Public Markets 3 Days

Last updated: August 6, 2026, 10:16 PM ET

Currency Markets: Yen Intervention Fallout Dominates

The yen has surrendered nearly half of its intervention-driven gains, fueling speculation among traders that authorities may step into the market again. The dramatic US-Japan coordinated intervention, which saw Washington sell dollars to prop up the yen, blindsided European Central Bank President Christine Lagarde, who spoke with Treasury Secretary Scott Bessent only after the historic move. The intervention was a form of currency activism that echoes Washington's playbook with the Argentine peso, suggesting the reasons are not solely economic. The Federal Reserve's Fima repo facility went unused for an eighth straight week, suggesting Japan didn't use that tool in its latest effort to support the currency. Citi says Japan has alternative tools to defend the yen without liquidating its more than $1.1 trillion US Treasury portfolio as its short-term debt holdings run low. Bank of America revised its expectations, now seeing the yen gaining about 6% against the dollar by year-end following the coordinated intervention. Meanwhile, dollar costs jumped as Federal Reserve Chairman Kevin Warsh ditches rate guidance, leaving Wall Street guessing at his next move. WSJ Dollar Index fell 0.2%, down six of the past seven trading days, as the greenback notched its best day in two weeks on oil price advances.

Energy and Commodities: Hormuz Tensions Drive Volatility

Oil rose in early Asian trade amid concerns over supply disruptions in the Middle East, with reports that Iran attacked "hostile targets" in the Strait of Hormuz. Crude futures fell to a three-week low after Treasury Secretary Scott Bessent said the US could be close to an agreement with Iran to reopen the Strait of Hormuz, while Qatar reported progress in diplomatic talks. Iran says it has reached an agreement with Oman on the Hormuz shipping route, determined to retain a degree of control over the chokepoint. US stocks fell in a jittery session amid doubts about the reopening of the Strait of Hormuz, with the Dow breaking its winning streak. Gold jumped the most since February as prospects for a deal to reopen the Strait of Hormuz reduced expectations for Federal Reserve rate hikes. Comex gold settled 0.09% lower at $4,242.00, snapping a two-day winning streak, while copper prices rose to a new record. Chinese institutional investors have swooped on gold in recent weeks, helping to arrest the precious metal's decline and keep prices above the key threshold of $4,000 an ounce. US crude oil inventories posted a weekly increase of 2.5 million barrels, against expectations for a fall of 1.2 million barrels. Saudi crude to the US plunged to zero in July, the first time that's happened for an entire month since 1985, as American refiners pivot away. US diesel exports surged to a record as the world grasps for supply, with domestic stockpiles falling again.

Equities: Tech Selloff and Earnings Season

Fujifilm 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. The Nikkei fell 0.7%, dragged by chip-related stocks, as uncertainty over the Middle East conflict and energy costs persist. US stocks were mixed as optimism about the reopening of the Strait of Hormuz was offset by more volatility in artificial-intelligence wagers. 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. Wall Street's blistering run took a breather, with the S&P 500 edging lower after a $3.7 trillion advance. The S&P 500 rose 1.8%, pushing past its previous peak at the start of June and capping a big turnaround from a recent selloff in technology stocks. 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. Europe Inc. is delivering one of the strongest earnings scorecards in years, setting up regional stocks to scale fresh peaks as analysts turn even more optimistic about a broad range of sectors.

Corporate Earnings: Mixed Results Across Sectors

SpaceX shares sank on 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, in its first earnings after its IPO, reported capital expenditures jumping nearly seven times from a year ago, with revenue rising 92% on rocketing cloud and Starlink demand. DraftKings posted a loss of $67.6 million for the second quarter, compared with a profit of $157.9 million a year earlier, as sales and profit fell short amid a prediction market blitz. WPP shares soared the most since its 1995 initial public offering after the advertising agency reported its turnaround efforts are gaining momentum. SoftBank Group Corp. reported a smaller-than-expected decline in quarterly net income, helped by a rally in its chip-stock holdings, with an $8 billion gain on its Intel stake helping the Japanese group beat expectations. HSBC posted sharply higher quarterly profit, planning a $1 billion share buyback, with pretax profit increasing across its four key segments. Eli Lilly reported higher net income and revenue, fueled by continued surging demand for its GLP-1 weight-loss drugs, as both Eli Lilly and Novo Nordisk raised profit outlooks. Novo Nordisk's popular Wegovy weight-loss pill disappointed investors with sales that failed to live up to the hype of an obesity drug whose launch was billed the most successful in history.

Deals and Corporate Finance: M&A Activity Heats Up

Airtel will list its $10 billion Africa finance business in London, as the Indian government also sells a stake in LIC. Nielsen Holdings agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion. Japanese beverage maker Kirin Holdings 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). 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. Jane Street is in talks to shift its $11 billion in debt to investors including Pimco, in a private credit deal that would allow the secretive trading firm to make further investments in AI. Ares Management Corp. is leading a $2.2 billion direct loan to help finance a healthcare services acquisition, in one of the biggest deals since the private credit market was roiled by record redemptions. Segro accepted a £14 billion takeover offer from US rival Prologis, adding to a spate of takeovers of London-listed companies. Bodycote received twin private equity bids from CVC and Veritas, valuing the FTSE 250 industrials group at about £1.8 billion including debt. Partners Group is nearing a €2 billion deal for beauty group Aroma-Zone, with French asset manager Eurazeo in talks to sell its stake.

Central Banks and Policy: Fed, Treasury, and Global Regulation

US Treasury 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. Treasury yields rose ahead of Friday's payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures. Treasury yields edged slightly lower after weaker-than-expected private payrolls data. 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. The 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. The US announced a year-long ban on overseas sales of scrap tungsten and "black mass," halting key metal waste exports in a push to break China reliance. 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. India's central bank raised $40 billion from its diaspora to support the sagging rupee, with the rare push to repatriate savings drawing stronger-than-expected inflows.