Last updated: August 9, 2026, 2:33 AM ET
Equities
U.S. stocks notched fresh records after a surprise contraction in July payrolls eased rate-hike fears, with the S&P 500 and Nasdaq capping their best week since April. The jobs data came in far weaker than expected, giving the Federal Reserve reason to hold off on raising interest rates next month and prompting traders to scale back their expectations. Blockbuster earnings from the U.S.’s largest companies have helped ease worries about AI spending and inflationary pressures, bolstering the market’s record run. European stocks also attracted investors as companies in the Stoxx Europe 600 are on track to deliver a 22% increase in profits in the second quarter, lifting sentiment above Iran war gloom.
The Dow industrials led U.S. stocks mostly lower in a jittery session amid doubts about the reopening of the Strait of Hormuz, while oil prices rose. Asian markets saw chip stocks slide as oil steadied with Hormuz talks advancing. South Korea’s volatility spike ebbed as a historic selloff flushed out leveraged positions, with regulatory curbs sending trading in some of the riskiest products plunging. UK equities surged, with one FTSE 100 fund rising 4 per cent even as the market contended with heatwave conditions.
Fixed Income & Credit
Short-term Treasuries capped their biggest weekly rally since May after the unexpectedly weak July employment report prompted traders to further dial back expectations for Federal Reserve interest-rate hikes. Treasury yields fell after the economy lost 23,000 jobs in July, according to the Bureau of Labor Statistics. A US Treasury debate sparked over auction cutbacks to temper yields, challenging an article of faith about the world’s biggest bond market. Japanese government bonds extended their rally, tracking overnight Treasury gains.
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, a shift underscoring the stark realities of higher-for-longer interest rates. A credit insurer is set to cut cover for UK housebuilder Vistry’s suppliers, potentially exacerbating a squeeze on cash flow. CMBS investors are pushing back against AI debt, growing increasingly wary of the borrowing tech companies are using to fund their artificial intelligence investments.
Commodities & Energy
Oil futures settled higher on Friday but finished down on the week, with WTI up 1.2% at $78.18 a barrel and Brent rising 1.3% to $83.55, though both posted significant weekly losses. Analysts remain stumped by the case of the missing barrels in the global market. Iran’s oil exports have stalled and Kharg Island idled under a US blockade, with naval interdiction appearing to halt tankers from carrying Tehran’s crude. A war-induced diesel squeeze is setting the stage for an even worse crunch as demand rises ahead of the Northern Hemisphere winter.
Gold jumped more than 3% after an unexpected contraction in the US jobs market extended a rebound from its slump below $4,000 an ounce. China’s central bank extended its gold buying streak to 21 months, ramping up additions last month and pushing bullion prices above $4,000 an ounce. The central bank is also stockpiling more gold in Hong Kong, supporting the city’s push to become a major bullion-trading hub. Copper headed for a record close in London on tight supply, as a two-way pull depleting LME inventories raised the risk of another spike in futures contracts. A copper market crunch is brewing as the US and China compete for metal, with a surge in shipments to the US and rising orders in China setting the stage for a rally.
U.S. natural gas futures posted their seventh consecutive weekly loss as strong production and soft LNG feedgas offset high seasonal power-sector demand. Global food prices edged higher in July to the highest in more than three years, as renewed concerns over key grain export corridors compounded adverse weather across major growing regions. A solar eclipse threatens to tighten Europe’s electricity squeeze, with the continent’s power system already under stress from heatwaves.
Currencies & Intervention
The dollar hit a seven-week low against a basket of currencies after data showed an unexpected decline in U.S. nonfarm payrolls in July. Hedge funds sharply reduced bearish bets on the yen after coordinated efforts by US and Japanese officials helped stabilize the currency. Goldman Sachs is skeptical that US support for Japan’s yen-prop efforts will damage the dollar’s status as the most dominant reserve currency. The US intervention in the yen, like its support for the Argentine peso, appears driven by reasons that are not solely economic.
Currency interventions have a mixed record, with the lesson that you can’t fight macro with FX interventions. The US bares its financial weak spot through its yen intervention, pointing to the squishy underbelly of American weakness. Bonds and the dollar were weighed down by Washington policy decisions, prompting investors to ponder whether the ‘Sell America’ trade is back.
Deal-Making, IPOs & Private Markets
Private-equity firms, eager for exits, are pouncing on the hot IPO market as sluggish dealmaking has made it hard to find buyers. SpaceX nears its IPO price again after staging a $327 billion rally, with shares jumping for a second straight day and bringing them close to breaking back above the company’s $135 initial public offering price. SpaceX shares climbed as investors digested the release of as many as 911.5 million shares worth about $100 billion from lock-up agreements. The company’s next big test is the $101 billion unlock, with analysts questioning whether Elon Musk can execute on highflying promises made in the lead-up to the biggest IPO ever.
Whatnot, a fast-growing live-shopping platform, has nearly doubled its valuation to $20 billion in less than a year. A stealth chip startup aiming to reinvent how chips are manufactured received a $400 million bet from AI-battered hedge fund Situational Awareness. Lumilens, which makes optical gear to speed up data flowing between AI servers, raised $700 million at a $5.5 billion valuation. Nielsen agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion.
Greg Abel, Berkshire Hathaway’s chief, finally put the company’s cash pile to work, ending a more than three-year selling streak as he ploughed a net $20 billion into stocks. Canada’s PSP is said to mull a $1.5 billion sale of roads in India. AI Financial Corp., a fintech that soared after signing a deal with the Trump family’s crypto platform, sold its core business for $12 million. Hargreaves Lansdown ordered staff back to the office three days a week.
Earnings Highlights
DraftKings posted a second-quarter loss of $67.6 million, compared with a profit of $157.9 million a year earlier, with revenue hurt by promotions. Option traders had piled into bullish wagers ahead of the report. Peloton Interactive forecast a revenue decline for fiscal 2027 as subscriber losses continue to deepen. Instacart shares rose after revenue increased to $1.04 billion, beating expectations of $1.03 billion.
Lyft’s second-quarter gross bookings rose to $5.5 billion, but the company expects current-quarter bookings to rise at a slower pace of 15% to 19%. Burger King’s turnaround gained steam, powering Restaurant Brands International’s profit in the second quarter. Krispy Kreme narrowed its loss and expanded margins during its latest quarter. Under Armour lowered its revenue outlook after traffic trends weakened in North America and the Asia-Pacific region.
Honeywell Aerospace shares plunged after the group slashed its outlook as bottlenecks limited the ability to convert strong demand into sales. ConocoPhillips chief Ryan Lance is stepping down after 14 years as profits climb on a war-driven price surge. Allianz posted an 11% rise in group operating profit, reaching a new record as it reshapes its portfolio. Consolidated Edison reported a second-quarter profit of $308 million, up from $246 million a year earlier.
Warby Parker swung to a second-quarter profit, helped by a tariff refund. Hindalco Industries profit jumped 75%, beating estimates after supply disruptions from the Middle East war drove metal prices higher. State Bank of India reported better-than-expected profit in its first quarter, benefiting from strong credit growth. BlackRock’s Rieder sees AI helping buoy GDP even as hiring slows, arguing the US economy remains on track for 6% growth.
Sector & Market Structure
Shares of memory giants dropped on soft guidance, while Six Flags shares slid after revenue and attendance fell short of estimates. Chinese solar stocks were whipsawed by a combination of domestic efforts to end below-cost sales and renewed tariff threats from the US. Chile’s budget is key to halting a rising debt burden, according to Fitch Ratings, which is skeptical that recently approved tax cuts will boost growth by enough to offset the immediate drop in revenue.
The worst-ever Brazil market outage put B3’s near-monopoly in focus, with the disruption just the latest over the past year to bedevil investors. India’s new auction system for setting closing stock prices faced a shaky week, with traders convinced one of the most consequential market structure reforms in years was faltering. The first weekly expiry for the BSE Sensex Index under the new methodology passed largely without disruption, easing concerns after the turbulent debut. Asian firms led a record $83 billion of share sales in July, with blockbuster sales from AI-related companies in the Asia Pacific despite weakness in the region’s stock market.
Regulation, Policy & Crypto
A landmark crypto bill stalled in the US Senate despite a $225 million spending push, as lobbyists struggled to pass their top priority. The CFTC warned prediction markets on American-style casino odds as the regulator fends off legal challenges. DraftKings CEO blasted prediction bets on earnings call comments, saying he doesn’t think it is good for bettors to place wagers on what executives say. The SEC dropped an insider-trading lawsuit against a former healthcare executive who was convicted in a related criminal case and then pardoned by President Trump.
Turkey’s cyber law shifts sweeping powers to the presidency, raising concern about ‘absolute digital obedience’ among social media and gaming platforms. The US Treasury sparked debate over auction cutbacks, challenging an assumption about the government’s bond sales. Meta was ordered to pay nearly $1 billion in penalties over social media harm to children. Burger King’s new Whopper struck a blow in the fast-food burger wars, with the company president saying the revamped burger is helping win market share.
Geopolitics & Trade
Iran demanded a US withdrawal to open the Strait of Hormuz, with a top official laying out tough demands and the UAE reporting a missile attack on one of its ships. The US is burning through weapons in Iran, with Russia and China taking note as a more drawn-out conflict benefits Moscow and Beijing. Saudi Arabia, Turkey and Pakistan signed a defence pact in Mecca, seeking to deepen regional security co-operation. Yemen teeters on civil war as the conflict with Iran-backed Houthi rebels escalates alongside the Hormuz stalemate. Houthi attacks on Yemeni military camps threaten to reignite civil war, imperiling a fragile truce.
Canada offered US concessions in trade talks but demands a comprehensive deal, as Prime Minister Mark Carney attempts to prevent 50 percent tariffs against many Canadian goods. Trump tariffs created a “tortuous experience” for soybean trade, a Chinese diplomat said, disrupting flows between the world’s two largest economies. China’s export boom rolls on despite a trade backlash, with factories finding eager buyers abroad even as weak consumer spending and a property slump weigh on growth at home. The Senate passed sanctions targeting Russia and Iran, championed by the late Senator Lindsey Graham.
Corporate & Industry News
SpaceX’s selling of the dream was the easy part; now Elon Musk has to hang on after a $300 billion swing in market value. Mike Ashley said Harvey Nichols is in a “death spiral,” casting doubt over the department store chain’s prospects even as he vies to acquire it. Apollo’s upmarket plans for easy Jet include premium seats and more charges, with the airline offering extra services and feeding long-haul carriers. Volkswagen must cut costs faster to change, its chairman said, urging Europe’s biggest carmaker to move quickly on cutting excess capacity.
Pfizer grapples with “a world of hurt” after its Covid triumph, with sliding vaccine revenues and fears it overpaid for new drugs piling pressure on its boss. Goodyear, the UK’s Goodwin Plc, started a strategic review that may lead to the sale of a large chunk of a key business, while its defence business has received bids from buyout firms. Wonder is taking a gamble on robots, drones and AI-generated menus, infusing automation into everything from cooking to delivery. Ford plans a four-door version of the Mustang, which would be a first for the automaker’s “pony car.”