Public Markets 3 Days

Last updated: July 28, 2026, 11:30 PM ET

Global Markets React to Geopolitical Tensions and AI Boom

Oil prices rebounded amid renewed supply-disruption concerns spurred by fighting in the Middle East, with crude climbing and Treasuries falling. Fresh fighting erupted in the Middle East, ending several days of calm and renewing concerns over disruptions to energy supplies. U.S. natural gas futures for a fourth consecutive session as solid production and inventories weighed against weather-driven demand. Bond traders remained on edge ahead of the Federal Reserve’s policy decision, with flaring Middle East tensions fueling volatility in oil prices.

Asian Markets See Mixed Performance Amid Economic Data and Tech Sector Volatility

Japanese stocks rose modestly in early trade, recovering from recent selloffs in technology stocks. Japanese government bond futures edged higher amid mixed signals in early Tokyo trade. Hong Kong’s imports of gold surged to the highest level since late 2014 in June, driven by preparations for a new clearing system and solid demand from mainland China. Singapore stocks are on track for their best month in nearly six years, supported by a rally in banking shares. The Nifty IT Index’s correlation with the Philadelphia Semiconductor Index has fallen to its lowest level since 2018, as Indian IT stocks while global AI trade falters.

AI and Tech Sector Face Scrutiny Amid Earnings and Investment Shifts

Chip stocks as signs of progress in China’s advanced chipmaking compounded worries about the sustainability of the artificial intelligence spending boom. The cost of protecting Nvidia debt against default surged by the most on record as AI greed turns into fear. SK Hynix profits soared sixfold on the AI boom, with the second-largest memory-chip maker securing multiyear contracts with about 10 customers. Teradyne reported higher second-quarter revenue and profit as the artificial intelligence boom fueled growth in its business providing testing equipment for semiconductors. NXP Semiconductors posted a profit of $767 million, driven by growth across all end markets and regions, with particular strength among software-defined vehicle and physical AI customers.

Corporate Earnings and Dealmaking Highlight Sector Strength and Challenges

Rio Tinto in first-half profit and raised its interim dividend, fueled by higher commodity prices, increased production, and productivity gains. The miner hailed the outcome of cost cuts and stated that data center investments will raise the need for commodities. Bloom Energy Corp. jumped after the fuel-cell maker posted earnings that were more than double expectations and raised full-year guidance. Ford Motor to between $10 billion and $11 billion, expecting auto prices to rise around 0.5%. Mondelez International lifted its outlook on higher quarterly sales, with the Latin America market driving strength.

Financial Sector Navigates Regulatory Scrutiny and Market Pressures

Morgan Stanley mortgage employees face backlash when questioning or rejecting loans for wealthy clients, though the bank maintains it has not compromised underwriting standards. S&P Global Inc. posted quarterly that fell short of analysts’ average estimates, impacted by factors including the US-Iran War affecting pricing on energy data contracts. Johnson & Johnson settled a US talcum powder lawsuit with a $5.5 billion payout to approximately 76,000 plaintiffs. EY was for breaching standards on the Made.com audit, with the regulator citing reliance on the furniture retailer’s forecasts.

US Economy and Policy Under Scrutiny Amid Inflation and Fed Decisions

Australia’s core inflation came in cooler than anticipated last quarter, prompting money markets to slash bets on another interest-rate increase this year. Gold edged lower amid a hawkish monetary policy backdrop ahead of the Federal Reserve’s interest-rate decision. Traders are on edge as they price in roughly a one-in-three chance of a Federal Reserve interest rate hike. Meredith Whitney, the former bank analyst, warned that a US "reckoning" is coming in the fourth quarter as one-time economic boosts fade.

Real Estate and Infrastructure Projects Secure Significant Financing

BXP Inc. has secured a $1.2 billion loan to construct a 46-story office tower connected to New York City’s Grand Central Terminal. Investors are snapping up bundles of properties as housebuilders offer discounts, while cautious consumers remain on the sidelines.

Automotive Sector Adapts to Shifting Demand and Pricing Strategies

Ford's second-quarter performance was bolstered by sales of high-margin off-road vehicles, despite overall sales and revenue being down. The automaker to between $10 billion and $11 billion, expecting auto prices to rise around 0.5%.