Public Markets 3 Days

Last updated: August 3, 2026, 8:30 AM ET

Middle East Diplomacy Boosts Markets, Oil Dives

U.S. stock futures climbed into the first trading day of the month as attention turned to this week’s heavy slate of earnings reports. Bullish investors are out in force on Monday despite more mixed messages about potential U.S.-Iran peace talks. President Trump cited progress in the negotiations when canceling a threatened attack on Iran over the weekend. The markets’ moves were the first since President Trump said he had halted a planned U.S. assault on Iran. U.S. stocks were on track to extend Friday’s rally as President Trump said he had canceled planned strikes on Iran, adding that peace talks would resume Monday afternoon. Oil prices tumbled after President Trump held off fresh attacks on Iran and said the U.S. would engage in talks beginning Monday afternoon. Treasury yields fell in European trade as President Trump’s decision to resume diplomatic talks with Iran caused oil prices to drop, easing inflation worries. Gold prices edge higher as renewed Middle East diplomacy pushed oil prices lower. European energy stocks opened lower on slumping oil prices as President Trump prioritizes diplomacy and says new talks with Iran will begin Monday.

Yen Intervention and Dollar Weakness

The dollar extended its slide on Monday as a joint US-Japan intervention to support the yen added to losses triggered by last week’s Federal Reserve meeting. The U.S. and Japan are seeking to contain tremors that could be triggered by a cratering Japanese currency. U.S. Treasury yields and the dollar fell in European trade on reduced demand for safe-haven assets, and also following U.S.-Japanese coordinated currency intervention to firm the yen. The yen’s weakness has become a growing issue for Japan’s policymakers, given its role in driving up import prices and household living costs. It’s also a worry for the US. Treasury Secretary Scott Bessent’s championing of a Federal Reserve facility Japan can use to boost the yen comes with the benefit of protecting the US bond market from excess sales. Treasuries are starting the week on an optimistic note, buoyed by tumbling oil prices and assurances that tens of billions of dollars in Japanese currency interventions won’t be funded from sales of U.S. Treasuries. A puzzling intervention by the U.S. and Japan occurred in the yen market.

Corporate Deals and Financial Restructuring

Investment firm KKR has struck a deal to acquire medical-device outsourcing company Integer Holdings for about $4.3 billion in cash. Hughes Network Systems, owned by Charlie Ergen’s Echo Star, filed for Chapter 11 bankruptcy on Sunday. Hughes Satellite Systems Corp. filed for Chapter 11 bankruptcy protection on Sunday, saying intensifying competition was undermining its core broadband business. Italy’s Prysmian SpA agreed to buy electrical parts manufacturer Atkore Inc. in an all-cash deal, extending a US growth drive focused on the data-center buildout. Atkore shareholders will receive $95 a share in cash for the $3.8 billion deal, including debt. Japan’s Orix Corp. has agreed to buy Aer Fin Ltd., a UK-based airplane parts company, in a deal worth about ¥100 billion ($640 including debt, people familiar with the matter said. Some of the historic family owners of Anheuser-Busch InBev sold a €731 million ($843 stake in the world’s largest brewer, after its shares surged at the start of this year.

Market Dynamics and Sector Performance

Momentum-style equity investing is poised to rebound from a sharp retreat as sectors with strong earnings replace chip stocks in leading the market’s gains, Morgan Stanley strategist Michael Wilson said. It’s been a sobering stretch for Palantir Technologies Inc. shareholders, who have watched their once high-flying positions lose more than 40% of their value since the stock hit a peak in November. Caterpillar Inc.’s stock is limping into the earnings report after losing nearly a quarter of its value, setting the results up as a test for investors to see if enthusiasm about the company being an AI beneficiary will continue. South Korean stocks slipped, as heavyweight chipmakers faced selloffs after Friday’s record gains while investors unwound leverage-backed trades. Emerging-market equities fell for the first time in three days, led down by South Korean chipmakers unwinding some of the record gains they made on Friday. India’s new system to discover end-of-day market prices got off to a confusing start, with traders trying to make sense of a spike in the NSE Nifty 50 Index stemming from the shift. India’s largest stock exchange was severely hit by the central bank’s tighter funding rules implemented last month, with spending on derivatives slumping to a 17-month low.

Energy and Commodities

Hedge funds boosted bullish wagers on US oil at the fastest pace since March as supply disruptions from Iran to the Red and Black Seas are set to once again boost demand for American crude. Oil prices plummeted as investors digest a pause in fighting in the Iran war. Sherwin-Williams and the brewer of Samuel Adams are among those facing higher commodity and freight costs due to the Iran war. Clarkson Plc expects its full year performance to be “materially ahead of market expectations” after the shipbroker delivered a record first-half performance boosted by “exceptional volatility” caused by disruptions in the Strait of Hormuz.

Real Estate and Infrastructure

A $506 million bet on thousands of New York rent-stabilized apartments has already soured for bond investors. Mayor Zohran Mamdani’s rent freeze threatens to make the situation worse for these investments. BlackRock Inc. has its sights set on Mexico’s infrastructure buildout from its offices in Mexico City. Base Power co-founded by Michael Dell’s son, lands a $13 billion valuation as electricity demand and battery storage are booming.

Global Economic Trends and Policy

China’s manufacturing activity slowed in July for export-oriented firms, according to a private survey, in line with an official gauge. Pakistan’s inflation eased last month, though policymakers remain wary that higher energy costs could reignite price pressures. 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. A dispute over a chapter in a Democratic Party autopsy report between the author and the Democratic National Committee has added to the party’s turmoil as it tries to look forward.

Technology and AI Sector

It’s been a sobering stretch for Palantir Technologies Inc. shareholders, who have watched their once high-flying positions lose more than 40% of their value since the stock hit a peak in November. NHS England will revise its Palantir platform data after staff concerns, as scrutiny grows over the US tech company’s contract. Bets on consumer chatbots and flashy side projects overshadowed an AI coding opportunity, which rival Anthropic used to capture the lead, according to an assessment of OpenAI's strategy. Amazon has completed a $50 billion investment in OpenAI, giving the e-commerce giant roughly a 5% stake in the AI lab after an equity deal. A new field of “tokenomics” has emerged to measure the return on all the money companies are pouring into artificial intelligence.

Consumer and Retail

Marriott International said the conflict in Iran put a significant damper on second-quarter sales. Manila Electric Co., the Philippines’ largest power distributor, was ordered by the regulator to refund 9.5 billion pesos ($156 , representing excess charges to customers. Retailers are investing in ‘preloved’ apparel drops, partly to offset the environmental cost of churning out a seemingly endless array of styles.