Last updated: August 6, 2026, 11:33 PM ET
Geopolitics and Oil
Oil prices extended gains on reports that Iran attacked "hostile targets" in the Strait of Hormuz, with Tehran seeking to bar US ships from the critical waterway in a deal with Oman. 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. US stocks surged and oil fell sharply after Bessent said the US could reach a deal with Iran to reopen the Strait of Hormuz "today or tomorrow." The price of oil fell sharply on hopes that talks were progressing on reopening the Strait of Hormuz. Oil rose as prospects for a lasting agreement to reopen the Strait of Hormuz remained elusive, with bonds falling on inflation concerns as traders awaited the US jobs report for clues on the path of interest rates. Saudi Aramco reported a 33% profit surge despite the war's disruption, as higher oil prices propelled a quarterly earnings jump for Saudi Arabia's energy giant, which used pipelines to work around disruptions in the Strait of Hormuz.
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. Iran says it has reached agreement with Oman on a Hormuz shipping route, as the Islamic republic is determined to retain a degree of control over the chokepoint. 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 diesel prices have overtaken the Biden-era average in a blow to Trump, with the cost for fuel that powers industrial America set to remain elevated even as crude falls. Fuel-makers enjoying skyrocketing profits will likely keep reaping standout margins through the next quarter and beyond, according to an executive from a top US refiner. OPEC's crude oil production recouped some more of its wartime losses last month with gains in Kuwait, Saudi Arabia and Iraq, though opaque shipping data complicated the process of tracking the group's output.
US Equities
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. US stocks finished mixed as optimism about the reopening of the Strait of Hormuz was offset by more volatility in artificial-intelligence wagers. The Dow industrials led US stocks mostly lower as oil prices rose amid uncertainty in the Middle East. Strong earnings powered the Dow to another record, with the blue-chip average notching its 24th high of the year while the Nasdaq slipped. US stocks fell in a jittery session amid doubts about the reopening of the Strait of Hormuz. Wall Street's blistering run took a breather, with traders digesting the recent stock gains and monitoring any hints of progress toward a deal to revive the Strait of Hormuz. The S&P 500 edged lower after a $3.7 trillion advance as traders took a pause.
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 about the AI trade. Futures climbed as the latest batch of earnings pointed to strong demand for, and spending on, artificial intelligence, with the S&P 500 poised for another record as the AI spending narrative holds. Traders can't get enough of options betting on more gains in the S&P 500 Index, a gauge that has for months been in the shadow of its more volatile rival, the Nasdaq. Booming corporate profits are driving the S&P 500 near another record, dampening concerns about the war, inflation and more. The market's gains have broadened as the AI trade falters, with a fresh record looming for the unsinkable S&P 500.
Tech and AI
SpaceX shares held steady as investors digested the release of as many as 911.5 million shares worth about $100 billion from lock-up agreements that had prevented insiders from selling their stakes. SpaceX shares sank on AI spending plans, as the Elon Musk-led rocket company spent $15.8 billion on AI projects in the second quarter and doesn't plan to slow down. SpaceX, in its first earnings release following its record initial public offering, reported that its capital expenditures jumped nearly seven times from a year ago, with revenue also rising. Rocketing cloud and Starlink demand boosted SpaceX revenue 92%. SpaceX shares slumped after the company reported higher-than-expected AI-related outlays, which overshadowed its revenue growth. None of SpaceX's most ambitious plans are possible without the success of its Starship rockets. What has happened to the finances of Elon Musk's rocket maker over the past three months is pretty irrelevant, as SpaceX bolsters the case against quarterly earnings.
AMD shares fell 8% as Elon Musk committed to Nvidia chips for SpaceX, and while the company's sales to data centers doubled in the latest quarter, its revenue only narrowly beat analysts' estimates. Google shifted AI power back to co-founder Sergey Brin as Deep Mind's Demis Hassabis stepped aside, with the Silicon Valley parent consolidating control as the London lab's scientific culture gives way to urgency to build AI products. Four top Google AI researchers, led by Jeff Dean, formed a new startup with the backing of Google. Alibaba's latest AI model puts it back in the great game, as the ecommerce and cloud company hopes to recoup some of its lost shine. 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. Shares in Chinese AI darlings Zhongji Innolight and Eoptolink slid on a report that Washington is drafting a ban on optical transceivers.
Corporate Earnings
Honda doubled its profit and lifted guidance on a weak yen, as the Japanese automaker aims to improve its hybrid EV offerings to shore up its car business's profitability. Honda raised its profit outlook 30% as a weak yen and US demand for hybrids lifted quarterly results to a record. Toyota raised its earnings guidance and announced a more than $6 billion buyback, citing a weaker yen and a smaller impact from the Iran war. Toyota plans a $6.3bn buyback as the weak yen boosts its outlook, with the world's biggest carmaker expecting to sell more than 5 million hybrid electric vehicles this year. SoftBank 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. SoftBank's $8bn gain on its Intel stake helped the Japanese group beat expectations, though first-quarter profits declined following records set in recent quarters. SoftBank used its OpenAI stake to borrow $10 billion, as the Japanese technology investment company has vowed to become a leading builder of AI data centers and a major investor in AI-powered robotics.
HSBC posted sharply higher quarterly profit and planned a $1 billion share buyback, with pretax profit increasing across the bank's four key segments, rising especially sharply in the business of supporting affluent clients with their finances. HSBC resumed share buybacks as quarterly profits soared to $10.1bn, with wealth management and insurance business in Hong Kong boosting Europe's biggest lender. HSBC will consider boosting its bonus pool for bankers if strong performance continues, according to Chief Executive Officer Georges Elhedery. WPP shares soared the most since its 1995 initial public offering after the advertising agency reported its turnaround efforts are gaining momentum. WPP said revenue less pass-through costs, a closely-watched metric, fell less sharply last quarter thanks to a recovery in its media-buying operations. WPP shares jumped more than 25% as its overhaul began to bear fruit, following the London-listed advertising group's root-and-branch review to streamline its businesses.
Eli Lilly reported higher net income and revenue in the recent quarter, fueled by continued surging demand for its GLP-1 weight-loss drugs. Eli Lilly and Novo Nordisk raised their profit outlooks as weight-loss drug demand soars, though their share prices diverged as investors took a dim view of Novo's over-reliance on obesity treatments. Novo Nordisk lifted its guidance after a second-quarter boost, saying annual sales and operating profit should fall less than it previously expected. Novo underwhelmed investors with soft Wegovy pill sales that failed to live up to the hype of an obesity drug whose launch was billed the most successful in history. CVS Health launched an Eli Lilly GLP-1 partnership and lifted its outlook as profit increased nearly threefold in the second quarter. Amazon will offer GLP-1 weight-loss drugs to Medicare Part D patients, with Novo Nordisk's Wegovy and Eli Lilly's Zepbound and Foundayo available at a cost of $50 a month.
Currencies and Rates
The yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains, fueling speculation among traders that authorities may step into the market again. The US blindsided the European Central Bank last week with its historic currency intervention to help Japan, only informing its counterparts in Frankfurt after it sold euros to buy the yen. Christine Lagarde and Scott Bessent spoke only after Washington's historic intervention to prop up the yen. The US is bolstering the yen , as it did with the Argentine peso, and the reasons are not solely economic. One of the most dramatic foreign exchange market interventions in decades aims to stabilize the slumping yen and stave off a larger crisis. The way Scott Bessent's yen trade is being done should make us worry that the Federal Reserve is being roped into easing monetary conditions. 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.
Traders are rushing to hedge against swings in the US dollar ahead of Friday's payroll numbers as Federal Reserve Chairman Kevin Warsh leaves Wall Street guessing at his next move. The US nonfarm payrolls report due out Friday could shape the dollar's next move. Treasury yields rose ahead of Friday's US payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures. Treasury yields ticked down after weaker-than-expected private payrolls gains, edging slightly lower ahead of Friday's employment report from the BLS. Treasury yields cooled amid a busy day of US economic indicators and ahead of Friday's employment report from the Bureau of Labor Statistics. The WSJ Dollar Index fell 0.2%, down six of the past seven trading days. The dollar finished its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East.
Asia Markets
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. Fujifilm Holdings Corp. shares fell by the most on record after the Japanese company reported weaker-than-projected quarterly results. Japanese companies have already sold more corporate bonds with investor protection this year than in all of 2025, as lower-rated borrowers increasingly turn to the bond market instead of relying solely on bank loans. Daiichi Life Group Inc. has been stepping into bankers' shoes and contacting companies directly to see if they want to issue bonds, in an unusual investment tactic for an insurer. Japan's Topix stock index is poised for its biggest overhaul, with more than 600 companies likely to be gradually removed under new eligibility rules. A sale of 30-year Japanese bonds drew firm demand, delivering some calm to a market that's been buffeted by currency turmoil and worry over the government's debt load.
The South Korean won rose to the strongest level in almost 10 months as exporters converted their dollar earnings into the local currency. 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. SK Hynix shares 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. Philippine economic growth dramatically slowed in the second quarter, defying expectations of a pickup, as the protracted Middle East conflict stokes inflation and drags down consumer spending. Australia's stock benchmark climbed to a record on easing concerns over the US-Iran conflict and supportive signals in the domestic economy. China's central bank is stockpiling more gold in Hong Kong, according to people familiar with the matter, in a move that's likely to support the city's push to become a major bullion-trading hub.
Deals and M&A
Nielsen Holdings agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion. Kirin Holdings Co. shares rose 2.4% to near record levels after the Japanese beverage maker announced a deal to acquire Toronto-based Jamieson Wellness Inc. that values the Canadian vitamins and supplements company at $1.4 billion. Segro accepted a £14bn takeover offer from US rival Prologis, adding to a spate of takeovers of London-listed companies after acquisitions of Schroders and Intertek. Bodycote received twin private equity bids from CVC and Veritas valuing the FTSE 250 industrials group at about £1.8bn including debt. Partners Group is nearing a €2bn deal for beauty group Aroma-Zone, with French asset manager Eurazeo in talks to sell its stake in the group that sells face serums and food supplements. P&G sealed a $3.8bn deal for supplements company Thorne, as the consumer goods group expands its health business in a sector that has boomed since the Covid pandemic.
Allianz agreed 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 growth in Asia. Disney will sell its stake in A+E Global Media to Hearst for about $1.2 billion, giving Hearst full ownership of prominent brands such as Lifetime and The History Channel. The 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. Airtable, once a high-flying start-up , is selling itself to Bending Spoons for just under $2.3bn. Jane Street is 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. 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.
Commodities
Gold jumped the most since February as prospects for a deal to reopen the Strait of Hormuz reduced expectations for Federal Reserve rate hikes, while a break above a key technical resistance level fueled buying. Gold edged higher in early Asian trade, with markets likely monitoring signs of diplomatic progress in the Middle East conflict. Gold moved 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. Gold and silver prices dropped, snapping two- and three-day winning streaks, respectively. 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. Gold futures finished higher for the day, as the latest JOLTS report showed the number of job openings little changed in June.
Copper prices rose for the third consecutive trading session and ended at fresh records, with gold and silver prices also settling higher. 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 futures on New York's Comex climbed to a record 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. Nickel declined to the lowest level since mid-July on renewed speculation that Indonesia will grant a higher ore-production quota to one of the country's largest mines, potentially boosting supplies. Lumber prices surged despite a housing slump, as steep duties on Canadian lumber, wildfires and sawmill closures have cut supply and pushed up prices. Codelco is suspending work on a project designed to extend the life of its biggest copper mine in Chile after identifying a new source of seismic risk a year after a rock burst killed six workers.