Public Markets 3 Days

Last updated: August 8, 2026, 8:33 AM ET

Public Markets

Equities

U.S. stocks surged to fresh records after a surprisingly weak July jobs report quashed expectations of near-term Federal Reserve rate hikes. The S&P 500 and Nasdaq capped their best week since April, with the index rising to a new all-time high. The Dow industrials led gains as traders priced in a more dovish Fed stance, while all three major indexes advanced on Friday after the data showed the economy unexpectedly shed 23,000 jobs. The market's reaction underscored a "bad news is good news" dynamic, as investors bet the central bank will hold off on raising rates. Asian stocks fell earlier in the week amid escalating US-Iran tensions, but the broader rally helped the S&P 500 notch its second-best week of the year. European equities also rose, with WPP shares jumping more than 25% after the ad group's overhaul began to bear fruit, though Siemens shares fell as its digital industries division missed growth expectations. In Asia, Taiwan stocks recorded a historic 9.7% drop, but retail traders largely held their positions, while the Korean won rose to its highest in 10 months on exporter dollar sales.

Fixed Income

Treasury yields fell sharply after the July employment report, cementing the biggest weekly rally for short-term Treasuries since May as traders dialed back rate-hike bets. The bond market is signaling rising risks, with higher yields posing challenges for home buyers and AI data center investments, while offering a boon for retirees. The US Treasury sparked debate over potential auction cutbacks to temper yields, challenging long-held assumptions about the world's largest bond market. In credit markets, Gainwell Technologies kicked off a $5.8 billion debt overhaul, the US software sector's biggest of 2026, while Fitch Ratings said it is upgrading 30 portions of collateralized loan obligations under a new methodology. San Juan triggered blowout demand for its $121 million muni-bond sale, as investors seized a rare opportunity for Puerto Rico exposure. Meanwhile, a Syracuse megamall faces $350 million in losses as the developer buys back the mortgage for cents on the dollar.

Currencies & FX

The dollar ended the week at its lowest since May, falling to a seven-week low against a basket of currencies after weak US labor data reduced expectations for Fed rate hikes. The yen surged more than 1% against the dollar following the jobs report, with traders on alert for potential intervention. Hedge funds sharply reduced bearish bets on the yen after coordinated US-Japan efforts helped stabilize the currency. Bank of America now expects the yen to strengthen about 6% against the dollar by year-end following the intervention. Currency interventions have a mixed record, analysts note, as macro forces often overwhelm official efforts. The Scott Bessent yen trade has unintended consequences for markets, with concerns the Fed is being roped into easing conditions. In other currencies, the pound consolidated gains, while Chinese banks expanded direct settlement currencies to aid the yuan's global role, bypassing the dollar in cross-border trade.

Energy & Commodities

Oil futures rose 1.2% Friday with WTI settling at $78.18 a barrel, but posted a 7.7% weekly loss as demand concerns offset Middle East supply risks. Brent crude gained 1.3% to $83.55 for a 5% weekly decline. US natural gas futures extended losses to seven consecutive weeks, as strong production and soft LNG feedgas offset high seasonal power demand. Iran's oil exports have stalled as a US blockade idles Kharg Island, halting tankers from carrying Tehran's crude. Saudi crude shipments to the US dropped to zero in July for the first time since 1985, as US refiners pivot to alternative supplies. Copper heads for new highs as US and Chinese demand squeezes LME inventories, raising the risk of another price spike. Ukraine's grain exports could fall by more than half after Russian attacks disrupted Black Sea ports. China booked 13 more US soybean cargoes, nearing a quarter of its purchase pledge target, though a Chinese diplomat called Trump's tariffs a "tortuous experience" for soybean trade. The refining crunch keeps fuel prices elevated even as crude retreats, benefiting US refiners but creating political problems for Trump. Phillips 66 expects soaring fuel margins to persist into 2027. ADNOC spent $1.3 billion to expand its tanker fleet, benefiting from surging UAE crude exports. Hindalco profit surged 75% after supply disruptions from the Middle East war drove metal prices higher. Fitch sees Chile's budget as key to halting its rising debt burden, skeptical that tax cuts will boost growth enough.

Policy & Regulation

The landmark crypto bill stalled in the US Senate despite a $225 million lobbying push, as lawmakers spar over legislation. Supporters argue the Clarity Act on digital assets is a matter of national security to prevent crypto activity from migrating beyond US law. The SEC dropped an insider-trading lawsuit against a former healthcare executive pardoned by Trump. The CFTC warned prediction markets to avoid American-style gambling odds as it fends off legal challenges. Trump restarted his battle to fire Fed Governor Lisa Cook, sending her a letter saying it is "considering" removing her. The Senate passed a sanctions bill targeting Russia and Iran, championed by the late Senator Lindsey Graham. Christopher Phelan was confirmed as chairman of the White House Council of Economic Advisers. The FAA ordered inspections of 471 Boeing 737 MAX jets after cracks were found in structural reinforcements. The Army opened test ranges to private industry to help break the munitions bottleneck. Meta was ordered to pay nearly $1 billion over social media harm to children in New Mexico. The FCA is cracking down on financial crime after the MFS collapse, demanding more information on fraud risks from unregulated entities. Britain curbed power exports to Europe to preserve supplies as the grid came under pressure during heatwaves. Exxon nears "peak impunity" on climate obligations, challenging EU carbon storage rules. The SEC climate rule shift sees US public pension funds and business groups clash, with Vanguard and Norway's sovereign wealth fund striking cautious responses.

Sectors & Corporate

Tech & AI: SoftBank used its OpenAI stake to borrow $10 billion, while its profit beat expectations with a boost from chip bets. Google shifted AI leadership back to Sergey Brin as Deep Mind's Demis Hassabis stepped aside. ByteDance is training an AI model three times larger than Moonshot's Kimi K3. Moonshot revamped its structure for a Hong Kong IPO to raise fresh funding. Situational Awareness bet $400 million on stealth chip startup Source Foundry after its AI-battered hedge fund suffered losses. SpaceX shares neared the $135 IPO price after staging a $327 billion rally, though SpaceX stock dipped on ballooning AI Bill costs. SK Hynix flash crash in Korea prompted Nextrade to tighten trading rules. VideoAmp cut staff as AI agents take center stage. Naver posted resilient Q2 profit despite higher AI costs. Take-Two logged higher sales but losses widened. Warner Bros sales fell on the loss of NBA rights and a weak film slate. Netflix tried to save its summer slump with a stunt on Sunset Boulevard. Nielsen agreed to buy Double Verify for $2.15 billion. WuXi AppTec got a temporary reprieve from its Chinese military label. Trip.com was fined RMB 5.18 billion for market abuse. Insurance and bank stocks slid amid China tax crackdown fears in Hong Kong.

Healthcare & Pharma:

Pfizer grapples with "a world of hurt" after its Covid triumph, facing sliding vaccine revenues and fears it overpaid for new drugs. Merck KGaA raised its full-year outlook on robust results. Amazon will offer GLP-1 weight-loss drugs to Medicare Part D patients at $50 a month.

Financials & Insurance:

Allianz profit hit a record as Pimco saw €32 billion in inflows. AIG profit beat estimates under new CEO Eric Andersen. MetLife earnings beat Wall Street expectations. Blackstone BDC profit dropped 94% as the value of holdings declined. DBS profit beat estimates and the Singapore lender raised guidance. Credit insurer Allianz Trade cut cover for UK housebuilder Vistry's suppliers. Mike Ashley said Harvey Nichols is in a "death spiral" even as he vies to acquire it. Germany's Munich Re cut its revenue outlook after July contract renewals saw volume and price declines. Canada's PSP is mulling a $1.5 billion sale of roads in India.

Consumer & Retail:

Wendy's withdrew its outlook and slashed its dividend as its turnaround struggles. Papa John's cut its outlook and suspended its dividend. Burger King's turnaround gained steam, powering Restaurant Brands' profit. Krispy Kreme narrowed its loss despite lower revenue. Sweetgreen lowered its full-year outlook due to a cyclosporiasis outbreak. Molson Coors sales fell amid demand challenges. Keurig Dr Pepper logged higher sales as separation work continues. Under Armour lowered its revenue outlook on soft demand. Instacart shares rose on higher revenue. Whatnot was valued at $20 billion in new funding. Zillow revenue jumped 18% as rentals offered a "bright spot." Wonder is gambling on robots, drones and AI-generated menus. Partners Group nears a €2 billion deal for beauty group Aroma-Zone. Sainsbury's needs a dose of Big Tech's boldness, the FT argues, as the UK's second-largest supermarket delivered terrestrial returns.

Energy & Industrials:

ConocoPhillips CFO will ascend to the top role, while CEO Ryan Lance steps down after 14 years. Consolidated Edison profit and revenue rose in Q2. Honeywell Aerospace shares plunged on supply chain woes, slashing its outlook. Suncor CEO Rich Kruger will step down next April. Goodwin Plc started a strategic review that may lead to a sale of a key business. Vistry faces a squeeze as credit cover is cut, while the UK housing market remains in "suspended animation." London housebuilders are finally catching a break, but merely returning to normal won't meet government targets. Apollo plans upmarket offerings for easy Jet under a £5.7 billion takeover. Ford plans a four-door Mustang for the first time. Volkswagen must cut costs faster to change, its chairman said. Singapore billionaire Lim Chap Huat sued Brookfield over an aborted real-estate joint venture. First Brands urged a court to approve a bankruptcy settlement to fund lawsuits pursuing billions in claims.