Public Markets 3 Days

Last updated: August 10, 2026, 11:33 AM ET

Global Markets Overview

U.S. equities opened the week little changed, with major indexes edging back from recent records as investors turned their focus to upcoming chipmaker earnings and inflation data. The S&P 500 and Nasdaq were flat in early trade, consolidating after a blockbuster earnings season that has helped allay concerns about AI spending and inflationary pressures. European indices were mixed, with the Stoxx 600 and Germany’s DAX extending Friday’s record highs, while France’s CAC 40 and London’s FTSE 100 slipped. Investors are returning to European stocks, where companies in the Stoxx 600 are projected to deliver a 22% increase in second-quarter profits, lifting some of the gloom from the Iran conflict. Emerging-market stock valuations have sunk to less than half those of U.S. equities for the first time in two decades, a divergence some see as a buying opportunity.

Fixed Income and Rates

U.S. Treasury yields rose ahead of the week’s inflation data, with the market expecting stable readings that could provide clarity on the Federal Reserve’s path. Bond yields edged higher as Wall Street priced in steady consumer-price figures. In Europe, eurozone government bond yields also ticked up amid persistent uncertainty over U.S.-Iran negotiations to reopen the Strait of Hormuz. Meanwhile, Wall Street traders interpret Treasury Secretary Scott Bessent as sending fresh signals that he is eager to prevent bond yields from spiking further, a move intended to calm market angst.

Currency Markets and Intervention

The yen extended its slide, erasing roughly half of the gains spurred by the historic U.S.-Japan joint intervention. Analysts point to a lack of a “unified voice” among central banks as the currency’s weakness returns. The dollar strengthened against the yen, with Goldman Sachs noting that a Bank of Japan rate hike next month could help bring long-term strength to the yen. The Australian dollar is poised to climb toward a 35-year high against the yen as Tokyo’s intervention impact fades and the RBA’s hawkish stance provides support. Central banks across emerging Asia are finding new ways to support their currencies without drawing down foreign-exchange reserves, as recurring Middle East tensions persist.

Commodities and Energy

Oil prices climbed amid growing doubts that the Strait of Hormuz can reopen soon, with Iran and Oman remaining short of a deal. Hopes for a breakthrough over the weekend were dashed, reinforcing concerns over supply disruptions in the Middle East. U.S. natural gas futures spiked by the most in over two months as an unusually large swing in weather forecasts triggered a wave of short-covering among bearish money managers. European TTF gas also rose 5% on Hormuz shipping fears. Gold held above $4,400 ahead of U.S. inflation data, rallying on the back of ETF inflows and central bank buying. U.S. wheat futures hit their highest in more than a month as Black Sea shipping disruptions raised the prospect of grain supply shortages.

Emerging Markets and Commodities Special

Emerging-market stocks and currencies gained after unexpectedly soft U.S. jobs data eased expectations for further rate hikes. In Asia, Indian foreign-exchange reserves have climbed for five straight weeks, the longest streak since April 2025, pushing toward a record level on strong foreign inflows. Indonesia’s stocks neared bull-market territory as investor sentiment improved on signs of a resilient economy. South Korea’s small-cap stocks surged 30%, fueled by a rotation from leveraged ETFs as restrictions on products tied to heavyweight chipmakers shifted investor focus. China’s consumer price growth cooled to the slowest pace in six months, while factory-gate inflation eased for the first time since the Iran war began, reviving deflation concerns and reflecting tepid domestic demand.

Mergers, IPOs, and Corporate Finance

Fast-fashion retailer Shein pitched its upcoming IPO to investors at a valuation below $30 billion, a roughly 70% drop from its peak four years ago, with Bloomberg Intelligence estimating a narrower range of $22 billion to $25 billion. In mining, a Glencore-led consortium made a rival bid for troubled Canadian miner Sherritt International, proposing a rescue deal that offers an alternative to an earlier plan backed by an ally of the U.S. President. Barrick Gold settled its long-running dispute with Newmont over their Nevada operations, securing a cash payout of $1.95 billion and clearing the way for Barrick to publicly list its North American assets. Teledyne Technologies agreed to acquire Varex Imaging for approximately $1.1 billion, inclusive of equity and debt. Cloudflare announced plans for a $2.175 billion private offering of senior convertible notes following its guidance boost.

Sector and Company News: Big Tech and AI

Meta released an “open source” version of its most powerful AI model, Muse Glimmer, which can be freely downloaded and modified, intensifying the debate over whether AI technology should be restricted. Mark Zuckerberg attacked “closed” AI rivals, casting OpenAI and Anthropic as foils in his pitch for making powerful AI more freely available. The shift toward open models is part of Meta’s broader bet on catching up in the artificial intelligence race through closer ties with Washington. Boeing sold three autonomous flight subsidiaries, including its flying-taxi venture Wisk Aero, to Archer Aviation in exchange for a 16.5% equity stake in the California startup. Intel announced it will offer $15 billion of common stock, citing strong customer demand driven by unprecedented investment in AI compute.

Sector and Company News: Consumer, Financials, and Industrials

Diageo launched a plan to revive three of its lagging liquor brands, including Crown Royal, Smirnoff, and Captain Morgan, aiming to reinvigorate sales from the “shelf up.” Tractor Supply shares climbed to record highs after strong earnings, though the farm-and-ranch chain is also cutting prices and slowing expansion as shoppers delay purchases. Peter Ruis stepped down as John Lewis’s managing director amid “really tough” trading conditions less than three years after taking the role. Todd Boehly’s Eldridge group is rolling out AI across its portfolio, including Chelsea Football Club and film studio A24, after acquiring a 50% stake in software developer Sudolabs. Revolut won a French banking license, accelerating the UK-headquartered fintech’s European expansion. Erebor, a start-up bank backed by Palmer Luckey, is set to raise $1.5 billion at an $8 billion valuation, underscoring the growth of Silicon Valley-supported lenders.

Private Credit and Leverage

The private credit market is showing growing strain, with default rates hitting recent highs and internal reviews pointing to tougher times ahead. A Wall Street Journal analysis reveals that private-credit managers report liquidity metrics differently, with some using aggressive math to project strength. Highly-indebted companies are increasingly ditching private credit loans for cheaper bank loan capital, a shift underscoring the reality of higher-for-longer interest rates. Meanwhile, the leveraged ETF boom on Wall Street is creating new ways to profit from sudden volatility in tech stocks, amplifying intraday momentum plays.

Geopolitical Market Impact

Iran held firm on demands for reopening the Strait of Hormuz, pushing for a return to a June memorandum of understanding and insisting the U.S. must meet new conditions first. Iranian rhetoric hardened amid push for a deal between the Islamic republic and Oman, with reports that Tehran launched a missile attack on a UAE ship. President Trump is betting he can wait Iran out, prolonging uncertainty for oil markets. Adnoc Gas is exploring a new LNG export facility outside the contested Strait of Hormuz, Abu Dhabi’s latest move to build bypass infrastructure. Ukraine’s deadly drone attack on an industrial city in Tatarstan, which killed at least 13 people, marked one of the deepest strikes on Russian territory since the war began.