Public Markets 3 Days

Last updated: August 9, 2026, 5:32 PM ET

Equities

Wall Street capped a strong week as a blockbuster earnings season helped ease worries about AI spending and inflation. All three major indexes rose Friday, with the S&P 500 and Nasdaq notching their best week since April after a surprise US job loss report prompted traders to scale back rate-hike expectations. Stock funds are up 10.6% so far in 2026 after a turbulent month dominated by AI volatility. The rally has been fueled by fresh cash inflows, with the Wall Street risk complex surging anew as investor bullishness reaches its most extreme level since early 2021, according to Bank of America strategists who now recommend reducing exposure. The leveraged ETF boom is creating new ways to profit from sudden volatility bursts in tech stocks, intensifying intraday momentum plays.

European markets also extended their gains, rising for a fourth straight week on the back of a stronger-than-expected earnings season and growing M&A chatter. Investors have returned to European stocks as strong earnings lift Iran war gloom, with Stoxx 600 companies on track for a 22% second-quarter profit increase. The region's "hot stock markets" are creating a durable buzz among money managers. UK equities have also rallied, with one fund manager noting a 4% rise in his FTSE 100 holdings during a heatwave holiday.

In Asia, Japan’s Government Pension Investment Fund posted a record ¥23 trillion ($152 billion) gain in the June quarter as global stocks rallied. South Korea’s market volatility eased after a historic selloff flushed out leveraged positions, while a Lazard fund manager added Samsung Electronics during the memory rout. Asian firms led a record $83 billion in share sales last month, with SK Hynix among the biggest issuers.

Fixed Income

U.S. Treasury yields fell after the July jobs report showed the economy lost 23,000 jobs, with the jobs report posing a new test for Fed Chair Warsh and the central bank. Wellington Asset Management has reduced its exposure to Treasuries, shifting into German bonds after doubts about the Fed’s inflation-fighting credentials. Japan’s four largest life insurers reported combined unrealized losses on domestic bonds of $96 billion, showing the risks from rising rates. Meanwhile, Japanese companies have already sold more covenant-protected bonds this year than in all of 2025 as lower-rated borrowers tap the market. In municipal bonds, San Juan saw blowout demand for its $121 million sale, while once-AAA rated bonds on a Syracuse megamall face a $350 million loss. Fitch Ratings warned that Chile’s budget discipline is key to halting its rising debt burden.

Currencies

The yen surged 1% against the dollar after the US jobs data, with intervention speculation resurfacing. Japan confirmed it intervened three times during the spring Golden Week holiday to prop up the yen, going beyond its usual twin-punch playbook. Goldman Sachs is skeptical that such yen support will threaten dollar dominance. The US bolstering of the yen has geopolitical as well as economic motives, according to an analysis of Trump’s intervention. Emerging Asian central banks are finding ways to defend currencies without dipping into foreign-exchange reserves, given Middle East tensions and higher-for-longer rate prospects. India’s forex reserves are expected to rise to a near-record high within weeks, driven by capital inflows.

Commodities

Oil futures settled higher Friday but posted weekly losses, with WTI down 7.7% for the week and Brent losing 5%, as Middle East supply disruption concerns competed with demand fears. A diesel squeeze from wars in the Middle East and Ukraine is setting the stage for an even worse winter crunch. American fuel-makers are maxed out as they try to fill gaps in the global fuel supply, adopting a "refine, baby, refine" mantra. Iran’s oil exports have stalled and Kharg Island is idle under the US blockade. Copper is heading for a record close in London as the global market tightens, with a crunch brewing as the US and China compete for metal. A key Chinese steel price dropped to a near-decade low on construction slump. Union workers at BHP’s Port Hedland iron ore hub began rolling strikes in a pay dispute.

Macro & Policy

The US labor market shifted into reverse in July, with the economy losing 23,000 jobs, giving the Federal Reserve reason to hold off on raising rates next month, though Warsh’s less-guidance stance is testing bond markets. The Senate passed a stopgap spending bill to avert a shutdown, avoiding a pre-midterm fight. Christopher Phelan was confirmed as CEA chairman. UK Treasury officials are concerned that Prime Minister Burnham’s talk of fiscal “flexibility” could backfire and destabilize markets. China’s inflation cooled more than expected in July, with consumer and factory-gate prices both decelerating amid tepid domestic demand and easing oil costs. The Philippine economy grew at its slowest pace since 2009 (excluding Covid) due to Middle East conflict stoking inflation.

Earnings & Corporate Action

Greg Abel, Berkshire Hathaway’s chief, ended a three-year selling streak by ploughing a net $20 billion into stocks. SpaceX shares jumped again, nearing their $135 IPO price after a $327 billion rally, though Elon Musk now faces the hard grind of execution after the record IPO. Airbnb boosted its full-year revenue forecast, expecting mid-teens growth as AI bets pay off. Take-Two Interactive logged higher sales but widening losses due to a discontinued title. Wendy’s withdrew its outlook and slashed its quarterly dividend as its turnaround struggles. Under Armour lowered its revenue outlook on soft demand, particularly in North America and Asia-Pacific. Allianz reported an 11% rise in operating profit to a record high, as it reshapes its portfolio through dealmaking. India’s State Bank of India posted better-than-expected profit on strong credit growth. Porsche SE called for a faster Volkswagen overhaul after a $3.5 billion impairment hit. A flurry of private-equity firms are pouncing on the hot IPO market for exits, while the UK IPO slump is hurting private equity and venture capital exit routes. Draft Kings CEO Jason Robins criticized prediction bets on earnings calls, while the CFTC warned prediction markets to avoid American-style casino odds.

Credit & Lending

Private-credit managers are facing scrutiny over how they define liquidity, with some using aggressive math to project strength. Highly indebted companies are increasingly ditching private credit loans for cheaper bank loans as higher-for-longer rates bite. India’s top shadow lender Bajaj Finance led declines after the RBI proposed to tighten loan rules. India’s new auction system for setting closing stock prices faced a shaky first week, with trading strategies being buried alive. The US bared its financial weak spot as yen intervention pointed to American vulnerability. The free money era for AI bond buildouts among hyperscalers is ending as debt funding gets pricier.