Public Markets 3 Days

Last updated: August 5, 2026, 5:30 AM ET

Global Equities Rally on Hormuz Reopening Hopes

Global stock markets continued their rally, with sentiment boosted by the prospect of a U.S.-Iran agreement to reopen the Strait of Hormuz. The S&P 500 looked poised to extend its 1,600-point rally of the past two days. US stocks headed for a record as hopes rose for a U.S.-Iran deal to open the Strait of Hormuz, while investors renewed bets on the artificial intelligence trade, driving gains in chipmakers. European stocks hit a record high, boosted by another strong set of earnings, a rally in mining shares and optimism that a Middle East truce will be reached soon. European stocks tested new highs, with consumer products and retail shares among the biggest gainers, as signs of easing tensions between the US and Iran pushed oil prices lower. Australia’s stock benchmark climbed to a record on easing concerns over the US-Iran conflict and supportive signals in the domestic economy. Japanese stocks were higher thanks to renewed hopes for a U.S.-Iran deal to reopen the Strait of Hormuz.

AI and Chipmakers Drive Market Performance

Shares in Chinese AI darlings slid on fears of a U.S. ban, with Zhongji Innolight and Eoptolink hit by reports that Washington is drafting a ban on optical transceivers. AMD shares fell 8% as Elon Musk committed to Nvidia chips for SpaceX. The company’s sales to data centers doubled in the latest quarter, but its revenue only narrowly beat analysts’ estimates. Chipmaker Infineon forecasts strong revenue growth on booming AI demand, expecting revenue of roughly $18.80 billion for the current fiscal year as the race to build AI infrastructure continues to fuel red-hot semiconductor demand. Shares of SK Hynix Inc. advanced, lifted by an overnight rally in US chipmakers and speculation that the Korean firm may soon unveil buybacks and other details of a broader shareholder return plan. BlackRock Inc. remains overweight the artificial intelligence theme despite rising risks from tougher competition and higher interest rates, according to Wei Li, the firm’s global chief investment strategist.

Corporate Earnings and Dealmaking

SpaceX, in First Earnings After IPO, Reported Soaring AI Spending, with Elon Musk’s rocket company stating its capital expenditures jumped nearly seven times from a year ago, while revenue also rose. SpaceX shares slid in pre-market trading even as the group said its quarterly revenues nearly doubled. What has happened to the finances of Elon Musk’s rocket maker over the past three months is pretty irrelevant. Siemens Energy orders reached record highs on U.S. data-center demand, with shares rising around 4% in early morning European trade as demand for U.S. data centers and surging global demand for electricity led to record high orders in its fiscal third quarter. Siemens Energy profit tripled as orders hit record highs, and it expects to achieve the higher end of its fiscal-year profit margin guidance, which it said in May would be between 10% and 12%. Glencore Profit Jumps on Trading Boom and Record Copper, after a surge in the price of its most important commodities and its trading unit had one of its best ever periods as the Iran war sent energy prices soaring. Glencore plans a secondary listing in Australia, as the miner has long complained its London shares are undervalued. Glencore Plc said it has taken a provision on its exposure to iron ore trader Radiant World and confirmed it has stopped doing any new business with the firm. Disney to Sell Its Stake in A+E Global Media to Hearst for About $1.2 Billion, a deal that will give Hearst full ownership of prominent brands such as Lifetime and The History Channel.

Economic Indicators and Central Bank Watch

Eurozone government bond yields opened lower amid optimism about the reopening of the Strait of Hormuz. Gold rose in early Asian trade as markets continued to weigh the conflicting rhetoric between the U.S. and Iran. Gold jumped gaining for a third day as the prospect of an interim deal to reopen the Strait of Hormuz eased concerns about the outlook for inflation and reduced the odds of the Federal Reserve raising rates. Gold futures finished higher for the day, as the latest JOLTS report showed the number of job openings little changed in June. Recent intervention has helped strengthen the yen, but a more durable reversal likely hinges on the Bank of Japan bringing forward its rate-hiking cycle, according to T. Rowe Price. The case for active quantitative tightening is getting weaker. China sold long-dated yuan-denominated sovereign bonds in Hong Kong at record-low yields, underscoring strong demand from global investors for the offshore issuance. China courts global investors with bond market tweaks, and building out market infrastructure is welcome, but the country’s economic challenges could remain a deterrent.

Energy and Commodities Markets

Oil futures slipped as OPEC+ signaled output increases. Oil erased a decline as Yemen’s Houthi militant group issued a fresh threat against Middle East shipping, tempering optimism over US-Iran talks. Venezuela oil flows dropped as the Iran war pause cooled Indian appetite, with oil exports from Venezuela plunging in July due to weaker demand from India after a pause in the Iran war unlocked Middle Eastern barrels trapped in the Persian Gulf. US copper trades near record on tariff risks and Hormuz speculation, as copper futures in New York traded just short of an all-time high, as investors awaited a decision on US tariffs, while also tracking a push to reopen the Strait of Hormuz that lifted demand for risk assets. Copper advanced to its highest level since mid-May, topping $14,000 a ton in London, as traders monitored ballooning volumes held in the US ahead of an expected decision on an import tariff by President Trump. Copper is pouring into the US at the fastest rate in at least 12 years as traders position ahead of President Donald Trump’s decision on tariffs on refined imports.

Automotive and Transportation Sector

Honda Doubles Profit, Boosts Guidance on Weaker Yen, with the Japanese automaker aiming to improve its hybrid EV offerings to shore up its car business’s profitability. Honda raised its outlook 30% as a weak yen and U.S. demand for hybrids lifted quarterly results to a record. European carmakers are turning to Chinese rivals to fill factory floors, as the second in a series on Chinese auto companies looks at the European industry’s struggle to keep its plants alive. Schaeffler AG plans to cut its German workforce through an expanded phased-retirement program as weak automotive demand continues to pressure the supplier. General Motors, China’s SAIC are extending their joint venture partnership for 20 years, with the partnership planning to launch at least 30 new-energy vehicles by 2030 and deploy tech solutions developed in China for the Chinese market.

Retail and Consumer Goods Performance

Heineken remains upbeat for the full year after volumes picked up pace despite Americas weakness, as the recovery in sales volumes adds to signs that new markets and a focus on more premium labels are helping brewers out of a lengthy slump. Coca-Cola HBC's net profit rose on higher volumes, with the Coca-Cola Co. bottler stating revenue per case rose and that earnings were boosted by growth in both its sparkling and energy segments. Next Plc raised its outlook for the third time this fiscal year, driving its shares to a record after sales surged in the second quarter due to warm UK weather and pent-up demand in the Middle East and other regions. Huggies stumbled in China after a social-media firestorm, with a state-run newspaper reporting the diapers tested positive for a substance called formamide, while Huggies maker Kimberly-Clark said the findings are false. John Lewis chair warns of a profit squeeze as trading conditions worsen, with Jason Tarry telling staff the department store chain is heading into a period of falling sales and rising costs.

Legal and Regulatory Developments

A judge blasted the administration’s request for a dismissal in the Oath Keepers case, saying it bestowed “unearned grace” on the defendants “by wiping their records clean.” The FAA is investigating a Marine One safety incident in Washington, where the president’s helicopter took off despite commercial traffic flying at Reagan National Airport. UBS was fined $125 million over lax money laundering controls, as the Swiss bank failed to implement adequate curbs despite previous sanction by U.S. regulators. At least 17 people were killed in Russia’s deadly missile attack on Kyiv, officials said, as the country runs desperately low on interceptor missiles that could fend off Russian bombardments.

Financial Services and Investment

India raised $40 billion from its diaspora to support the sagging rupee, as the central bank’s rare push to repatriate savings has drawn stronger-than-expected inflows. Adnoc Distribution reported a sharp jump in quarterly profit as higher fuel sales, inventory gains, and stronger margins lifted earnings. Apollo Global Management reported record revenue from fees as it vies to be one of Wall Street’s largest lenders. BlackRock jostles rivals like Apollo in a bid for Mexican projects, and from its perch in one of Mexico City’s priciest office towers, overlooking the capital’s sprawling Chapultepec Park, BlackRock Inc. has its sights set on the country’s buildout. Vietnam’s Techcombank is seeking a $1 billion loan for regular business operations.

Other Market News

At least 17 people were killed in a Russian missile attack on Kyiv, officials said, as Ukraine runs desperately low on interceptor missiles that could fend off Russian bombardments. The U.S. Treasury Department is preparing to issue guidance on how companies can claim tax credits for electric vehicles under the Inflation Reduction Act. The Trump White House is readying an AI framework to review security risks, with the voluntary review process covering closed-source artificial intelligence models but excluding those that publish the underlying code. A key options trade particularly popular in India to bet on volatility on the day equity derivatives expire showed an unusual pattern on Tuesday, highlighting a potential trading opportunity as markets remain uncertain.