Last updated: August 7, 2026, 11:34 PM ET
Equities
US stocks notched a record after the July jobs report eased rate-hike fears, with the S&P 500 and Nasdaq capping their best week since April. The S&P 500 rose to a fresh all-time high Friday as traders scaled back expectations for Federal Reserve tightening. Markets rallied on the surprise job losses, while U.S. stocks rose as odds of a rate hike fell. Major indexes gained on the data, and U.S. futures jumped after the weak report. Earlier in the week, Dow industrials led a decline, breaking a winning streak, while stocks fell on US-Iran worries that spurred an oil rally. Big Tech stocks stormed back as AI fears faded, leading a broader recovery. Global funds piled back into Indian IT stocks after months of selling. Chinese quant hedge funds suffered steep losses in July after a rout in AI-linked stocks. UK equities rose 4% during a holiday week, while European stocks gained a fourth straight week on strong earnings. European shares advanced for a fourth day as WPP led media sector gains.
Investor bullishness reached its most extreme level since 2021, per Bank of America’s sentiment gauge, prompting strategists to recommend reducing risk. Wall Street risk complex surged anew despite a catalog of complaints, reflecting market indifference. Garbage-truck margin boost shows the AI profit boom has begun, with corporate adoption of tools paying off.
In corporate earnings, WPP shares soared the most since its 1995 IPO after its turnaround gained steam. SoftBank profit beat expectations, boosted by chip-stock holdings. Eli Lilly and Novo Nordisk raised profit outlooks on surging weight-loss drug demand. Allianz profit hit record as Pimco saw €32 billion in inflows. AIG profit beat estimates on strong underwriting. Kenvue reported higher profit and sales ahead of its acquisition by Kimberly-Clark. Six Flags shares slumped on missed attendance estimates. MercadoLibre shares slid on signals of more spending. Block raised full-year guidance on commerce and financial solutions growth. DoorDash profit fell as costs offset revenue growth. E.l.f. Beauty sales climbed 36% on Hailey Bieber’s Rhode brand. Versant Media shares jumped after raising its full-year outlook. Warner Bros. sales dropped on loss of NBA rights and a weak film slate. Paramount agreed safeguards for UK approval of its Warner Bros. Discovery deal. Infineon forecasts strong revenue growth on AI demand. Cathay Pacific profit jumped 71% on higher traffic. Take-Two sales higher but losses widened on discontinued development. Lyft's gross bookings rose to $5.5 billion, though growth is expected to moderate. Uber revenue up on delivery but issued a soft forecast due to autonomous vehicle investments. Uber pledged $10bn to win the robotaxi race. Wayfair sees recovery in US furniture demand. Allianz booked 11% rise in operating profit, reaching a record. Hindalco profit jumped 75% on higher metal prices. Dream Finders agreed to buy Beazer Homes for $916 million. JBS secured $2.5B investment from Indonesia’s Danantara. Allianz agreed to buy UOB’s asset management unit to expand in Asia. SpaceX shares neared the $135 IPO price again after staging a $327 billion rally. Private-equity firms are taking companies public at a rapid clip. Whatnot nearly doubled its valuation to $20 billion in new funding. ConocoPhillips CFO to ascend to the top role; ConocoPhillips chief Ryan Lance steps down after 14 years.
Fixed Income & Rates
Treasury yields fell after the July jobs report showed an unexpected loss of 23,000 jobs. Short-term Treasuries capped their biggest weekly rally since May as traders scaled back rate-hike expectations. Bond traders had braced for the labor data to tip the scale on a Fed hike. The bond market is signaling rising risks, with higher yields creating hardship for home buyers and hurdles for AI data centers. The US Treasury sparked debate over auction cutbacks to temper yields, challenging an article of faith in the bond market. Fed's Fima repo facility went unused for an eighth straight week, suggesting Japan did not use it for yen intervention. Wellington Asset Management reduced Treasuries exposure for German bonds after the Fed meeting fueled doubts about its inflation-fighting credentials. Bonds and dollar were weighed down by Washington policy decisions, rekindling the 'Sell America' trade. China sold long-dated yuan bonds in Hong Kong at record-low yields, underscoring strong demand. San Juan triggered blowout demand for its $121 million muni-bond sale. Syracuse megamall bonds face a $350 million loss as the developer buys back the mortgage for cents on the dollar. Gainwell Technologies kicked off a $5.8 billion debt overhaul, the year's biggest in software. Japan's neutral rate estimates have been revised up slightly. The EU is finally changing on banks with a new competitiveness strategy, though key issues like UK ties remain. Fitch is skeptical that Chile's tax cuts will boost growth enough to offset revenue drops. Gabon has become a top performer in emerging bond markets on hopes of an IMF program.
Currencies
Dollar fell to its lowest since May after soft US labor data reduced rate-hike expectations. Dollar hit 7-week low against a basket of currencies after the weak payrolls report. Yen surged 1% after the data, with speculation of further intervention. Hedge funds cut yen short bets sharply after coordinated US-Japan efforts stabilized the currency. Japan intervened three times during spring Golden Week to prop up the yen. The US decision to sell euros for yen without warning European policymakers is adding to geopolitical risks, according to BlackRock. Scott Bessent's yen trade has unintended consequences, risking that the Fed is being roped into easing. Emerging-market carry trades show resilience even after yen-funded strategies were dented. Yen intervention illustrates the dangers of monetary experiments, with Tokyo and Washington possibly creating long-term risk.
Commodities
Oil futures settled higher Friday, with WTI up 1.2% to $78.18, though down 7.7% on the week, and Brent up 1.3% to $83.55 for a 5% weekly loss. Iran's oil exports stall as Kharg Island idles under a US blockade, with naval interdiction halting tankers. Oil analysts are stumped by a case of missing barrels. US diesel exports hit a record as domestic stockpiles fell, signaling a global scramble for diesel. Fuel-makers will keep reaping standout margins through next quarter, per Phillips. US natural gas futures posted a seventh consecutive weekly loss on strong production and soft LNG feedgas. Copper heads for new highs as the US and China squeeze buffers, depleting LME inventories. Copper market is tightening fast, with a surge in shipments to the US and rising orders in China setting the stage for a rally. Copper headed for record close in London on signs of tighter supply. Nickel declined to a three-week low on speculation Indonesia will grant a higher ore-production quota. China's central bank extended its gold buying streak to 21 months, pushing bullion above $4,000. China is stockpiling gold in Hong Kong to support the city as a trading hub. Lumber prices surged despite the housing slump, while the US banned exports of battery and tungsten waste. Ukraine's grain exports could fall by more than half this season after Russian attacks disrupted Black Sea ports. World sugar market data becomes more opaque as traders lose trust in Brazil’s cane-crush indicators. Trump tariffs created a “tortuous experience” for soybean trade, a Chinese diplomat said. Mosaic Co. pullbacks in fertilizer production haven’t offset surging input costs from the Iran war. Rare earth access remains a concern. DR Congo launched probe into uranium-contaminated cobalt exports. Chinese traders stopped dealing with iron ore trader Radiant World; Glencore took provision on its exposure to the firm. Mexico deployed troops to secure avocado heartlands after violence prompted the US to suspend imports.
Macro & Policy
Labor market reversed as employers balked at hiring, with a spring surge fading rapidly. Weak jobs report does not eliminate the prospect of a rate rise, as the Fed remains focused on inflation. Jobs report poses a new test for Fed Chair Warsh as investors expect a rate hike as soon as next month. BlackRock's Rieder said the surprise payroll contraction reflects a “productivity revolution” from AI, with the US economy on track for 6% GDP. Canada offered concessions in trade talks but demands a comprehensive deal to avoid 50% tariffs. Trump administration sent the Fed governor a letter saying it is “considering” firing Lisa Cook, reviving a legal battle. Senate passed sanctions targeting Russia and Iran, championed by the late Sen. Lindsey Graham. Senate confirmed Christopher Phelan as chairman of the Council of Economic Advisers. SEC dropped an insider-trading lawsuit against a former healthcare executive who was pardoned by President Trump. Global investors debate the 'Sell America' trade after a flurry of Washington policy decisions. Wall Street bankers eye supersize bonuses of up to 30% as volatile markets and huge stock offerings fuel profits. Britain curbs power exports to Europe to preserve supplies during heatwaves. Hungary faces dramatic impact from drought and a nuclear outage. China's financial hub Shanghai seeks to permit extending commercial land leases. US bans exports of used critical minerals for a year.
Geopolitics & Trade
Houthis attacked a Yemeni military camp, raising fears the 2022 truce is collapsing. New intelligence warns Russia may provoke NATO amid dwindling US munitions. Iranians say Trump's promises have fallen by the wayside as the Iran war drags on. US hunts for Cuba's next leader amid pressure, warning a hard-line figure could emerge. Three allies signed defence pact as Saudi Arabia, Turkey and Pakistan deepen security cooperation. The state of Iran's nuclear sites continues despite the conflict, experts say.
Real Estate
UK house prices were unchanged in July as higher mortgage rates stretch affordability, putting the market in “suspended animation.” US REITs have earned the best returns over the past 10 years, led by data-center funds. Lim Chap Huat sues Brookfield over an aborted real-estate joint venture. Canada's PSP is considering a $1.5 billion sale of roads in India. Toms Capital pressures Voya to explore a sale, bringing the push to shareholders. Ford plans a four-door version of the Mustang for the first time.
Crypto & Digital Assets
Passing the Clarity Act on digital assets is a matter of national security, as crypto activity could migrate to lightly regulated foreign venues. Legal certainty for crypto is defended by Sen. Cynthia Lummis. Defending the Clarity Act provides clear jurisdictional lines and consumer protections. Wintermute gained broker license to step onto regulated Wall Street, aiming to take on Jane Street and Citadel. DraftKings CEO blasted prediction bets on earnings calls, saying they are not good for the industry. CFTC warned prediction markets against using American-style gambling odds. Customers at unlicensed exchanges are being targeted by scammers exploiting EU crypto rule changes.
Market Talks & Roundups
Market Talks on energy offered insight on Brazilian oil-and-gas companies, Oklo and more. Auto & Transport Market Talk covered Lyft, Daimler Truck and others. Market Talks on tech included Take-Two, Fox Corp. Tech, Media, Telecom Market Talk covered AMD, SpaceX, Disney. Health Care Market Talk included Eli Lilly, Novo Nordisk, Fresenius.
Other Movers
FAA ordered inspections of 471 Boeing 737 MAX jets for possible cracks. Trip.com was fined 518 billion yuan (about $71 billion) for market abuse, abusing its power as a platform handling more than half of China’s hotel bookings. Wendy's withdrew outlook and slashed its dividend as its turnaround struggles. Papa John's cut outlook and suspended its dividend. Under Armour lowered revenue outlook on soft demand. Vusion explores options including a possible sale. Goodwin Plc started strategic review that may lead to a sale of a key business. Airtable selling to Bending Spoons for just under $2.3 billion. VideoAmp cut staff as AI agents take center stage. Google shifts AI leadership back to Sergey Brin as Deep Mind’s Demis Hassabis steps aside. Alibaba's latest AI model aims to recoup investor confidence. SoftBank profit beat expectations on chip bets.
Final Notes
The Dow fell 460 points earlier in the week, breaking its winning streak, while oil prices gained amid talks to reopen the Strait of Hormuz. Peak shipping season persists in Southern California, with the Port of L.A. leader saying it continues. How a few hot stocks can make 'twin' funds act like strangers, as index funds diverge this year. This fashion IPO's growth story looks flimsy, with Reformation’s edge unproven. Worst-ever Brazil market outage put B3’s near-monopoly in focus. The Free Money AI Bond Buildout is gone as hyperscaler debt funding gets pricier. Exxon nears peak impunity on climate obligations, moving against EU carbon storage rules. UK manages record share of assets on behalf of overseas clients, dispelling worries over London’s status. Indian perfume brands are finding global success after years of inspiring western perfumery. Big Law's new private equity era explores taking outside capital. The Wall Street and Silicon Valley investors who got burned by Situational Awareness. Situational Awareness bets $400 million on stealth chip startup Source Foundry. Watchdog moves to stop Aldi and Lidl blocking rival store openings in the UK. MFS collapse prompts UK watchdog to crack down on financial crime. Don Lemon accuses DOJ of vindictive prosecution in a church protest case. Prosecutor sues DOJ over dismissal after a right-wing influencer’s claim. Voter-registration error could cost immigrants a shot at a green card. Michigan Democrats pick El-Sayed in a primary, setting up a progressive test in the fall. Moderate Democrats prepare for 'war' against an ascendant left, planning a $15 million effort. El-Sayed reflects on victory in an interview, recalling conversations with establishment figures. The Wall Street risk complex surged amid a deluge of fresh cash, with indifference to complaints. Lazard fund beating 93% of peers added Samsung during the memory rout. Zurich Insurance profit rose 13% on data-center demand, with no material wildfire exposure. Liechtenstein's LGT aims to expand private banking in Japan. India's top bank net income beat estimates, shares rose. China's Unitree prices IPO to raise $900 million, testing interest in humanoid robots. AI creates first synthetic viruses with a genomic language model. Taming AI's wild frontier warns that the most advanced systems evolve faster than safety efforts. Four top Google AI researchers form a new startup, led by Jeff Dean with Google backing. Starlink mobile threat exaggerated, says T-Mobile CEO. Moonshot revamps structure for a Hong Kong IPO to win Beijing nod. Big Tech stocks storm back as AI fears fade and euphoria resumes.