Public Markets 3 Days

Last updated: August 1, 2026, 2:30 AM ET

Global Markets and Geopolitics

Oil futures significant gains, closing July with substantial increases as renewed Iranian attacks on shipping in the Strait of Hormuz fueled demand for American crude. funds boosted bullish wagers on U.S. oil at the fastest pace since March, anticipating further supply disruptions from Iran to the Red and Black Seas. Arabia’s quarterly fiscal deficit contracted by nearly 75%, benefiting from a spike in global oil prices, even as the Iran war shrank the economy. U.S. crude stockpiles fell more than expected, declining by 7.2 million barrels to 404.5 million barrels in the week ended July 24. U.S. natural futures, however, settled modestly lower, inching down 0.4% for a 16% monthly loss.

The U.S. Treasury undertook a historic intervention in the yen market, with the New York Fed selling euros to buy yen following speculation that Tokyo had intervened to support Japan’s currency. The dollar weakened against the yen as authorities signaled that an intervention to support the Japanese currency could be imminent, with the yen strengthening on these signs. Treasury yields mixed as markets received mixed signals from the Fed while the U.S.-Iran war heated up, with government borrowing costs hitting a two-decade high after a Fed rate decision. Persistent price are unsettling financial markets, with U.S. GDP growth slowing in the second quarter. pressures eased during a brief reprieve in the war with Iran, but the resumption of fighting suggests that inflation risks remain prevalent.

Corporate and Sector Performance

Microsoft made history, adding nearly half a trillion dollars to its value in a single day, the most by any stock. The company is increasing spending on AI as its profit jumps 31%, hoping aggressive investment translates into revenue. U.S. stocks after Microsoft's earnings, with the Nasdaq jumping 2.8% as its robust report restored momentum to the artificial-intelligence boom. Amazon’s surge Apple’s fall on latest earnings saw the Nasdaq composite climb, with Amazon's rise offsetting Apple's decline following its report of accelerating cloud-computing sales. U.S. stocks higher as Amazon kept the artificial-intelligence recovery rolling, despite Apple’s chip woes.

Macau’s gaming fell 8.4% in July, declining for a second consecutive month due to travel disruptions from Typhoon Noul and distractions from the World Cup. Indian firms preparing to raise prices on products from toothpaste to tires and paint ahead of the festival season, testing the inflation outlook as they plan for the second straight quarter of price hikes. India’s push to attract overseas capital has brought in more than $40 billion since June, boosting the RBI’s foreign-currency buffers as policymakers seek to stabilize the rupee amid rising crude prices. Sony boosted its outlook as its music and image-sensor businesses fueled profit growth, though its game division remained lackluster. Valero Energy that its earnings surged in the second quarter, thanks to sturdy fuel demand.

Technology and AI Developments

Amazon completed a $50 billion investment in OpenAI, acquiring roughly a 5% stake in the AI lab through an equity deal. Earth's AI tool was pulled after a spate of fake satellite images, raising concerns among security experts about generative tools eroding trust in satellite imagery used for verifying conflict damage. OpenAI lost AI crown as bets on consumer chatbots overshadowed the AI coding opportunity, a space rival Anthropic used to capture the lead. Apple's Siri an AI brain transplant, transforming the virtual assistant into a modern chatbot, though it remains imperfect. New regulations in the EU will require companies to label chatbots, deepfakes, and AI-generated marketing material.

age "The Magnificent 7" is over, with a cynic suggesting such monikers are created to hype markets, and the group is viewed as more dangerous than its name implies. Wall Street a tentative recovery from a wild week in the AI boom, revealing a historic rotation beneath the surface that exposed growing cracks in some of the grand assumptions. Investment giants shaking off upheaval in the private-credit industry, with KKR selling private-equity investments to boost profits and Blue Owl reporting that investor withdrawals had bottomed out. concentration risk of AI investment is not solely in equities, as bond markets are increasingly dominated by a bet on the same thesis as other asset classes.

Economic and Regulatory Landscape

New York avoided a debt downgrade by Fitch and Moody’s, though both warned the city must take steps to narrow projected deficits or risk a cut, despite the current boom. The Philippine government plans to change how it prices local-currency bonds by removing the impact of withholding tax, a shift that may affect some existing investors in the nation’s $230 billion market. muni market experienced its worst July since 2003, deviating from the typical summer pattern as rising benchmark Treasury yields and a flood of new issuance impacted the market. lawmakers unveiled legislation that would expand sales of higher-ethanol gasoline and provide exemptions from annual blending mandates for some small oil refineries. Grant Thornton to buy rival accountant CBIZ Inc. for $5 billion, marking one of the largest professional services acquisitions in recent years.

The possibility of consumers delegating financial tasks to agentic AI poses a new risk for lenders like Lloyds Bank, whose tech chief is questioned about being an AI contrarian. Higher earners being warned about a taper tax trap on pensions, with a surge in savers facing pension tax charges due to complex rules. The head of Alimentation Couche-Tard Inc. expects shareholder pressure on its $8.7 billion takeover offer for Żabka Group SA, but remains confident about securing the deal. The U.S. Treasury warned banks that it might intervene in the dollar-yen exchange rate, as the Japanese currency has weakened substantially against the U.S. currency in recent years to near multidecade lows. The head of the Coast Guard stated that decisive action would be taken to ensure brain injuries caused by rough seas are recognized, treated, and prevented.

Political and Social Developments

Tens of thousands of Moroccans surged into Ceuta, a Spanish territory bordering Morocco, on Thursday, with most leaving by Friday evening hungry and disappointed. surge migrants from Morocco into Ceuta is speculated to be due to lax Moroccan policing, attractive Spanish immigration policies, and misinformation from human traffickers, though experts state it is too early to know the definitive cause. Indian Prime Narendra Modi opposed punishment and court proceedings for young protesters, suggesting that "children make mistakes." India’s largest protests in years highlighted the growing frustrations of the country’s hundreds of millions of young people. Extreme heat have transformed the experience of summer across generations in Europe, with rising temperatures changing the feel of the season for today’s children compared to their parents and grandparents.

President Trump to withdraw Todd Blanche as his attorney general pick, dealing a blow to the nomination after fruitless negotiations with Republican Senators John Cornyn and Thom Tillis. Trump's comments cast further doubt on the confirmation of Todd Blanche as attorney general. President Trump without evidence that Minnesota’s Democratic government was behind a cyberattack on the state’s water systems, despite investigators believing Iran is likely responsible. Trump also plans for more strikes on Iran to spur surrender, while Spain regained control of Ceuta after migrants overran it. Trump administration plans to upend Head Start by deregulating it, seeking to strip away standards on health, literacy, and hygiene.