Public Markets 3 Days

Last updated: August 7, 2026, 4:15 PM ET

US Equities

Major U.S. stock indexes gained after the July jobs report came in much cooler than expected, prompting traders to scale back rate-hike expectations. The Dow rose after data showed the U.S. economy unexpectedly lost 83,000 jobs in July, while US stocks pared gains as the jobs report eased fears of an imminent Fed rate increase. Big Tech stocks stormed back after spending much of the year in the stock market doghouse over fears about their profligate spending on artificial intelligence. A Bank of America sentiment gauge hit its most extreme bullish level since 2021, prompting strategists to recommend reducing exposure to risky assets. The Nasdaq fell after a morning rally as SpaceX's huge AI spending rattled investors, while the Dow held onto gains. European stocks rose for a fourth straight week on strong earnings and growing M&A chatter, lifting regional benchmarks to fresh records. UK shares surged with the FTSE 100 fund rising 4% during a holiday period. The UK’s sluggish IPO market is leaving private equity and venture capital firms with fewer exit routes, increasing reliance on sales to other buyout shops.

Fixed Income

US Treasuries rallied after a weak July jobs report reduced expectations that the Federal Reserve will raise interest rates. Treasury yields fell after the much weaker-than-expected U.S. jobs report, while bond traders looked to the labor market data for clues on a possible Fed pivot. The US Treasury sparked debate over auction cutbacks designed to temper yields, challenging long-held beliefs about the world’s biggest bond market. Japan’s four largest life insurers reported combined unrealized losses on domestic bonds of $96 billion in the three months through June, showing the risks from soaring interest rates. Bond yields were signaling rising risks for home buyers and higher hurdles for A.I. data centers and the stock market. Wellington Asset Management reduced its exposure to US Treasuries, shifting into German bonds after last week’s Fed meeting fueled doubts about its inflation-fighting credentials. Alphabet’s jumbo bond sale drew $115 billion of investor demand, signaling renewed appetite for debt tied to the artificial intelligence boom.

Currencies

The dollar fell to its lowest level since May after soft US labor data reduced expectations that the Federal Reserve will raise interest rates. The dollar hit a seven-week low against a basket of currencies after an unexpected decline in U.S. nonfarm payrolls. The yen surged 1% against the dollar after the US jobs data, amid speculation that authorities could intervene again on the currency. The US selling euros for yen to support Japan’s currency without warning European policymakers is adding to geopolitical risks, according to BlackRock. The South Korean won rose to its strongest level in almost 10 months as exporters converted their dollar earnings into the local currency. India raised $40 billion from its diaspora to support the sagging rupee, drawing stronger-than-expected inflows. China’s central bank extended its gold buying streak to 21 months, ramping up additions as bullion prices built support above $4,000 an ounce.

Commodities

Oil futures shook off early weakness and moved higher as the market awaited news on a deal to reopen the Strait of Hormuz. Oil gained as tensions in the Middle East flared while traders monitored progress toward a deal between Iran and Oman. Iran’s oil exports stalled as a US blockade appeared to halt tankers from carrying Tehran’s crude, idling the Kharg Island terminal. Saudi crude shipments to the US dropped to zero in July for the first time since 1985, as US refiners pivoted away. U.S. natural gas futures picked up ground following losses on the expanding inventory surplus. Copper headed for new highs as a two-way pull depleted LME inventories, raising the risk of another spike in futures. A copper market crunch is brewing as the US and China compete for metal, setting the stage for a rally to all-time highs. Global food prices rose in July as weather and war lifted costs, with the near-total closure of the Strait of Hormuz compounding expectations of a strong El Nino. Global food prices hit a three-year high as renewed concerns over grain export corridors compounded adverse weather. Ukraine grain exports could slump by more than half this season after Russian attacks disrupted Black Sea ports. Gold held steady near $4,000/oz as China’s central bank extended its buying streak.

Global Markets

European indexes largely edged higher in cautious trade ahead of US jobs data and Middle East talks. WPP shares jumped more than 25% as the advertising group’s overhaul began to bear fruit. FTSE 100 futures rose on Middle East optimism. Japan’s Government Pension Investment Fund posted a $152 billion gain in the June quarter as global and domestic stocks rallied. Taiwan traders swallowed losses after a historic 9.7% drop in the stock market, with some borrowing heavily to double down. China’s quantitative hedge funds suffered steep losses in July after a rout in stocks linked to artificial intelligence. India’s top bank reported better-than-expected profit, benefiting from strong credit growth. European hydropower stocks are low after repeated heatwaves, threatening higher electricity prices later in the year.

IPOs & Deal Activity

Private-equity firms are pouncing on the hot IPO market as sluggish dealmaking has made it hard to find buyers. Whatnot, a live-shopping platform, has nearly doubled its valuation to $20 billion in less than a year. Dream Finders agreed to buy Beazer Homes for about $915 million, following several months of talks. Ares Management is leading a $2.2 billion direct loan to finance a healthcare services acquisition, one of the biggest private credit deals this year. Bodycote received two private equity bids from CVC and Veritas valuing the FTSE 250 industrials group at about £1.8 billion. Gainwell Technologies kicked off a $5.8 billion debt overhaul, the US software sector’s biggest of 2026. Citadel’s flagship fund surged 6% after buying billions of dollars of AI stocks from Leopold Aschenbrenner’s Situational Awareness fund. Celestica is raising $3 billion from selling new shares to fund data center expansion for the AI buildout.

Corporate Earnings & Outlook

ConocoPhillips CFO will ascend to the top role, while fast-food burger battles and new layoff data also made news. Under Armour lowered its revenue outlook on soft demand, especially in North America and Asia-Pacific. DraftKings second-quarter revenue fell amid promotions, posting a loss of $67.6 million. Take-Two logged higher sales but its loss widened due to discontinued development of a title. Allianz posted an 11% rise in group operating profit, reaching a new record as it reshaped its portfolio. Honda raised its outlook 30% as a weak yen and US demand for hybrids lifted quarterly results to a record. Glencore profit jumped on a trading boom and record copper prices, with the Iran war sending energy prices soaring. Hindalco profit topped estimates by 75% as supply disruptions from the Middle East war drove metal prices higher. Wendy’s withdrew its outlook and slashed its quarterly dividend as its turnaround struggles to take hold. Bloomin’ Brands raised its earnings outlook as Outback diners bought pricier steaks. Thomson Reuters lifted its revenue guidance after double-digit growth across its three big business segments. CVS Health partnered with Eli Lilly on GLP-1 weight management, lifted its full-year outlook, and reported a nearly threefold increase in second-quarter profit. News Corp revenue rose with growth across all segments; digital-only subscriptions to The Wall Street Journal averaged nearly 4.5 million. Zillow swung to a loss of $4 million on restructuring costs, though revenue jumped 18% to $772 million. Sandisk revenue soared on AI data storage demand, posting net income of $6.9 billion. Datadog said lower usage from a major AI customer could dent growth, though second-quarter sales still rose. Atlassian CEO vowed to spend $250 million buying shares after strong quarterly sales. Toy Story 5 boosted Disney’s box office while US theme parks rebounded, lifting shares. Monte dei Paschi weighed options to fend off Intesa Sanpaolo’s $35 billion takeover bid. Volkswagen’s major shareholder urged faster cost cuts and excess capacity reduction to return to competitiveness.