Public Markets 3 Days

Last updated: July 25, 2026, 8:30 PM ET

Middle East Tensions Escalate, Impacting Global Markets

Oil prices amid escalating conflict in the Middle East, with Brent futures climbing as the conflict widened and Ukraine striking Russian infrastructure. Saudi Arabia after Iran-backed militants targeted energy sites, fueling fears of a broader regional war. Tankers sailed through despite the Houthi blockade, though scattered disruptions bred uncertainty. A Hong Kong-flagged supertanker executed a U-turn before reaching the Bab el-Mandeb chokepoint, a site of recent Houthi attacks. India flagged attack in Iranian waters, reporting the crew safe. The ongoing conflict has also, with calls for changes to bolster the country’s energy security. Developing nations like India and South Africa, having faced rationing during previous Middle East conflicts.

AI Spending Frenzy Cools Amidst Corporate Realignments

Corporate America has, with companies now mixing models and reshaping the industry's economics and power players. The insatiable appetite for AI investment from big tech has unleashed a relentless wave of bond sales, impacting the US corporate bond market significantly. Spending worries are weighing on tech shares, as investors await interest-rate decisions and Elon Musk’s empire struggles. Shares of SpaceX supplier STMicroelectronics, shedding over 15%, despite raising its data-center revenue target. Intel, however, though STMicroelectronics was hit by doubts over the AI spending boom as its third-quarter sales forecast missed expectations. Apple seeks clearance to buy semiconductors from a blacklisted Chinese company amid surging demand for AI.

Global Economic Landscape: Tariffs, Trade, and Shifting Alliances

New tariffs are back in the global economic spotlight, with the US hitting 60 countries with new levies as oil breached $100 a barrel. President Trump in retaliation for fines on US tech groups, potentially sharpening trade tensions. China has over Europe with new export controls, banning shipments to 14 companies in key sectors. Canada is and expressing ire, while Ukraine seeks a 30-year energy pact with Canada, proposing an "energy security bridge" focused on LNG supply. Large investment funds like Blackstone, KKR, and Brookfield in a $16 billion deal, marking the largest foreign investment in the Gulf state as it seeks to raise capital amidst Iranian attacks.

Market Movements and Corporate Deals

The "Trump trade" is, as traders who bet on aggressive economic policies have seen their positions falter. European stock markets are experiencing a rally that is, a departure from their historical resilience to sector-specific shocks. Big tech's debt flood is, driven by their substantial AI investments. In corporate deals, HSBC is to Allianz for $2.1 billion as part of an ongoing simplification strategy. Eni, through its Enilive subsidiary, is from Prax for an undisclosed sum. Japan's Seven & i Holdings with Poland's Zabka Group SA, though it continues to seek expansion opportunities.

Political and Social Developments with Market Implications

Political developments continue to shape market sentiment, with the US dollar. President Trump's political strategies, including his "Red Scare" tactic are being debated for their potential to rally voters. In Colombia, the Trump-endorsed president-elect, previously investigated by US authorities, faces scrutiny as the nation rations LNG due to port shutdowns. Meanwhile, philanthropies are hoping for a windfall from the upcoming IPOs of tech giants like Anthropic and OpenAI. In India, the education minister stepped down, highlighting the impact of social movements on government policy.

Corporate News and Sectoral Trends

In the automotive and transport sector, Canadian National Railway, citing firmer freight demand and shifting economic conditions. American Airlines cut guidance following a surge in jet fuel prices, while Harley-Davidson raised its forecast but faces pressure from European sales and tariffs. In the energy sector, Vitol Group as its profits halved to $4.2 billion. UK pub stocks slumped this week as a heatwave and higher costs offset World Cup sales boosts.

Legal and Regulatory Scrutiny

Wise's bid for a US bank license was, with regulators raising concerns about its anti-money laundering checks. Tech billionaire Chey Tae-won was in South Korea's "divorce of the century." Lindt & Spruengli AG faces a US lawsuit, with claims that the Swiss chocolate maker falsely promotes its efforts to combat child labor. In the US, Taylor Farms was to try to delay a cyclospora recall, though officials proceeded with publicizing the FDA's findings.

Other Notable Developments

The U.S. stock market, with the Dow Jones Industrial Average and S&P 500 closing higher, while the Nasdaq composite fell. In a significant legal development, a tech billionaire was ordered to pay $640 million in South Korea's "divorce of the century". South Korea's cash-rich AI boom winners are to build tech capabilities and avoid tariffs. Euronext NV is considering creating a market for private securities, potentially increasing competition with the London Stock Exchange.