Public Markets 3 Days

Last updated: August 9, 2026, 11:32 AM ET

U.S. Stocks

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. All three major indexes rose, with the S&P 500 and Nasdaq capping their best week since April after July payroll data came in far weaker than expected. U.S. stocks rose Friday as that data gave the Federal Reserve reason to hold off on raising interest rates next month. A Wall Street risk complex surged anew amid a deluge of fresh cash, with the financial world's catalog of complaints receiving an increasingly indifferent response in markets. Investor bullishness has become so extreme that it’s time to start reducing exposure to risky assets, according to Bank of America strategists. Stock funds are up 10.6% so far in 2026 amid AI volatility.

Fixed Income & Currencies

Treasury yields fell after the economy lost 23,000 jobs in July, while Wall Street traders say US Treasury Secretary Scott Bessent is sending fresh signals that he’s eager to keep bond yields from spiking higher. The US Treasury sparked debate this week over auction cutbacks to temper yields. The bond market is signaling rising risks, with hardship for home buyers and lower hurdles for A.I. data centers, though it is a boon for retirees. The dollar fell to its lowest since May after soft US labor data reduced expectations of a near-term Fed rate hike. The dollar also fell to a seven-week low against a basket of currencies. The yen surged 1% against the dollar after the US jobs data, with markets speculating on possible intervention. Hedge funds sharply reduced bearish bets on the yen after coordinated efforts by US and Japanese officials stabilized the currency. US support for Japan’s efforts to prop up the yen is unlikely to damage the dollar's status as the dominant reserve currency, according to Goldman Sachs. Japan confirmed a three-day yen intervention in the spring to prop up the currency, going beyond its recent playbook. The real reason behind Trump’s yen intervention is not solely economic.

Energy & Commodities

Oil futures rose 1.2% on Friday to settle at $78.18 a barrel, but finished down 7.7% for the week amid Strait of Hormuz tensions. A refining crunch is keeping fuel prices high even as crude retreats, benefiting US refiners. The "refine, baby, refine" mantra is the energy industry's new approach as American fuel-makers max out to fill global supply gaps. U.S. natural gas futures posted their seventh consecutive weekly loss as strong production offset high seasonal demand. A diesel squeeze spurred by wars in the Middle East and Ukraine is setting the stage for an even worse winter crunch. China’s inflation eased as the Iran war oil shock began to recede. The copper market is tightening fast, with a surge in shipments to the US and rising orders in China setting the stage for a rally. Copper headed for a record close on signs of tighter supply. Global food prices edged higher in July to the highest in more than three years due to adverse weather and conflict concerns. A key Chinese steel product price dropped to the lowest in almost a decade. Chinese solar stocks were whipsawed by domestic policies and US tariff threats on polysilicon.

European Markets

Europe’s stock market is firing on all cylinders, drawing money managers who say this rally will be more durable than a short-term trade. European stocks rallied as strong earnings lifted gloom from the Iran war, with Stoxx 600 companies on track for a 22% increase in second-quarter profits. The benchmark European indexes edged higher in cautious early trade, gaining for a fourth consecutive week on a stronger-than-expected earnings season and growing M&A chatter.

Asian Markets & Emerging Economies

Asian carmakers are cashing in as high petrol prices lift US demand for hybrids, with sales jumping by a fifth in July. Central banks in emerging Asia are finding new ways to support their currencies without dipping into foreign-exchange reserves. South Korea's stock-market turmoil may be over after a historic selloff flushed out leveraged positions. Japan’s four largest life insurers reported combined unrealized losses on domestic bonds increased 7% in the three months through June. Japan’s GPIF posted a record $152 billion gain on its stock rally in the quarter ended in June. Philippine economic growth dramatically slowed in the second quarter. India’s forex reserves are expected to swell to a near-record high driven by stronger capital inflows.

Tech, Crypto & Special Situations

The leveraged ETF boom is creating new ways to profit from sudden bursts of volatility in tech stocks. AI-battered hedge fund Situational Awareness bet $400 million on a stealth chip startup. SpaceX shares jumped, nearing their $135 IPO price after a $327 billion rally. Elon Musk now has to execute on high-flying promises made in the lead-up to the record-setting IPO. Kalshi’s co-founder Tarek Mansour declined management advice as his prediction market grew. A tough week for crypto sent traders to a Bitcoin bar. A fintech that soared on Trump, AI Financial Corp, sold its core business for $12 million.

Central Banks & Macro

The weak jobs report does not eliminate prospects of an interest rate rise, as the Fed is focused on the trajectory of inflation. The jobs report has high stakes for investors, with traders watching for clues to the Fed’s next move. The labor market shifted into reverse as a spring surge faded and employers balked at hiring. Trump restarted a battle to fire sitting Fed Governor Lisa Cook after the Supreme Court rebuffed his first attempt. BlackRock’s Rick Rieder said the surprise contraction in payrolls reflects a "productivity revolution" from AI. The jobs report poses a new test for Fed Chair Warsh and the central bank. Todd Blanche was confirmed as Attorney General, with senators endorsing a Justice Department under Trump’s sway despite unease about his willingness to rein in the president. The SEC dropped an insider-trading suit against an executive Trump pardoned.

Geopolitics & Trade

Iran, holding firm to the Strait of Hormuz, pushes for a return to a June MOU, using its position as leverage to get Washington to release frozen assets and end its naval blockade. Tehran says the US must "rectify its behaviour" before it reopens the strait, with a senior official wanting compensation for war damage. A top Iranian official laid out tough demands, and the UAE said Iran launched a missile attack on one of its ships. Israel rejected Trump’s 15-point plan to disarm Hamas. The US is burning through weapons in Iran, and Russia and China are taking note. Romania extended a nuclear reactor's output after Danube blasts. Turkey resumed allowing ship transits through its straits to the Black Sea after unexplained delays. Ukraine struck two Russian oil refineries while Kyiv was also hit. A landmark crypto bill stalled in the US Senate despite a $225 million spending push. Trump tariffs have been "tortuous" to the soybean trade, a Chinese diplomat said.

Corporate & Deal-Making

Berkshire Hathaway chief Greg Abel ended a more than three-year selling streak, ploughing a net $20 billion into stocks. Barrick Gold's chairman John Thornton faced investor backlash as he drove a reinvention of the miner. Whatnot nearly doubled its valuation to $20 billion in less than a year. Gainwell Technologies kicked off a $5.8 billion debt overhaul, the year's biggest in US software. Highly-indebted companies are increasingly ditching private credit for cheaper bank loans. Private-credit managers report liquidity differently, with some using aggressive math to project strength. Allianz posted an 11% rise in group operating profit, reaching a new record as it turned to dealmaking. Apollo's plans for easy Jet include premium seats and more charges. First Brands urged a court to approve its bankruptcy settlement. The UK manages a record share of assets on behalf of overseas clients. The leveraged-loan market braces for momentum after the great deleveraging.