Public Markets 3 Days

Last updated: August 8, 2026, 2:31 AM ET

Equities

All three major US indexes notched fresh records on Friday, with the S&P 500 and Nasdaq capping their best week since May after July payrolls came in far weaker than expected. The jobs data showed the economy lost 23,000 jobs, giving traders reason to scale back rate-hike expectations, sending the S&P 500 to its second-best week of the year. The tech rebound was dramatic, with a $3.5 trillion increase in the Nasdaq 100’s market capitalization in just four days as Big Tech stocks stormed back on fading AI spending fears. A weak jobs report did not eliminate prospects of an interest rate rise, however, as officials are chiefly focused on the inflation trajectory. European indexes largely edged higher in cautious early trade ahead of the data, while UK shares held gains. In Asia, the Nikkei slid as electronics stocks dropped, but a melt-up in US tech drove the broader rally. WPP shares surged after its turnaround helped ease its top-line decline, while Take-Two Interactive logged higher sales but saw its loss widen. Under Armour lowered its revenue outlook on soft demand, and Wendy’s withdrew its outlook and slashed its dividend. European indexes rose as corporate earnings drove markets.

Fixed Income

Short-term Treasuries capped their biggest rally since May after the weak payrolls report prompted traders to further dial back expectations for Fed rate hikes. Treasury yields fell after the Bureau of Labor Statistics report, which showed the economy lost 23,000 jobs in July, the first contraction in payrolls since 2019. The US Treasury sparked debate over auction cutbacks to temper yields, questioning an article of faith about the government’s bond auctions. The bond market is signaling rising risks, with higher hurdles for AI data centers and the stock market. Barclays and HSBC say inflation-protected bonds have appeal as concern the Fed is dragging its feet on inflation grows. Puerto Rico’s capital saw blowout demand for its $121 million muni-bond sale this week. China’s central bank extended its gold-buying streak to 21 months, pushing bullion prices above $4,000 an ounce.

Currencies

The dollar fell to its lowest since May, hitting a seven-week low against a basket of currencies after the soft labor data reduced expectations for a rate hike. The yen surged 1% against the dollar, with traders on alert for signs of intervention. Hedge funds sharply reduced bearish bets on the yen after coordinated efforts by US and Japanese officials. The WSJ Dollar Index fell 0.16% to 96.01, down six of the past seven trading days. Dollar hedging costs jumped as Fed Chair Kevin Warsh leaves Wall Street guessing at his next move. The Colombian peso continues to be the best performing EM currency, defying the central bank’s efforts to slow its rally. Bank of America expects the yen to strengthen about 6% against the dollar by year-end.

Commodities

Oil futures settled higher but down on the week, with WTI up 1.2% but posting a 7.7% weekly loss after a diesel squeeze spurred by wars set the stage for a winter crunch. US natural gas futures extended losses to seven weeks as strong production and soft LNG feedgas offset high seasonal demand. Copper heads for new highs as US and China squeeze buffers, depleting LME inventories and raising the risk of another spike. A copper crunch is brewing as a surge in shipments to the US and rising Chinese orders set the stage for a rally. Ukraine’s grain exports could fall by more than half this season after Russian attacks disrupted Black Sea ports. China booked another flurry of US soybean cargoes, nearing a quarter of its trade truce target. JBS secured a $2.5 billion investment from Indonesia’s sovereign wealth fund to expand in Asia. Kazakhstan eyes a return to panda bonds with a $500 million deal. The FAA ordered inspections of 471 Boeing 737 MAX jets over possible cracks. Adnoc spent $1.3 billion to expand its tanker fleet after the UAE left OPEC.

Markets & Macro

Wall Street’s risk complex surged anew amid a deluge of fresh cash, with markets showing indifference to a growing catalog of complaints. A surprise contraction in payrolls reflects a “productivity revolution” rather than economic weakness, according to BlackRock’s Rick Rieder. The labor market has shifted into reverse as employers balk at hiring, with a spring surge rapidly fading. The CFTC warned prediction markets to avoid using American-style gambling odds as it fends off legal challenges. Draft Kings CEO Jason Robins blasted prediction bets on earnings calls. A short history of valuing stocks explores what shares are really worth. The Free Money AI Bond Buildout is gone as hyperscaler debt funding gets pricier. Private-equity firms eager for exits are pouncing on the hot IPO market. Gainwell Technologies kicked off a $5.8 billion debt overhaul, the US software sector’s biggest of 2026. A ratings firm accused of grade inflation vouched for $40 billion of insurer debt. Ghana’s central bank incurred $1.9 billion in losses on a domestic gold purchase program. The SEC dropped an insider-trading suit against an executive Trump pardoned. SpaceX shares neared their $135 IPO price again after a $327 billion rally. Fitch is skeptical that Chile’s tax cuts will boost growth enough to offset lost revenue. Blackstone BDC profit dropped 94% in Q2 as holdings declined. The US Senate confirmed Christopher Phelan as chairman of the Council of Economic Advisers. Trump restarted his battle to fire Fed Governor Lisa Cook.