crisis are stifling demand. BMW AG and Volkswagen AG both reported falling vehicle sales in the second quarter due to this worsening slump. Volkswagen is also looking to halve its model lineup and shrink capacity to cut costs, focusing on more attractive segments and adjusting production to current market realities in response to high costs. Porsche deliveries also fell 16% in the first half, dented by the end of production for its gasoline-powered 718 model and a strong demand for the all-electric Macan in the prior year.

Banking and Regulatory Developments

Circle Internet Group has received approval from the U.S. government to establish a national trust bank, marking a regulatory milestone for the launch of a cryptocurrency-focused bank. In India, SBI Funds Management Ltd.’s biggest investors are seeking to raise as much as $1.22 billion in what is expected to be the country’s first billion-dollar IPO of the year. Meanwhile, China is steering municipal borrowers away from issuing short-term bonds in the domestic market, as it seeks to curb fundraising by weaker issuers.

Airline Industry Navigates Costs and Demand

Delta Air Lines reported record demand as customers continued to pay higher flight prices, which helped offset sky-high fuel costs boosting revenue. However, profit margins were squeezed by these elevated fuel expenses, which were driven 77% higher than year-ago levels by the Iran war, signaling a wider knock to U.S. corporate profits impacting earnings. Pakistan is urgently seeking to purchase a shipment of liquefied natural gas after fresh hostilities in the Strait of Hormuz again disrupted supplies, compounding energy concerns.

Real Estate and Infrastructure Concerns

China Vanke Co. indicated that its first-half loss could widen to $2.2 billion due to low gross margins on property development projects and asset impairment charges, reflecting challenges in the real estate sector. In Senegal, an unfinished railway is emblematic of the country’s fiscal strains, with a hidden-debt scandal derailing the nation’s infrastructure dream hindering development. Separately, a Los Angeles grade school that requires applicants to have an IQ of 138 or higher is planning to sell $32 million of municipal bonds on Thursday funding education.

Private Equity and Investment Strategies

Apollo Global Management Inc. is approaching a record spend with significant deals, including its stake in Bayer's contraceptives business, as many private equity peers struggle to deploy capital. UBS has advised some clients to cut exposure to Blue Owl's private credit fund, impacting a fund it had been instrumental in setting up. Hedge funds, after a brutal March, have reported their strongest first-half results in five years, shaking off the volatility to post their best performance since 2021 outperforming expectations.

Goldman Sachs and Regulatory Scrutiny

Goldman Sachs is among the firms that have begun restricting how employees use popular prediction market platforms. The investment bank also noted that carry trades are seeing the most compelling backdrop in more than two decades, a strategy widely used in the currency market. Meanwhile, Meta has been ordered by European Union authorities to alter the ‘addictive design’ of Instagram and Facebook, as the company’s use of such features violated a digital safety law.

Inflationary Pressures and Market Sentiment

Gold steadied as traders assessed the fallout from renewed fighting in the Middle East and the prospects for interest-rate hikes to combat inflation. Precious metals finished lower, although analysts see upside to gold prices through the second half of 2026, suggesting ongoing support for the sector. Vanguard Asset Management Ltd. is buying inflation-protected bonds due to unusual moves in an oil-market gauge, prompting the firm to buy insurance against stickier-than-expected U.S. inflation hedging against.

Emerging Markets and Investment Opportunities

Nigeria is taking steps to ensure its stock market wins a status upgrade by an influential index provider, as the West African nation seeks to capitalize on renewed investor interest. Chile’s pension funds are facing a divide among analysts and investors regarding the impact of new investment rules on the broader market sparking debate. In India, Axis Bank Ltd., a top arranger of debt markets, has lost three senior executives, adding to a significant reshuffle underway at private-sector lenders.

Energy Demand and Supply Dynamics

The oil demand recovery is underway, but U.S.-Iran escalation clouds the outlook, according to the IEA, which projects consumption to fall by 1 million barrels a day this year, though the pace of decline is easing. Crude futures fell but are likely to remain supported if the Iran-related risk premium stays active, as traders weigh Middle East tensions and the rate outlook. The UK grid operator issued another warning over tight electricity supplies as a heat wave strains power systems, marking the third such alert this summer testing infrastructure.