Public Markets 3 Days

Last updated: August 5, 2026, 11:30 PM ET

Global Markets React to Geopolitical Tensions and Economic Data

Gold advanced in early Asian trade, building on overnight gains driven by a softer dollar and lower Treasury yields. U.S. stocks finished mixed as optimism about the reopening of the Strait of Hormuz was tempered by continued volatility in artificial-intelligence wagers. The Nikkei fell 1.3%, dragged down by electronics stocks, following a sharp rise in the previous session led by artificial intelligence-related shares. Asian stocks were poised to ease as investors digested gains in technology shares and watched for fresh signs of progress toward a deal to reopen the Strait of Hormuz. U.S. Treasury yields edged slightly lower ahead of the Bureau of Labor Statistics employment report, following weaker-than-expected private payrolls data. The WSJ Dollar Index fell 0.16% to 96.01, marking its sixth decline in the past seven trading days. Comex gold settled 0.38% lower at $4033.70, down for a second consecutive session, while silver rose 0.1%, up for three of the past four sessions. Copper prices rose for the third consecutive trading session, ending at fresh records, with gold and silver prices also settling higher.

Corporate Earnings and Outlooks Show Mixed Performance

MetLife Inc.’s second-quarter earnings surpassed Wall Street’s expectations, bolstered by strong underwriting, volume growth, and the success of a five-year plan. Prudential Financial Inc. reported second-quarter results that beat analyst estimates, as revenue from its asset manager surged. DBS Group Ltd. delivered better-than-expected second-quarter profit, driven by a surge in wealth-led fee income, and raised its 2026 guidance. Wynn Resorts reported second-quarter profit of $140.1 million, compared with $66.2 million a year earlier, as revenue rose on demand from wealthy customers. Western Digital reported a more than elevenfold increase in its fourth-quarter profit, driven by continued strong demand for its memory technology. Motorola Solutions lifted its outlook, expecting full-year adjusted earnings between $17.62 and $17.72 a share on revenue of about $12.98 billion. News Corp saw revenue growth across all segments, with digital-only subscriptions to The Wall Street Journal averaging nearly 4.5 million in the quarter. EBay reported higher revenue of $3.13 billion and now expects gross merchandise volume to grow between 11.5% and 12.5% in 2026, as the Depop acquisition closed and revenue rose.

Technology and AI Sectors Face Volatility and Investment Shifts

SpaceX shares sank on the company's AI spending plans, with the Elon Musk-led rocket company spending $15.8 billion on AI projects in the second quarter and not planning to slow down. SpaceX stock dropped on ballooning AI bills, with Google reshuffling senior AI ranks and Shake Shack drawing an activist. Nasdaq fell after a morning rally, with the Nasdaq Composite retreating, while the Dow industrials advanced. Celestica Inc. is looking to raise $3 billion from selling new shares, joining a flurry of companies raising funds for data centers to power the artificial intelligence buildout. China's rapid progress in low-cost artificial intelligence is strengthening the investment case for the country's internet giants after years in the shadow of chipmakers, market participants say. A spate of well-known hedge funds reported steep losses in July as AI shares tumbled, most notably forcing the highly leveraged Situational Awareness to sell most of its stock portfolio at a deep discount. Palantir Technologies Inc. shareholders have watched their positions lose more than 40% of their value since the stock hit a peak in November, as the company is stuck in a worst-of-both-worlds bind with AI and software. Chip giant SK Hynix Inc. suffered its second short-lived share plunge in about a week, raising fresh questions about trading volatility on South Korea’s alternative stock exchange.

Economic Trends and Policy Debates Shape Market Sentiment

Traders in India are dialing back October rate-hike bets after dovish remarks from the Reserve Bank of India, with the earliest anticipated rate hike now in December. The Japanese yen will strengthen about 6% against the dollar by year-end following coordinated currency intervention, according to revised expectations from Bank of America Corp. Emerging-market carry trades are showing resilience even after joint U.S.-Japan currency intervention dented the appeal of this yen-funded strategy. The way Scott Bessent's yen trade is being conducted should raise concerns that the Federal Reserve is being drawn into easing monetary conditions. Global bond and currency investors are debating if it's time to dust off last year's "Sell America" trade after a flurry of economic-policy decisions out of Washington over the past two weeks. The U.S. suspended government activities in the Mexican state of Michoacan, affecting imports of avocados from the largest producing region in the country to the U.S. Ghana's central bank incurred losses of 22 billion cedis ($1.9 in 2025 under a domestic gold purchase program aimed at boosting the country’s foreign-exchange reserves.

Regulatory and Legal Developments Impact Industries

Federal agents are using flight manifests to arrest travelers with lapsed visas, drawing objections from airlines over safety and protocol. The F.D.A. approved Moderna’s mRNA flu vaccine after initially refusing to review the application but reversing course after a public outcry. A Senate panel scheduled a vote on contempt of Congress for Dr. Anthony Fauci after he declined to answer questions at a hearing last week, raising legal issues. Prosecutors are probing whistleblower claims that JPMorgan mishandled fraud cases, with a former executive alleging the bank improperly denied reimbursements of more than $100 million to victims of financial scams. The U.S. is halting key metal waste exports in a push to break reliance on China, as Washington races to secure raw materials crucial for defense and other industries. The federal government is ending its contract with a Kentucky nonprofit after reports of abuses, stating the organization pressured medical workers to remove organs from patients who were getting better.

Dealmaking and Investment Activity Continue Amidst Market Shifts

Visa is acquiring Bio Catch, a fraud-reduction platform that uses artificial intelligence, for $2.4 billion in cash. Two private credit funds managed by Blue Owl Capital Inc. bought back a combined $90 million of shares, marking a consecutive quarter of repurchases as the asset manager sought to steady the vehicles’ value. Apollo Global Management reported record revenue from fees as it vies to be one of Wall Street’s largest lenders. Infinx Services Pvt. a healthcare revenue cycle management company, is considering an initial public offering of as much as $300 million in India, according to people familiar with the matter. Bodycote is facing separate bids from CVC and Veritas, valuing the FTSE 250 industrials group at about £1.8 billion including debt. Glencore plans a secondary listing in Australia, as the miner has long complained its London shares are undervalued. LIV Golf is pursuing a “grand bargain” with Saudi Arabia’s Public Investment Fund and BC Partners, with potential investors seeking assurances that the tour’s star players will remain.

Company-Specific News and Strategic Moves

TikTok is laying off 250 employees in its Nashville office, which was home to members of the app’s content moderation team. Etsy will cut 12% of its workforce as the CEO focuses on the core marketplace, with these cuts not driven by cost-cutting initiatives or artificial intelligence. Goodyear swung to a loss of $204 million, or 71 cents a share, compared with a profit of $254 million a year ago, due to lower tire volume and higher costs. Zillow posted a loss of $4 million as restructuring costs of $36 million weighed on the bottom line despite higher revenue, but Zillow’s revenue jumped 18% from a year earlier to $772 million, with rentals offering a "bright spot." Duolingo Inc. shares fell as much as 12% after the company’s conservative revenue outlook for the current quarter overshadowed user growth. Block raised its full-year guidance and reported higher second-quarter revenue as growth in its commerce and financial solutions businesses helped offset declines in Bitcoin. Spotify climbed to 300 million premium subscribers, reporting a 14% quarterly revenue increase from a year earlier. Honda doubled profit and lifted guidance on a weak yen, aiming to improve its hybrid EV offerings to bolster its car business’s profitability.

Labor Market and Workforce Adjustments

The New York City parking sticker of shame has returned after 14 years, with the city again slapping stickers on cars that do not move for street sweepers. Gen Z is finding it difficult to afford a first date in New York City, with crushing economic factors creating a barrier to romance. The mayor of New York is firing corporate leaders from a city fund’s advisory board, signaling a change in how power brokers access City Hall. Wildfires forced 60,000 evacuations in Spokane. A 37-year-old man was arrested on suspicion of arson in a Spokane wildfire after a witness reported seeing him near the ignition site, as winds were forecast to increase.