Public Markets 3 Days

Last updated: August 4, 2026, 11:30 AM ET

Public Markets: Equities and Bonds

U.S. stocks neared record highs, with the S&P 500 trading close to its peak, as booming corporate profits overshadowed concerns about inflation and geopolitical tensions. The AI trade a significant driver of market gains, has entered a phase where the "kindness of strangers" is providing support, suggesting broader investor participation beyond the initial surge. Amazon.com Inc. surpassed $3 trillion in market value for the first time, joining an elite group of companies to reach this milestone, and contributing to the broader market rally. US stocks near a record high on the first trading day of the month, with investor attention shifting to a heavy schedule of upcoming earnings reports.

yields fell as geopolitical fears eased, particularly concerning the Strait of Hormuz, following hopes for a diplomatic solution to reopen the vital shipping waterway. Falling oil prices, influenced by potential deals for the Strait of Hormuz, also contributed to the decline in Treasury yields. dealers anticipate that the U.S. Treasury will need to increase the sizes of some of its fixed-rate borrowing programs next year, though they do not expect an immediate signal of this shift. Treasuries began the week on an optimistic note, supported by tumbling oil prices and assurances that tens of billions of dollars in Japanese currency interventions would not be funded by sales of U.S. debt. The U.S. Treasury’s liquidity facility, which Japan can utilize to boost its yen, has the advantage of protecting the U.S. bond market from excessive sales.

Commodities and Energy

Oil futures a significant drop of 4% as Brent crude declined, following reports of an imminent deal between Iranian and Omani negotiators for a temporary arrangement to allow shipping through the Strait of Hormuz. This potential reopening of the Strait of Hormuz led to a decrease in Treasury yields and a drop in oil prices. Saudi Aramco reported a substantial 33% surge in quarterly profits, driven by higher oil prices, despite disruptions caused by the Iran war, utilizing pipelines to circumvent issues in the Strait of Hormuz. The U.S. dollar strengthened as oil prices increased, particularly after Iran indicated no planned talks with the U.S. Emerging market stocks and currencies remained under pressure as the lack of progress in U.S.-Iran talks pushed oil prices back above $86 a barrel.

U.S. natural futures experienced fluctuations, following a pattern of rising one day and falling the next, as robust production and subdued liquefied natural gas feedgas demand offset high seasonal power-sector demand. Europe's energy system is strained by a hot, dry summer, with extreme temperatures and low river levels curbing power supplies. The European Union is optimistic about winter liquefied natural gas imports, aiming to compensate for inventories that are at their lowest level in nearly two decades for this time of year, exacerbated by the Iran war. Russia's oil have seen a slip as a lull in drone strikes has boosted refining capacity, allowing plants to process more crude and ship less abroad.

International Markets and Currencies

Bank Japan is the sole entity capable of arresting the yen's decline, as higher interest rates are required to address the growing yield gap with the United States. Investors remain about the yen even after the joint U.S. and Japanese intervention, which has seen the currency rally. Treasury Secretary Scott Bessent stated that the yen's weakness contributes to Japan's inflation problem and increases the risk of broader depreciation in Asian currencies, reiterating U.S. support for Japan's currency. U.S. Japan's coordinated intervention in currency markets highlights a new era of U.S. "currency activism," demonstrating a readiness to counter trades that go against U.S. interests.

Taiwanese conglomerate Group Holdings Co. is reportedly favoring London for the listing of its European operations, making it the latest overseas entity drawn to the UK's capital markets. India has expanded its share sale in state-run insurance giant LIC to raise $3.3 billion due to strong demand, bolstering public finances amidst challenges from high interest rates. India's new closing auction system for derivatives has raised concerns, as the benchmark NSE Nifty 50 Index again moved sharply during the expiry. A panel of Indian lawmakers has proposed rules to allow companies registered overseas to transfer their registration to an International Financial Services Centre in India, aiming to attract foreign investment.

Corporate and Deal News

AbbVie Inc. seeking to raise at least $8 billion through an investment-grade bond offering to finance a portion of its acquisition of Apogee Therapeutics Inc. Bridgepoint Group is exploring a deal to sell over €1 billion ($1.15 of private credit stakes in a secondaries transaction. Italy's Nextalia Management has raised over €1.1 billion ($1.3 for its second private equity strategy fund, focusing on opportunities within its home market. Apollo Global Management reported a record in fee-related revenue, driven by its dealmaking activity, as it competes to be one of Wall Street's largest lenders. Apollo has stated it "prudently delayed" sales amid an evolving exit environment, missing out on significant asset sales that have benefited rivals.

The Los Angeles Department of Water and Power plans to sell $400 million in water revenue bonds to finance extensive infrastructure upgrades, facing renewed scrutiny after a recent pipe burst. A historic private school in Pittsburgh is seeking to borrow $30 million in the municipal bond market for campus renovations as it competes for students. Segro has accepted a £14 billion takeover offer from U.S. rival Prologis, adding to a series of acquisitions of London-listed companies. Easy Jet has extended Castlelake's deadline to improve its bid beyond Apollo's $7.6 billion offer.

Technology and AI

The AI trade is now characterized by broader investor involvement, moving beyond initial speculative enthusiasm. Developing countries may face less risk from AI than richer nations, as workers in poorer economies are more likely to benefit from the technology than be displaced by it, according to the World Bank. White House has faced internal debate and shifts in approach regarding the regulation of "open source" AI models, which are favored by companies in China. OpenAI is engaged in a legal dispute with Apple over trade secrets, following an AI partnership that has soured. BlackRock Inc. an overweight position in artificial intelligence despite increasing risks from competition and higher interest rates.

Semiconductor reported higher profit and revenue, driven by its growing business in AI data centers, with second-quarter net income rising to $226.8 million from $170.3 million a year earlier. Palantir Technologies Inc. shareholders have seen the stock lose over 40% of its value since its peak in November, indicating a challenging period for the company caught between its AI and software businesses. Google temporarily the creation of AI deepfake maps through a new Google Earth tool, but quickly removed it due to backlash and concerns about disinformation risks.

Other Market Developments

SpaceX's first earnings report, following its initial public offering, is highly anticipated on Wall Street as investors look for reasons to buy the stock. The second stage of a SpaceX Falcon 9 rocket is expected to collide with the moon early Wednesday morning, after being launched last year to send two private landers to the moon. Uber's legal strategy in sexual assault lawsuits has been described as aggressive, with lawyers reportedly employing tactics like questioning "What were you wearing?" despite the company's promise to handle claims in a way that best serves survivors. reported lower profit and missed revenue estimates due to a social media disruption in China concerning alleged quality issues with Huggies diapers, which the company denies.

UBS Financial Services Inc. has agreed to pay $125 million in fines to settle allegations of willfully and repeatedly violating anti-money laundering regulations. Wells Fargo set to roll out tokenized deposits for its corporate clients, embracing blockchain technology to enhance payment and transfer efficiency. India's state-run insurance giant LIC's share sale was expanded to raise $3.3 billion due to strong demand, bolstering public finances. India is considering widening tax exemptions to attract foreign companies like Apple, aiming to extend tax holidays for foreign tech firms that supply equipment to local contract manufacturers.