Public Markets 3 Days

Last updated: August 9, 2026, 8:32 AM ET

Equities

U.S. stocks notched a fresh record Friday, with the S&P 500 and Nasdaq capping their best week since April after a weaker-than-expected July payrolls report eased rate-hike fears. All three major indexes rose, and traders scaled back expectations for another Fed hike, sending stocks higher. The blockbuster earnings season has helped underpin the rally, with results from the largest U.S. companies easing worries about AI spending and inflation. Bank of America’s sentiment gauge hit its most extreme bullish level since 2021, prompting strategists to flag it as a contrarian sell signal. Meanwhile, Wall Street’s risk complex surged anew as a deluge of fresh cash flooded markets.

European Equities

European stocks continued to fire on all cylinders, drawing money managers who believe the rally is more durable than a short-term trade. The Stoxx 600 rose for a fourth straight week as a stronger-than-expected earnings season lifted regional benchmarks to records; companies are on track to deliver a 22% increase in profits in the second quarter. UK shares also outperformed, with the FTSE 100 gaining 4% over the past week. European indexes edged higher in muted early trade ahead of U.S. jobs data and Middle East talks. In London, Hargreaves Lansdown ordered staff back to the office three days a week, while Sainsbury’s was urged to adopt Big Tech-style boldness.

Asia-Pacific Equities

Asian markets were mixed. South Korea’s stock-market turmoil eased after a historic selloff flushed out leveraged positions and regulatory curbs slowed riskier products. A Lazard Asset Management fund manager added Samsung Electronics to her portfolio during the July memory rout. SK Hynix led a record $83 billion of share sales by Asian firms in July, despite market volatility. India’s top bank, State Bank of India, reported better-than-expected net income on strong credit growth. However, Indian shadow lender Bajaj Finance shares fell after the central bank proposed tighter revolving credit rules. The Philippine economy grew at its slowest pace since 2009 excluding the pandemic, dragged by Middle East conflict and inflation.

Fixed Income & Credit

Treasury yields fell Friday after the July jobs report showed the economy lost 23,000 jobs, weakening expectations for rate hikes. Japanese government bond yields presented a curious case, with the 15-year not as high as it appears. Japan’s four largest life insurers reported that combined unrealized losses on domestic bonds rose 7% in Q2, totaling $96 billion. Meanwhile, Japanese companies have already sold more corporate bonds with investor protection this year than in all of 2025. In the private-credit space, highly-indebted companies are ditching private loans for cheaper bank loans, while managers’ liquidity definitions vary widely. A once-AAA bond on a Syracuse megamall faces a $350 million loss as the developer buys back the mortgage for cents on the dollar. Puerto Rico’s capital San Juan saw blowout demand for its $121 million muni-bond sale. Wellington Asset Management reduced exposure to U.S. Treasuries and shifted into German bonds after Fed doubts.

Currencies & FX

The yen surged 1% against the dollar after the weak U.S. jobs data, with markets speculating about further intervention. Japan confirmed it intervened three times during the spring Golden Week holiday to prop up the yen. Hedge funds sharply reduced bearish bets after coordinated U.S.-Japan efforts. Goldman Sachs said U.S. support for yen intervention is unlikely to threaten the dollar’s reserve status, but the FT argued such intervention illustrates dangers of monetary experiments. Emerging Asian central banks are finding ways to support currencies without dipping into reserves. India’s foreign exchange reserves are expected to swell to a near-record high. The FT’s Alphaville noted that currency interventions have a mixed record.

Commodities

Oil futures settled higher Friday but posted a weekly loss: WTI up 1.2% at $78.18, down 7.7% on the week; Brent up 1.3% to $83.55, down 5%. Natural gas futures extended losses to seven weeks. A diesel squeeze from wars in the Middle East and Ukraine is setting up a winter crunch. The energy industry’s new mantra is “refine, baby, refine” as U.S. fuel-makers max out. Copper headed for a record close on tight global supply, with a market crunch brewing as the U.S. and China compete. China’s key steel price fell to a near-decade low on construction slump. Global food prices rose to a three-year high amid heatwaves and conflict. Iran’s oil exports have stalled and Kharg Island idles under the U.S. blockade. Mexico deployed troops to secure avocado heartlands after U.S. suspended imports. BHP’s Port Hedland faced rolling 24-hour strikes by union workers.

Economy & Policy

China’s inflation cooled more than expected in July, with consumer and factory-gate prices both decelerating, reflecting tepid demand and easing oil costs. The labor market shifted into reverse as employers balked at hiring, with a spring surge fading. The Senate passed a stopgap bill to avert a shutdown, avoiding a pre-midterm fight. The U.S. natural gas market saw continued losses. Trump signed executive orders targeting birthright citizenship after the Supreme Court blocked previous efforts.

Sector Focus: Autos, Energy, Tech & Media

Asian carmakers are cashing in as high petrol prices lift U.S. demand for hybrids, with sales jumping a fifth in July. Volkswagen’s major shareholder Porsche SE called for a faster overhaul after a $3.5 billion impairment hit. Ford plans a four-door Mustang for the first time. In energy, Exxon nears peak impunity on climate obligations, challenging EU carbon storage rules. U.S. natural gas futures posted a seventh consecutive weekly loss. In tech and media, Take-Two Interactive reported higher sales but wider losses. Airbnb boosted its full-year forecast on strong demand as AI bets pay off. DraftKings CEO Jason Robins blasted prediction bets on earnings calls. The CFTC warned prediction markets against using American-style casino odds. A landmark crypto bill stalled in the Senate despite a $225 million lobbying push.

IPO & Private Markets

SpaceX shares neared their $135 IPO price again after a $327 billion rally, but Elon Musk faces execution risk. Whatnot nearly doubled its valuation to $20 billion in new funding. Private-equity firms are aggressively taking companies public amid a hot IPO market. Marinas have emerged as a hot asset class for private equity due to dependable cash flow. Unitree Robotics plans a $900 million IPO to test market interest in humanoid robots. The AI bond buildout era is ending as hyperscaler debt funding gets pricier.

Emerging Markets

Indonesia, one of the world’s biggest coal producers, battles blackouts after price caps discouraged local supply. Cuba is counting on solar power, with China’s help, as oil runs low. Venezuelans protested daily blackouts in Caracas. Chile’s budget is key to halting its rising debt burden, Fitch said. Romania extended nuclear reactor output after Danube blasts. Canada’s PSP mulls a $1.5 billion sale of roads in India. China’s solar stocks were whipsawed by domestic policies and U.S. tariffs. Shanghai seeks to extend commercial land leases. Trip.com Group was fined RMB5.18bn for market abuse. WuXi AppTec got a temporary reprieve from a Chinese military label.

Central Banks & Monetary Policy

The Fed faces a new test from the jobs report, with investors increasingly expecting rate hikes as soon as September. Trump restarted his battle to fire Fed Governor Lisa Cook, sending her a letter saying he is “considering” removal. The Senate confirmed Christopher Phelan as chairman of the Council of Economic Advisers. Todd Blanche was confirmed as attorney general despite concerns about Trump’s sway over the Justice Department. The Bank of Japan’s neutral rate may have moved up slightly. Japan’s GPIF posted a record $152 billion gain on stock rallies. India’s bullion exchange CEO resigned, a setback for the platform.