Last updated: August 6, 2026, 10:07 PM ET
Geopolitical Risk & Commodities
Oil prices extended their advance in early Asian trade as reports emerged that Iran had attacked "hostile targets" in the Strait of Hormuz, with Tehran seeking to bar US ships from the critical waterway in a deal with Oman. The flare-up in geopolitical risks sent stocks and bonds lower as oil jumped, fueling inflation worries before Friday's jobs report. US stocks in a jittery session amid doubts about the reopening of the Strait of Hormuz. The Dow industrials led US stocks mostly lower as oil prices rose amid uncertainty in the Middle East, breaking its winning streak with a 460-point decline. The dollar finished its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East. Gold edged higher in early Asian trade, with markets monitoring signs of diplomatic progress in the Middle East conflict. Gold then in a narrow range as traders assessed the impact of a reported Iranian attack in the Strait of Hormuz on the Federal Reserve's path for interest rates. Comex gold 0.09% lower at $4242.00, while silver prices also dropped, snapping two- and three-day winning streaks, respectively. Mosaic Co.'s pullbacks in fertilizer production haven't been enough to alleviate the impact of surging input costs from the war in Iran. The US shipped a record amount of distillate fuel overseas last week as domestic stockpiles fell again, the latest sign that the global scramble for diesel is increasingly draining US supplies. US imports of Saudi Arabian oil dropped to zero in July, the first time that's happened for an entire month since 1985, according to preliminary government data. Fuel-makers enjoying profits will likely keep reaping standout margins through the next quarter and beyond, according to an executive from a top US refiner.
Currency Markets & Intervention
The yen surrendered nearly half of its intervention-driven gains heading into the end of the week, fueling speculation among traders that authorities may step into the market again. The dramatic foreign exchange market intervention by Trump and Bessent to rescue the weakening yen is one of the most significant in decades, aiming to stabilize the currency and stave off a larger crisis. The US is bolstering the yen, as it did with the Argentine peso, and the reasons are not solely economic. The way the yen trade is being executed should make us worry that the Federal Reserve is being roped into easing monetary conditions. A rarely used Federal Reserve liquidity facility saw no activity last week, suggesting Japan didn't use the tool in its latest effort to support the yen. The dollar hedging costs jumped as Federal Reserve Chairman Kevin Warsh ditches rate guidance, leaving Wall Street guessing at his next move ahead of Friday's payroll numbers. Only Bank of Japan can arrest the yen's decline, as higher interest rates are needed to address a growing yield gap with the US. currencies consolidated against the dollar ahead of the US nonfarm payrolls report due later today. WSJ Dollar Index edged lower, down five of the past six trading days. Japanese government futures fell in early Tokyo trade, tracking overnight price declines in the US Treasury market. Treasury yields rose ahead of Friday's US payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures. The US Treasury on Wednesday retained its previous guidance for future debt issuance, signaling no change in note and bond auction sizes well into 2027 even as federal borrowing needs climb. 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. Bonds and the dollar are being weighed down by Washington policy decisions, as investors ponder whether the 'Sell America' trade is back.
Equity Markets & Corporate Earnings
Japanese stocks were lower in early trade as uncertainty over the Middle East conflict and energy costs persist, with the Nikkei falling 0.7%, dragged by chip-related stocks. Holdings Corp. tumbled by the most on record in Tokyo trading after the medical equipment maker reported first-quarter results that fell short of expectations. Australia's stock climbed to a record on easing concerns over the US-Iran conflict and supportive signals in the domestic economy. indexes rose strongly after the opening bell, with defense and AI-related stocks gaining. SoftBank Group Corp. reported a smaller-than-expected decline in quarterly net income, helped by a rally in its chip-stock holdings while it awaits further gains from its bets on OpenAI. DraftKings Inc. second-quarter sales and earnings that missed analysts expectations as the sportsbetting industry confronts a new challenge from prediction-market players. The online sports betting company posted a loss of $67.6 million for the second quarter, compared with a profit of $157.9 million a year earlier. Options traders were piling into bullish wagers on Draft Kings Inc. ahead of the sports betting firm's earnings report. Honeywell Aerospace plunged on failure to overcome supply snarls, as the group slashes its outlook due to bottlenecks limiting its ability to convert strong demand for advanced parts into sales. Warner Bros. Discovery Inc. a steep drop in sales as it copes with the loss of National Basketball Association rights and a movie lineup that compared poorly with last year. The CEO of Warner Bros. expressed confidence the Paramount deal will close, as streaming revenue improves with HBO Max expanding its subscriber and advertising base.
Earnings, Guidance & Consumer
quieted fears of a midyear slowdown, forecasting accelerating third-quarter sales growth as artificial intelligence-driven search and broad merchant expansion fuel market-share gains. Instacart shares rose on higher revenue and a strong outlook, with the company reporting revenue increased to $1.04 billion from $914 million, beating Wall Street expectations of $1.03 billion. Airbnb boosted its full-year forecast on strong demand as AI bets pay off, now expecting revenue to increase by at least a mid-teens rate this year, up from its prior projection for growth in the low- to mid-teens. Lyft's second-quarter bookings rose to $5.5 billion, but the rideshare company expects bookings in the current quarter to rise at a slower pace of 15% to 19%. Beverage's 20% rise in second-quarter sales was driven by growth among customers outside the US. Consolidated Edison posted a second-quarter profit of $308 million, up from $246 million a year earlier. reported higher profit and sales in the second quarter, boosted by higher prices and volumes, as the company continues working to turn around its business ahead of its acquisition by Kimberly-Clark. Kimberly-Clark reported lower profit in its second quarter and revenue missed estimates, as allegations about the quality of diapers in the China market disrupted sales. A state-run newspaper said Huggies diapers tested positive for a substance called formamide, but maker Kimberly-Clark said the findings are false. Papa John's cut its outlook for the year and suspended its dividend, as the pizza chain's North American business continues to face a soft consumer environment. Sweetgreen now same-store sales to drop between 7% and 8% due to lower demand from the multistate cyclosporiasis outbreak, as its loss widens. Door Dash's profit fell as costs offset revenue growth, driven by higher costs of revenue from more orders, as well as increases in sales, marketing, and research and development expenses. Wayfair had a mixed second quarter, as its US business grew while international sales fell, with the company seeing a recovery in US furniture demand. Companies reported higher second-quarter revenue as its market share in both purchase mortgages and refinancings rose. Match Group's second-quarter profit came in at $170.5 million, but revenue fell 1%, weighed down by sluggish results for Tinder. Spotify climbed to 300 million premium subscribers, reporting a 14% quarterly revenue increase from a year earlier. The FDA approved the first drug to treat a root cause of narcolepsy, which could help other sleep conditions as well.
Deals, M&A & Corporate Actions
Nielsen Holdings agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion. Japanese beverage Kirin Holdings Co. is acquiring Toronto-based Jamieson Wellness Inc. in a deal that values the Canadian vitamins and supplements maker at about C$2 billion ($1.4 billion). Trump administration has agreed to roughly $4 billion in settlements this year to cancel planned offshore wind projects, including a $1.22 billion deal with German utility RWE AG. Alphabet Inc. has received about $115 billion of orders for its latest jumbo bond sale, signaling renewed investor appetite for debt tied to the artificial intelligence boom after a recent selloff. 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 CEO Oliver Baete pursues expansion in Asia. Apollo Global 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. BlackRock BDC moved $523 million in loans to a Pantheon-backed fund, involving nearly half of BlackRock TCP Capital's debt investments, and the lender is studying even more drastic moves. Jane Street in talks to shift its $11bn in debt to investors including Pimco, in a private credit deal that would allow the secretive trading firm to make further investments in AI. Toyota plans a $6.3bn buyback as a weak yen boosts its outlook, with the world's biggest carmaker expecting to sell more than 5 million hybrid electric vehicles this year. Airtable is selling itself to Bending Spoons for just under $2.3bn, and the cut-price sale is just the start for software also-rans. India expanded the size of LIC's share sale to raise $3.3 billion amid strong demand, even as the country's IPO market stalls. Nigeria approved a $4.5 billion arrangement with the state-owned energy firm NNPC that will liberate funds to bolster foreign-exchange reserves and spending on infrastructure. Ratcliffe's Ineos has bought more than €400mn of equities in listed European chemical peers, doubling down on the sector's shares while some of the group's bonds trade at a discount. Airtel will list its $10bn Africa finance business in London, while the Indian government sells a stake in LIC. Flutter's chief Peter Jackson is stepping down, to be replaced in October by the head of Flutter's international business, as the gambling group cuts guidance. Conoco Phillips chief Ryan Lance will step down after 14 years, as the third-largest US oil and gas company changes leadership while profits climb on war-driven price surges. Glencore Plc 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.
Policy, Regulation & Legal
A New Mexico judge ordered Meta to pay $942 million to address harm to kids from social media, including creating a new $567 million fund in addition to paying $375 million in previously determined civil penalties. The Trump administration will impose a minimum import price for polysilicon, a key component for semiconductors and solar panels, as well as tariffs for products made with the material. Washington announced a year-long ban on overseas sales of scrap tungsten and 'black mass', banning US exports of various used critical minerals. The UK'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. Trump administration is sending back record numbers of Vietnamese, Laotians and Hmong, many of whom came to the United States as young war refugees and later committed crimes. New Jersey added as many as 6,600 noncitizens to its voter rolls, and those people could now be forced out of the country. California sued DuPont over an alleged effort to avoid 'forever chemicals' liabilities, with the state's attorney-general saying the lawsuit involves 'first-of-its-kind' litigation. A US court agreed with an emergency stay requested by lawyers acting for Trump's investment trust, allowing the president to delay release of financial details in the $10bn BBC defamation case. The union representing IRS workers sued over Trump's deal granting sweeping tax protections, marking the first time anyone has used the courts to directly kill the sweeping tax protections offered to the president and his family. A Senate panel voted to hold Dr. Anthony Fauci in contempt of Congress after he refused to answer questions at a hearing last week, invoking the Fifth Amendment. The Trump administration will deregulate Head Start, the antipoverty program created under R.F.K. Jr.'s uncle, with officials saying the changes will save money by lifting onerous requirements. The rate of UK chemical company closures doubled between 2020 and 2025, hurting the country's ability to make medicines and missiles. The US urgently needs to broaden its export control regime if it's serious about winning the AI race. An AI model has created synthetic viruses not found in nature, and the genomic language model has huge potential to redesign organisms such as bacteria.