Public Markets 3 Days

Last updated: July 13, 2026, 11:30 PM ET

Geopolitical Tensions and Market Volatility

Escalating Middle East conflict, with crude futures holding gains amid intensified U.S.-Iran hostilities. The Strait of Hormuz to its lowest point in a month following strikes, while President Trump on vessels transiting the waterway, potentially doubling shipping costs and raising inflation concerns. The Philippine peso as rising oil prices pressured the currency, and the Singapore dollar consolidated but faced potential headwinds from the Mideast tensions. Traders scrapped recommendations tied to subsiding tensions as the conflict reignited. Iran managed to export at least 57 million barrels of crude during a gap between U.S. blockades, highlighting the market's vulnerability to disruptions, even as Russia's oil output fell to its lowest in at least two and a half years due to Ukrainian attacks.

Asian Markets Face Headwinds

South Korean retail investors as leveraged exchange-traded funds tracking major chip stocks tumbled up to 45%. Shares of SK Hynix Inc. fell in Seoul following a rout on Wall Street, reflecting increased investor caution after a significant rally in chipmaker stocks. Analysts expect weaker to persist for China's major airlines due to lackluster domestic travel demand, causing their shares to lag Cathay Pacific Airways Ltd. by nearly 50 percentage points this year. Investors cut back on Asia's chipmakers, while some companies are turning to Chinese AI models to reduce costs. India's large-cap stocks, however, are starting to look more reasonably valued, according to Jefferies, potentially signaling a comeback supported by global funds.

US Markets and Economic Indicators

U.S. stocks fell as a sharp selloff in chip stocks rattled confidence in the artificial-intelligence trade. Bond traders for a July interest-rate hike ahead of inflation data and Federal Reserve testimony, with Fed Governor Christopher Waller stating that policymakers if core inflation continues to signal broad price pressures. The dollar's recent gains are at risk if the AI stock selloff deepens, according to Apollo Global Management. Data-center builders worth billions amid unrelenting demand for computing power. Meanwhile, the health department rescinded a freeze on $10 billion in funding for five Democratic states after facing legal challenges.

Corporate Dealmaking and Sector Focus

Democratic states are preparing to file a lawsuit to halt Paramount's $111 billion merger with Warner Bros., potentially delaying the deal and costing tens of millions of dollars. Seidler Equity is exploring the sale of its stake in Rawlings Sporting Goods Co., a baseball apparel maker. Shell sold Indian for $1.8 billion as it refocuses on oil and gas. Oncoclinicas do Brasil Servicos Medicos SA is preparing to file for an out-of-court debt restructuring. Royal Bank of Canada business, anticipating demand for hedging as AI debt fuels growth. Deutsche Bank AG is expanding its private banking business in Dubai with hires from Standard Chartered.

Political and Legal Developments

The killing of a man by an ICE agent in Biddeford, Maine, became an issue in the Senate race, with Democrats seeking to tie Senator Susan Collins to President Trump’s immigration policies. The Justice Department is investigating allegations against UAW President Shawn Fain for improper actions. A judge denounced Trump’s IRS lawsuit as an improper exercise in self-dealing and recommended disciplinary action. The administration on Iran in the battle over the Strait of Hormuz. Senator Lindsey Graham's death the GOP agenda in Congress, with his sister appointed to finish his term.

Global Economic Outlook

Europe risks "explosive" if it doesn't address its debts, according to the IMF. The cost of cutting reliance on China for the West, highlighting the challenge of reducing Beijing's dominance in strategic supply chains. Zurich and Geneva rank top in disposable income despite high living costs. Argentina's power-generation unit of YPF SA has filed for a US IPO, joining a growing pipeline of Argentine companies seeking New York listings. Canada's oil sands firms with Alberta and federal governments.

Market Trends and Investor Sentiment

Gold declined amid a broad rise in global bond yields and monetary policy concerns, with prices sliding from record highs. The S&P 500's price-to-earnings ratio depends on who defines the "E", suggesting a need to read the fine print. Investors are on Asia's chipmakers, and some companies are turning to Chinese AI models to cut costs. The quarter-trillion-dollar onslaught of AI bonds, as tech giants borrow heavily. Wall Street strategists expect a group reviewing the Federal Reserve’s balance sheet.

Industry-Specific Developments

Akasa Air, India's youngest airline, is seeking funds to raise 10.5 billion rupees ($110 through equity and debt as Iran war drives up costs. Dr. Reddy’s is encountering trouble with its weight-loss drug. U.S. electric vehicle sales are down, but EV chargers in Southern states. Companies are redesigning packaging and slashing marketing budgets to maintain the psychologically important $9.99 price point in retail as it becomes compelling.

Legal and Regulatory Scrutiny

Appeals courts revived lawsuits tying Tylenol use in pregnancy to autism and ADHD. The Trump administration is facing a lawsuit from Democratic states seeking to block Paramount's acquisition of Warner Bros. Discovery. The Justice Department is seeking to compel testimony from Times reporters who wrote about the new Air Force One.