Last updated: August 8, 2026, 8:33 PM ET
Public Markets
Equities
U.S. stocks notched fresh records Friday after a surprisingly weak July jobs report sent rate-hike expectations tumbling, with all three major indexes rallying and the S&P 500 and Nasdaq capping their best week since April. The S&P 500 rose 0.8% to a new all-time high after the economy lost 23,000 jobs in July, far below consensus estimates, while traders scaled back expectations for near-term rate increases. The July payroll data came in far weaker than expected, giving the Federal Reserve reason to hold off on raising rates next month, and the S&P 500 posted its best week since April on the news as bond yields fell.
Big Tech stocks stormed back this week as AI fears faded and euphoria resumed, with the world's largest technology companies leading a market surge after spending much of the year in the doghouse over concerns about their profligate spending on artificial intelligence. Traders flocked to S&P 500 call options as the rally broadened, a gauge that had for months been in the shadow of its more volatile rival, the Nasdaq. Take-Two Interactive logged higher fiscal first-quarter sales but losses widened due to discontinued development of a title in its pipeline.
Under Armour lowered its revenue outlook on soft demand, saying traffic trends weakened as the latest quarter progressed, especially in North America and the Asia-Pacific region, prompting the company to step up its promotional efforts. Wendy's withdrew its outlook and slashed its quarterly dividend as the company's turnaround struggles to pick up steam. Monster Beverage sales rose 20% in the second quarter driven by growth among customers outside the U.S.
Naver posted resilient second-quarter earnings despite higher AI-related costs, supported by solid growth in its core search platform and e-commerce businesses. Airbnb boosted its full-year forecast on strong demand as AI bets pay off, now expecting revenue to increase by at least a mid-teens rate this year. AIG profit beat estimates, citing strong underwriting, roughly two months after Eric Andersen took over as chief executive officer.
Kenvue posted higher profit and sales in the second quarter as the company continues working to turn around its business ahead of its acquisition by Kimberly-Clark. Molson Coors second-quarter sales fell 3.3% to $3.1 billion as the company tries to balance sluggish customer demand with higher supply costs. WPP shares surged after a turnaround helped ease its top-line decline, with revenue less pass-through costs falling less sharply thanks to a recovery in its media-buying operations.
Diageo boss Dave Lewis staked the company's revival on canned cocktails and Guinness, unveiling plans to restore growth along with a suite of cost cuts. SoftBank used its OpenAI stake to borrow $10 billion, as the Japanese technology investment company vowed to become a leading builder of AI data centers and a major investor in AI-powered robotics. Berkshire Hathaway chief Greg Abel ended a more than three-year selling streak as he ploughed a net $20bn into stocks, finally putting Warren Buffett's massive cash pile to work.
Ford plans a four-door version of the Mustang, a design first for the automaker's "pony car" that could broaden its consumer appeal. America's EV honeymoon is over, as drivers who got hooked on great lease deals are now looking at hybrids and gas cars or just paying higher prices. Wonder is taking a gamble on robots, drones and AI-generated menus with the goal to help its food halls lower prices enough to compete with restaurant takeout.
Fixed Income & Monetary Policy
Treasury yields fell Friday after a weaker-than-expected jobs report from the Bureau of Labor Statistics showed the economy lost 23,000 jobs in July. The bond market is signaling rising risks that investors should listen to, as yields moved higher even without a Fed rate hike, meaning hardship for home buyers and higher hurdles for AI data centers and the stock market. Bond investors were bracing for the labor market data, which could cool growing expectations the Federal Reserve raises interest rates at its next meeting in September.
The US Treasury sparked debate this week about something that has for years been an article of faith about the world's biggest bond market: that the government's auctions of notes and bonds will just have to keep getting bigger. Puerto Rico's capital San Juan triggered a rush for its $121 million muni-bond sale this week, as investors seized a rare opportunity to get exposure to the island. Once-AAA bonds on a New York megamall face a $350 million loss as Pyramid Management Group buys back the mortgage for cents on the dollar.
At the Fed, Kevin Warsh can't referee his way out of inflation, and the success of his chairmanship may rest on the nation's ongoing fiscal deficits — an issue that sits outside the traditional purview of monetary policy. Trump restarted his battle to fire Fed Governor Lisa Cook, sending her a letter saying it was "considering" removing her from the job after being rebuffed by the Supreme Court in its first attempt. The weak jobs report does not eliminate prospects of an interest rate rise, as officials at the Fed are chiefly focused on the trajectory of inflation after five years of overshooting the central bank's 2 percent target.
The jobs report poses a new test for Warsh and the Fed, coming as investors increasingly expect the central bank to begin raising interest rates as soon as next month. Dollar hedging costs jumped as Warsh ditched Fed rate guidance, leaving Wall Street guessing at his next move ahead of the payroll numbers. Fitch Ratings is skeptical that tax cuts approved by Chile's Congress last month will boost growth enough to offset the immediate drop in revenue.
Currencies & Intervention
The dollar ended the week at its lowest since May as rate-hike bets faded after soft US labor data reduced expectations that the Federal Reserve will raise rates in the near term. The dollar notched its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East. Currency interventions have a mixed record, and you can't fight macro with FX interventions.
Hedge funds sharply reduced bearish bets on the yen after coordinated efforts by US and Japanese officials helped stabilize the currency. The yen surged against a weaker dollar after an unexpectedly soft US payrolls report on Friday, with traders on alert for any sign authorities were preparing to intervene again. Yen intervention illustrates the dangers of monetary experiments, as Tokyo and Washington's desire to maintain stability may be creating long-term danger.
The Colombian peso continues to be the best performing currency in emerging markets as investors shrug off the central bank's efforts to slow the currency's rally and instead focus on its carry appeal. India's forex reserves are expected to swell to a near-record high within weeks, driven by stronger capital inflows following a series of central bank measures.
Commodities & Energy
Oil futures settled higher Friday, but finished down on the week with WTI up 1.2% at $78.18 a barrel yet down 7.7% for the week, while Brent rose 1.3% to $83.55 for a 5% weekly loss. Crude retreats but fuel prices stay high as US refineries cash in while consumers face rising diesel and petrol costs. A diesel squeeze spurred by wars in the Middle East and Ukraine is setting the stage for an even worse crunch as demand rises ahead of the Northern Hemisphere winter.
US natural gas futures posted their seventh consecutive weekly loss as strong production and soft LNG feedgas offset high seasonal power-sector demand. "Refine, Baby, Refine" is the energy industry's new mantra as America's fuel-makers are maxed out trying to fill in the gaps of the global fuel supply crunch.
Iran's oil exports have stalled and Kharg Island idles under a US blockade, as naval interdiction appears to be halting tankers from carrying Tehran's crude. The UAE's Adnoc bought tankers for $1.3 billion as crude exports boom after the country left OPEC. The Gulf's "Little Sparta" is taking on the oil world, with the UAE backing state-oil company Adnoc to set a more assertive and expansive course.
Ukraine's grain exports could slump by more than half this season after Russian attacks disrupted Black Sea ports, threatening the country's biggest source of export revenue. Lumber prices surged despite a housing slump, while the US is also banning exports of lithium ion battery and tungsten waste. Rising cocoa prices are pushing processors outside the candy aisle as they find new uses for leftover materials.
Trump refunded $4 billion to cancel US offshore wind projects, including a $1.22 billion settlement with German utility RWE AG announced Thursday. Mexico deployed hundreds of troops to secure avocado heartlands in Michoacán state after violence prompted the US to withdraw its inspectors and suspend imports of the fruit.
Private Credit, IPOs & Deal Activity
Private credit is being squeezed by bank refinancings as highly-indebted companies increasingly ditch private credit loans for cheaper capital in the bank loan market, underscoring the stark realities of higher-for-longer interest rates. Gainwell Technologies kicked off a $5.8 billion debt overhaul that would be the US software sector's biggest of 2026. BlackRock's BDC moved $523 million in loans to a Pantheon-backed fund, involving nearly half of BlackRock TCP Capital's debt investments.
Shopping app Whatnot was valued at $20 billion in new funding, nearly doubling its valuation in less than a year. Private-equity firms eager for exits are pouncing on the hot IPO market, taking companies public as sluggish dealmaking has made it hard to find buyers. Dream Finders Homes agreed a roughly $916 million deal to buy rival Beazer Homes USA Inc.
China's Unitree Robotics priced its IPO, aiming to raise about $900 million in a bet that investors are ready for humanoid robots. Kirin Holdings shares rose 2.4% to near record levels after it announced a $1.4 billion deal to acquire Toronto-based Jamieson Wellness Inc. Airtable's cut-price sale to Bending Spoons for just under $2.3 billion is just the start for software also-rans.
SpaceX neared its $135 IPO price again after staging a $327 billion rally, with shares jumping for a second straight day. Paramount agreed safeguards for UK approval of its $110 billion WBD deal, with David Ellison making commitments on news provision, investment and programming. Fox will keep its NFL rights deal through 2029 after the league had been trying to renegotiate before an opt-out clause.
Crypto trader Wintermute stepped onto regulated Wall Street with a broker license, aiming to take on Jane Street, Citadel and other big market makers. A landmark crypto bill stalled in the US Senate despite a $225 million spending push by lobbyists. A tough week for crypto had fans downing drinks at a Bitcoin bar, even as a BTC cold wallet hack bolstered the case for use of spot crypto ETFs.
Global & Sector Markets
Canada's PSP is said to mull a $1.5 billion sale of roads in India as the Public Sector Pension Investment Board explores options. Japan's pension whale GPIF posted a record $152 billion gain in the three months ended June as global and domestic stocks rallied, offsetting weakness from government bonds. Taiwan's $49 billion public-sector pension fund will tap third-party managers for stock bets to boost its exposure to global markets.
Top Japan insurer Daiichi Life Group 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. Wellington funds pivoted from Treasuries to what they see as the "most credible" debt in German bonds after last week's Fed meeting fueled doubts about its inflation-fighting credentials.
Where REIT investors have earned the best returns is in the US market over the past 10 years, led by funds focused on data centers. Retirees love dividends, but the stock market surge is making them think again as the S&P 500 dividend yield sits near generational lows. Situational Awareness bet $400 million on stealth chip startup Source Foundry, which aims to reinvent the way chips are manufactured.
Commerzbank's CEO called for dialogue with UniCredit after the Italian bank achieved a near majority stake in its German rival. The worst-ever Brazil market outage put B3's near-monopoly in focus, as the latest disruption bedeviled investors in Latin America's biggest economy. Zimbabwe's VFEX plans a $5 billion market value and a venture board for mining as it rolls out new products.