Public Markets 3 Days

Last updated: August 4, 2026, 8:30 AM ET

US Markets and Corporate Earnings

U.S. stocks near a record as investors focused on corporate earnings after weeks of choppy trading spurred by concerns over tech valuations and the conflict in the Middle East. Booming corporate are driving the S&P 500 near another record, dampening concerns about the war, inflation, and more. U.S. stocks a record high amid a lull in the Iran war. The S&P 500 continues to hold near record highs as the AI trade falters and market gains broaden.

Caterpillar reported higher profit in the latest quarter as sales jumped, driven by continued demand for its construction equipment, as well as its engines and generators. Pfizer swung to a second-quarter loss but posted higher revenue, as market growth in its oncology business offset some declines in its Covid-19 products. Merck slashed its profit outlook for the year due to charges tied to its acquisition of cancer biotech company Terns Pharmaceuticals. DuPont de reported a higher profit in the second quarter as sales rose across the chemicals and materials company’s segments. Archer-Daniels-Midland Co. raised its 2026 profit outlook for a second time, as the crop trader increasingly looks to biofuels as a major driver of growth. Archer-Daniels-Midland once raised its full-year adjusted earnings outlook after the Trump administration issued new rules requiring gas and diesel to contain more biofuels.

McDonald’s U.S. slowed as consumers spend more cautiously, leading the fast-food giant to name a new president of its U.S. operations to revamp its outlets. The Golden Arches has been working to win back customers as Americans cut spending, especially lower-income consumers. Wayfair had a mixed second quarter, with its U.S. business growing while international sales fell, leading the company to swing to a loss. Huggies maker reported lower profit in its second quarter and revenue missed estimates, as allegations about the quality of diapers in the China market disrupted sales. Kimberly-Clark said findings from a state-run newspaper that its diapers tested positive for formamide are false. Fresenius Medical Care AG shares declined after the German company reported lackluster growth in dialysis, raising concern about its future prospects. Shares Fresenius Medical Care dropped, wiping out most of their gains since the start of the year, after the German dialysis specialist reported another decline in U.S. treatment volumes in the second quarter.

Global Markets and Economic Trends

indexes rose strongly after the opening bell, with defense and AI-related stocks gaining. Europe’s stock market is the only major region to have experienced a meaningful improvement in recent weeks, supported by fresh capital inflows and better-than-expected earnings. Europe Inc. delivering one of the strongest earnings scorecards in recent years, setting up regional stocks to scale fresh peaks as analysts turn even more optimistic about a broad range of sectors. European bonds are emerging as a safer choice for fund managers as they try to navigate an increasingly fraught global backdrop.

The European Union is optimistic that winter liquefied natural gas imports will help offset inventories that are at their lowest level for this time of year in almost two decades. Extreme temperatures and low river levels are curbing power supplies across Europe’s energy system. Drought conditions are also slowing shipping traffic in Europe.

Saudi Aramco a 33% profit surge, driven by higher oil prices, despite disruptions in the Strait of Hormuz, which were bypassed using pipelines. Saudi Aramco said attacks last month did not have a material impact on its operations, and the company is working to expand its oil export capacity. Higher oil propelled a quarterly earnings jump for Saudi Arabia’s energy giant, which used pipelines to work around disruptions in the Strait of Hormuz. Elevated crude lifted earnings for Saudi Aramco despite disruption in the Strait of Hormuz pushing sales volumes lower.

Oil prices with Brent crude up 1.3% and WTI up 0.6% after a selloff triggered by optimism that a Middle East deal was within reach. Oil futures slipped as OPEC+ signaled output increases, while gold held steady near $2,340/oz despite a weakening dollar. Oil prices causing the dollar to rise in European trade as Iran indicated there were no planned talks with the U.S. U.S. stock futures rose while oil edged higher in early European trade as investors awaited U.S. job openings data. Brent crude up but remained below $85 a barrel.

Financial Services and Technology

Wells Fargo is rolling out tokenized deposits for corporate clients, making it the latest bank to embrace blockchain to make payments and transfers faster and more efficient. Holdings Plc. sharply higher quarterly profit and plans a $1 billion share buyback, with pretax profit increasing across the bank’s four key segments. HSBC Holdings Plc.’s surge in shares to a record has raised the bar for the Asia-focused lender to deliver results that can help sustain the rally. Holdings Plc. Executive Officer Georges Elhedery said the lender will consider boosting its bonus pool for bankers if strong performance continues. UBS fined $125 million over alleged anti-money laundering failures.

Bridgepoint Group exploring a deal to sell more than €1 billion ($1.15 of private credit stakes in a secondaries transaction. Italy’s Nextalia Investment Management raised over €1.1 billion ($1.3 for its second private equity strategy fund, targeting opportunities in its home market. Private capital Apollo Global Management reported record revenue from fees as it vies to be one of Wall Street’s largest lenders. Apollo said it "prudently delayed" sales amid an evolving exit environment. KKR-Backed Infinx Pvt. is considering an initial public offering of as much as $300 million in India.

The Trump administration has struggled over how to approach “open source” artificial intelligence models, which are freely available to download and favored by Chinese companies. OpenAI has hit back at Apple over an "oddly personal" trade secrets fight, deepening a legal clash over an AI partnership for devices. forecasts greater demand from U.S. groups for its AI software, with American sales climbing 23% in the second quarter. BlackRock Inc. overweight the artificial intelligence theme despite rising risks from tougher competition and higher interest rates. brown bag AI lunches are over, signaling a shift in how companies approach artificial intelligence.

Other Market Developments

India’s first derivatives expiry under the new closing auction system did little to ease concerns about the new mechanism after the benchmark NSE Nifty 50 Index again moved sharply during the expiry. India plans to raise as much as $3.3 billion by selling a stake in state-run Life Insurance Corp., as the government seeks to bolster public finances strained by higher oil prices. A panel of Indian lawmakers has proposed allowing companies registered overseas to transfer their registration to an International Financial Services Centre in India.

New Delhi wants to extend tax holidays for foreign tech companies that supply equipment to local contract manufacturers. Zepto Ltd. a 68% cut to its valuation during its IPO roadshow last month, prompting the Indian rapid-commerce firm to delay its listing. Traders bet Reserve Bank of India will hold rates steady and that a cash boost will steepen the India yield curve.

BP intends to sell its Archaea biogas business as its oil trading and higher energy prices lifted profits. BP plans to sell its $4 billion U.S. biogas business as profits more than doubled. Lufthansa shares slid after a profit slump and more cautious guidance, expecting a drag from volatile jet fuel prices. Continental AG it is in the final stage of its strategic realignment and warned of a substantial increase in raw-material costs in the second half of the year.