Last updated: August 5, 2026, 8:30 AM ET
Tech Sector Surges on AI Optimism, Earnings Strength
Futures climbed on Wednesday as the latest batch of earnings pointed to strong demand for, and spending on, artificial intelligence. A dramatic turnaround in technology stocks has powered a $3.5 trillion increase in the Nasdaq 100’s market capitalization in just four days, driven by strong earnings that have emboldened investors. Sentiment has turned around completely from last month, with tech euphoria returning. Chip maker forecast 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. ON Semiconductor reported higher profit and revenue on its growing AI data center business, with second-quarter net income at $226.8 million, up from $170.3 million a year earlier. Siemens Energy record high orders 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’s 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%. Siemens Energy’s sees a solid outlook on broad electrification, reassuring investors that demand for gas turbines will remain strong into next year, pointing to power-hungry data centers as only one among a range of drivers in the global market. BlackRock remains overweight the artificial intelligence theme despite rising risks from tougher competition and higher interest rates. The AI boom is “trickling down” to the broader economy, according to Wells Fargo & Co., which says that’s poised to push up industrial stocks.
Corporate Earnings and Outlooks Drive Market Movements
Kraft Heinz its sales outlook as it aims to mitigate higher supply costs by raising prices, despite lower profit and sales in the second quarter. Shopify posted a surge in second-quarter profit, driven by gains across both its subscription software and merchant services units. Thomson Reuters bumped up its revenue targets for the year after logging double-digit growth across its three big business segments in the latest quarter. SharkNinja raised its full-year outlook after second-quarter sales rose on strong demand across its product lineup, with growth led by cooking appliances, beauty products and international markets. Eli Lilly higher net income and revenue in the recent quarter, fueled by continued surging demand for its GLP-1 weight-loss drugs. CVS Health lifted its full-year outlook and reported a nearly threefold increase in its second-quarter profit, as it announced a revamp of its weight management program through a partnership with Eli Lilly. Next Plc 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. The U.K. retailer Next now targets $1.67 billion in pretax profit as its stock has risen 19% over the year to date. Coca-Cola HBC’s net profit rose on higher volumes, with revenue per case increasing and earnings boosted by growth in both its sparkling and energy segments. Heineken is upbeat for the full year after volumes picked up pace, despite weakness in the Americas, adding to signs that new markets and a focus on more premium labels are helping brewers out of a lengthy slump. Adnoc Distribution a sharp jump in quarterly profit as higher fuel sales, inventory gains, and stronger margins lifted earnings. Honda doubled profit and boosted guidance on a weaker yen, with the Japanese automaker aiming to improve its hybrid EV offerings to shore up its car business’s profitability. Honda Motor its profit outlook after the motorcycle business, a weak yen, and U.S. demand for hybrids lifted quarterly results to a record. Wynn Resorts’ revenue rose on demand from wealthy customers, with its profit coming in at $140.1 million, compared with a profit of $66.2 million a year earlier. Disney’s third-quarter increased 7% to $25.2 billion, driven by growth from the company’s experiences unit, with theme parks and ‘Toy Story 5’ boosting results. Disney’s domestic and cruises revenue rose 11 percent in the latest quarter, while Comcast’s Universal Parks dipped.
Market Talk and Sector Insights
The S&P 500 is poised for another record as the AI spending narrative holds, with futures climbing on Wednesday as the latest batch of earnings pointed to strong demand for, and spending on, artificial intelligence. SpaceX reported higher-than-expected AI-related outlays, and its stock slid postmarket after its first earnings release. SpaceX needs make its bigger rockets work, as none of the company’s most ambitious plans are possible without the success of its Starship rockets. Investors are watching SpaceX closely following its first earnings release after its record initial public offering. semiconductor index fell into a bear market despite “unprecedented” profit increases, even as big profits aren’t enough to keep chip investors happy. Europe’s top financial regulator is changing its rules around information sharing tied to initial public offerings, as London seeks to become a more attractive listing destination. European stock rose at the open, extending a raft of record highs, with the Stoxx 600 index up and industrial and retail stocks gaining. Australia’s stock climbed to a record on easing concerns over the US-Iran conflict and supportive signals in the domestic economy. Ken Griffin’s flagship fund Citadel surged 6% after buying billions of dollars of AI stocks from Leopold Aschenbrenner’s firm, and this purchase is already paying off, with the firm gaining about 14% in its stock-focused hedge fund in July. Carlyle Group its highest distributable earnings in nearly four years as the buyout firm continued to have record capital at its disposal to invest. The U.K. chemical company closure rate doubled between 2020 and 2025, impacting the UK’s ability to make medicines and missiles.
Geopolitical Tensions and Economic Policy
Treasury yields declined in European trade as investors remained optimistic about a potential deal that could lead to the reopening of the Strait of Hormuz. Gold prices above $4,200 as signs of diplomatic progress in the Middle East temper fears over inflation and interest-rate hikes. The dollar traded steady as uncertainty over the Iran war remained elevated. Sailors working in the Strait of Hormuz are caught in the crossfire of the Iran war, with thousands of civilian workers stranded on ships at risk of attack by Iran. 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 after the Iran war impacted supply. Russia’s oil exports slipped as a lull in drone strikes boosted refining, allowing plants to process more crude and ship less abroad. The U.S. Department of Defense has canceled a tender to purchase lithium for its strategic stockpiles, in another apparent sign of the challenges it faces in trying to bolster supplies of critical minerals. Washington announced a year-long ban on overseas sales of scrap tungsten and ‘black mass.’ Tungsten mining helps explain the state of worldwide conflict. U.S. relies on family caregivers, and millions of them are children. Democrats want to tax billionaires but can’t agree on how, with the party remaining far from united on the issue.
Global Finance and Emerging Markets
Kazakhstan plans to return to the yuan debt market this year as Central Asia’s largest oil producer seeks to tap cheaper financing from China. China sold yuan-denominated sovereign bonds in Hong Kong at record-low yields, underscoring strong demand from global investors for the offshore issuance. India is not considering an early closure of a program aimed at attracting deposits from the country’s 35-million-strong diaspora, with the central bank expecting robust inflows until the window shuts. raised $40 billion from its diaspora to support the sagging rupee, with the central bank’s rare push to repatriate savings drawing stronger than expected inflows. India expanded the size of its share sale in state-run insurance giant Life Insurance Corp. to raise $3.3 billion after the base offer was oversubscribed, bolstering public finances amid challenges posed by high inflation. investors largely stayed on the sidelines in India’s share sale in Life Insurance Corp., signaling uneven demand a day after strong bids from institutions led the government to increase the offer. Malaysia continues to attract strong foreign investor interest despite growing political uncertainty following a string of local election setbacks for Prime Minister Anwar Ibrahim’s coalition. Vietnam Technological Commercial JSB, known as Techcombank, is seeking a $1 billion loan for regular business operations, according to people familiar with the matter, in what would be one of the larger funding rounds in the region. Emerging-market carry are showing resilience even after joint U.S.-Japan currency intervention dented the appeal of this yen-funded strategy. The yen’s rally stalled Tuesday even as U.S. Treasury Secretary Scott Bessent pledged continued support for Japan following a historic joint intervention. The rally in the yen is set to bolster a number of other Asian currencies based on their relatively high correlations, according to Citigroup Inc. and Barclays Bank Plc.
Dealmaking and Investment Trends
Allianz SE to buy the asset management unit of Singapore’s United Overseas Bank Ltd., marking the German insurer’s second major deal in recent days as Chief Executive Officer Oliver Baete targets Asia. Apollo Global Management Inc. is investing $1.02 billion in a joint venture with Starwood Real Estate Income Trust, a commercial property vehicle known as SREIT that has struggled to provide liquidity. Cerberus Capital is looking to raise at least $4 billion for its latest supply-chain fund that backs investments critical to the defense industrial base. Glencore Plc reported a steep jump in profits 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 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. The miner Glencore plans a secondary listing in Australia, as it has long complained its London shares are undervalued. Uber pledges $10 billion to win the robotaxi race, with Chief Dara Khosrowshahi lauding strong bookings and record cash flow as the company seeks to fund its costly autonomous vehicle push. Wayve Uber won approval for supervised robotaxi rides in London, with Transport for London granting private-hire vehicle licenses to a number of Wayve’s autonomous vehicles, which will operate with a private-hire driver behind the wheel to take control when necessary. SoftBank-backed OfBusiness is considering reviving plans for an initial public offering that could raise as much as $800 million, according to people familiar with the matter. Mitsubishi UBE Corp. is planning to go public as soon as December, according to people familiar with the matter, five years after being formed through units of Japanese materials companies.
Automotive and Transportation Sector
General Motors and China’s SAIC are extending their joint venture partnership for 20 years, with plans to launch at least 30 new-energy vehicles by 2030 and deploy tech solutions developed in China for the Chinese market. Schaeffler AG to cut its German workforce through an expanded phased-retirement program as weak automotive demand continues to pressure the supplier. Nissan posted its first quarterly profit in two years and kept its outlook unchanged, even as it lowered its vehicle sales projection. Cathay Pacific its strongest first half since 2010 but flagged fuel risks, as increased passenger and cargo traffic more than offset a surge in fuel prices. Thai Airways mentioned in the latest Market Talks covering auto and transport.
Energy and Utilities
The Pacific island of Palau is fundraising for a pivot to clean energy. Seatrium, BP other energy and utilities companies are discussed in the latest Market Talks. Oil futures as OPEC+ signaled output increases. U.S. futures were higher, and oil held around $80 on hopes for an imminent Hormuz reopening.