Public Markets 3 Days

Last updated: July 28, 2026, 8:30 AM ET

Tech Stocks Plummet Amid AI Spending and China Concerns

Semiconductor shares plunged globally as South Korea and Europe saw significant declines, casting doubt on the sustainability of the artificial intelligence boom. US technology stocks, mirroring the broader rout in global chip shares. This downturn was fueled by concerns over AI spending and increased competition from China, leading to a for emerging-market stocks. S&P 500 futures remained muted as chip stocks extended their declines, with traders awaiting key tech earnings and the Federal Reserve's interest-rate decision. The cost to protect Nvidia debt against default surged the most on record, highlighting growing anxieties in the AI sector. GAM’s Paul Markham suggested the global chip selloff is not yet a buying opportunity, citing crowded investor positioning. Kioxia Holdings Corp. faces more as leveraged ETFs tracking the Japanese memory chipmaker's shares are set to list in the US.

Energy Markets React to Geopolitical Tensions and Supply Dynamics

OPEC+ plans pause after September, as delegates assess the impact of the Iran war on global supply. US drivers are feeling the pinch of a global diesel squeeze, with refining margins near a a record high, leading processors to. Tankers are diverting to Egypt as Houthi threats disrupt Red Sea trade, with empty supertankers heading to Sidi Kerir to collect Saudi crude. Oil prices tumbled as tensions between Iran and the US eased, with Brent crude falling 6% after escalating violence pushed prices over $100 a barrel. Treasuries strengthened and the dollar fell as President Trump indicated that talks with Iran were taking place. Satellite images showing smoke at Saudi oil facilities, though data offered few clues about production. Developing Asian nations are working to due to Middle East supply shocks.

Corporate Earnings and Outlooks Show Mixed Performance

Corning reported in the second quarter, driven by demand for its AI optical products. Sherwin-Williams lifted its outlook for the year, expecting mid- to high-single-digit sales growth. GSK launched a cost-saving plan targeting $2.52 billion in annual savings by 2029 to accelerate its drug pipeline and hit its 2031 sales target. Jet Blue Airways recorded a wider loss in the second quarter due to higher fuel costs, although this was partially offset by increased fares. Royal Caribbean Group as geopolitical uncertainty pressured bookings. Coca-Cola saw profit and sales rise on better concentrate sales, pricing, and product mix in the second quarter. PayPal lifted profitability, indicating its turnaround is progressing. Centene raised its 2026 outlook on profit and revenue growth, driven by strength in its core healthcare lines. Hilton Hotels raised its outlook on higher revenue and hotel rates, posting a second-quarter profit of $482 million. Unilever sales volumes, with World Cup promotions boosting sales in Latin America. Unilever Plc lifted its outlook after second-quarter sales rose more than expected, driven by emerging markets.

Global Economic and Political Landscape Faces Uncertainty

The state of play with the energy shock remains in a bad equilibrium, with demand and supply expected to stay off-balance. China's grip on electrification metals poses major risks for the green transition due to its supply-chain dominance. Italy approved a temporary tax cut on diesel fuel through August 6 as it seeks to cushion the impact of surging energy prices following the widening of the Middle East conflict. Singapore's central bank warned that uncertainty over sustaining massive AI investments is a key risk for global growth. The UK's economic vibe shift should not be underestimated, despite ongoing challenges. The Democratic Party faces debt and disarray, while wildfires forced mass evacuations in Europe.

Company News and Dealmaking Activity

Boeing pouring resources to speed up production of Air Force One and commercial jets, with significant investment aimed at ensuring the presidential plane's 2028 delivery. Elevate Campuses Ltd. is preparing to launch its 25.55-billion rupee ($267 initial public offering as early as August. Ares Management has held talks to buy Leonard Green & Partners in a deal that would more than quadruple the size of its PE business. KKR and Blackstone for the management of Kuwait’s oil sector. TPG Inc. is in exclusive talks to acquire Macquarie Group Ltd.-backed Netrality Data Centers for up to $3 billion according to people familiar with the matter.

Financial Market Trends and Investor Sentiment

Treasuries set third as oil drops on Iran talks, buoyed by optimism that US-Iran talks will lead to the resumption of tanker traffic. Citigroup Inc.'s traders are betting the Federal Reserve this week. Man Group reported $2.3 billion of net inflows into its absolute return division, and its assets. Investors are "far too complacent" on Additional Tier 1 bonds, the riskiest type of bank debt, with spreads appearing too tight, according to Man Group investors. Fund managers including Invesco Ltd. and Rathbones Asset Management have soured on UK government debt this year due to worries about inflation and political instability and UK exposure.

Other Notable Business and Market Developments

GSK shutting historic as it announces a £1.9 billion cost-saving drive, hoping a new Cambridge site will bolster medicine pipelines. Mercedes-Benz cuts annual amid a slump in China, joining Volkswagen and BMW in warning about a tougher Chinese market. Barclays raised key after its second quarter was boosted by its global markets unit and investment banking fees, with quarterly profits rising 31% to £3.3 billion. Unite Group Plc is planning to sell as many as 20,000 student dorms as it reshapes its portfolio to focus on the UK’s top universities and pivots to top universities. The CME Group Inc. reported that its debut of 24/7 gold futures trading with deep liquidity.