Public Markets 3 Days

Last updated: July 18, 2026, 5:30 PM ET

Middle East Tensions Escalate, Impacting Global Markets

The U.S. and Iran are inching toward a wider war as strikes across the region continue for a seventh straight day. Overnight attacks damaged bridges and water plants in Iran, with Kuwait suffering significant damage to an oil facility and a power plant. U.S. officials report Iranian attacks targeting troops in Jordan have killed two soldiers and left another missing in the past five days. Israel, meanwhile by warning against recruitment efforts. Discussions on diplomacy between the U.S. and Iran are ongoing, with negotiators considering how a diplomatic approach might be structured. The strategic petroleum reserve has hit its lowest levels since 1983, a factor that could blunt the impact of oil shocks amid the escalating conflict.

AI Frenzy Cools as Chip Stocks Tumble

A surprise breakthrough from Chinese startup Moonshot, sending AI and semiconductor stocks sharply lower and driving the high-profile chipmaker group into a bear market. Concerns are growing that the artificial intelligence spending spree is becoming harder to justify. This selloff capped a brutal week for what were once the market's favorite stocks, with chips. IBM CEO Arvind Krishna, as the tech giant's position in the new tech cycle is in disarray. Despite the volatility, some analysts believe it is too early to buy shares of big AI spenders as the rotation may not last, while others suggest sharp stock rotations are necessary for the equity rally to broaden beyond the tech sector.

Corporate Dealmaking and Market Movements

Telecom Italia with a cash and paper offer that would give the state-controlled postal service full control of the telecoms group. In the UK, Superdrug owner AS Watson, having aimed for a dual listing this autumn. However, the London IPO market, and the UK is on course for its best year for new listings since 2021. In the U.S., Costco as space becomes scarce, experimenting with new store formats. Meanwhile, CLO profits among investors who are heading for the exits and arguing about who is to blame for the deterioration of this once-lucrative investment.

Political and Economic Developments Shape Markets

U.S. corporate insiders, a sign some investors interpret as a red flag suggesting insiders are wary of market conditions. The WSJ Dollar Index to 97.09. In Europe, UBS and Deutsche Bank as European stocks rally, driven by accelerating earnings growth and confidence despite geopolitical jitters. Hungary's $20 billion electric-vehicle industry is facing a reckoning as the new leadership cracks down on environmental regulations. India's second-largest private-sector lender, ICICI Bank, benefiting from healthy loan growth.

Wildfires and Weather Disrupt Operations and Air Quality

Wildfire smoke from Canada in the Midwest and East Coast, with conditions expected to linger in the Upper Midwest. Forecasters warned of winds over 70 miles per hour in New York City and Philadelphia due to thunderstorms. Meanwhile, powerful winter storms in central Chile have curtailed operations at copper mines and ports, though major mining installations in the north remained unaffected. This extreme weather comes as Donald Trump for failing to manage its wildfire response, as smoke blankets U.S. cities.

Retail and Consumer Trends Evolve

The rise of delivery apps, as services like Door Dash and Uber Eats level the playing field for smaller players. Lego striking back with chips in its bricks, introducing new Smart Play sets with motion sensors, lights, and sound. Americans spending more, with lower gas prices offering some relief, although prices are now creeping higher again. In the gambling sector, Ladbrokes owner Entain will cut 2% of its staff due to higher UK taxes and tighter regulation.

Legal and Regulatory Scrutiny Continues

Madison Square Garden over an article that allegedly implied discriminatory tracking of celebrity sexual orientation. Big Law firms over capitulation deals, as the Department of Justice demands depositions from firm leaders. In the UK, data errors, raising questions about the quality of information provided by the FCA. Separately, PwC and a partner have been fined more than £3 million over audit failings related to Babcock.

Emerging Markets and Investment Opportunities

Spain's Naturgy, its largest project in the country. Apollo Global Management plans to invest up to $20 billion in Mexico through its private credit business. China urging better on green minerals, while Shenzhen Inovance Technology Co. Ltd., a competitor to Siemens, is eyeing acquisitions in Europe to expand its market reach. Anglo American Plc has selected a preferred bidder for the sale of De Beers, the world's largest diamond mining company.

Political Campaigns and Market Influence

The fund-raising race for the 2026 midterms is tighter than it seems. Cindy Burbank, Nebraska's Democratic Senate nominee, has filed to withdraw from the race, potentially clearing a path for an independent candidate. In South Carolina, Trump, scrambling the primary landscape. Meanwhile, the White House is grappling with how deeply betting on political events has infiltrated government, with officials facing temptations related to inside information.

Other Notable Developments

The FDA, which clinical trials show can lower cholesterol far below statin effectiveness. Roger Summit, who invented an early online search service, has died at 95. Taylor Farms has expanded its iceberg lettuce recall to 27 states amid a cyclospora outbreak. Traders are increasingly betting against SpaceX, with shares falling below their listing price for the first time.