Last updated: August 10, 2026, 8:33 PM ET
Equities
U.S. stocks edged back from records on Monday, with major indexes turning lower after the S&P 500 finished last week at an all-time high. Blockbuster earnings from the country’s largest companies have helped ease worries about AI spending, leaving stock funds up 10.6% so far in a turbulent 2026. European indexes started the week mixed, with the Stoxx 600 and Germany’s DAX extending Friday’s record highs, while London’s FTSE 100 and France’s CAC 40 were lower in early trade. Asian stocks were set for a muted start ahead of key US inflation reports, as oil held gains and hopes for a Strait of Hormuz deal faded.
The AI trade continues to reshape markets, with Wall Street seeking another half-trillion dollars to fund computing power for Nvidia’s customers. A growing share of equity leverage is riding on the same AI names, and the leveraged ETF boom is creating new ways to profit from sudden bursts of volatility in tech stocks. Investors are abandoning hedges in order to chase soaring stocks, with demand for protection against a drop falling to the lowest level since Trump’s tariff capitulation, as indexes rally to records. China is betting on AI stocks as it races against the US for chip dominance, marking a break from Beijing’s reliance on subsidies. South Korea’s small-cap stocks surged 30% on a rotation from leveraged ETFs, regaining investor interest after restrictions on chipmaker-focused ETFs shifted demand. Meanwhile, investors are dropping bitcoin and other digital tokens to get swept up in the mania over AI stocks.
In corporate news, Intel announced a $15 billion common stock offering, citing strong customer demand driven by unprecedented investment in AI compute. Cloudflare plans to sell $2.175 billion in convertible notes after its guidance boost sent shares to an intraday high. Teledyne Technologies will buy Varex Imaging for about $1.1 billion. Tractor Supply stock climbed to record highs after strong earnings, while the company is also lowering prices, closing pet-specialty stores and scaling back expansion as its shoppers delay purchases. Boeing is folding its flying-taxi venture Wisk Aero into Archer Aviation, selling three subsidiaries including Sky Grid and Insitu in exchange for a 16.5% stake in the California startup. Rocket Lab narrowed its loss and reported rising revenue, ending the quarter with a $2.36 billion backlog up 137% year-over-year. Hims & Hers Health boosted its revenue target to $3.1-$3.3 billion for the year, despite swinging to a second-quarter loss. AST SpaceMobile expects 2026 revenue of $150-$200 million as it builds out a space-based cellular network. Trump Media reported more than 10 sign-ups to its real-time Truth Social feed, primarily from high-frequency trading firms, even as traffic to the platform fell sharply this summer with double-digit declines in visitors during June and July. The company’s second-quarter loss deepened to $238.1 million on a decline in the value of digital assets.
Emerging-market stock valuations have fallen to less than half those of US equities for the first time in at least two decades, a sign to some investors of increasingly attractive opportunities. Indonesian stocks neared bull-market territory as investor sentiment was buoyed by signs of a resilient economy and easing concerns over potential market downgrades. Strategy Inc. spent another week selling more Bitcoin and common shares to bolster its cash reserve.
Fixed Income
Treasury yields rose as Middle East tensions and inflation fears increased, with bond markets souring to rising oil prices as hopes for a US-Iran deal over Hormuz faded. Eurozone government bond yields also rose slightly amid uncertainty over negotiations to reopen the Strait of Hormuz. The US high-grade bond market saw its most issuers since January, with the record pace of investment-grade issuance continuing as 19 firms stormed the market. IBM returned to the Canadian corporate bond market for the first time since 2012, selling C$2.75 billion. The SEC has made it easier for data center owners to sell asset-backed securities by exempting data-center bonds from key securitization rules, potentially opening the door for more debt sales. A performing arts school in Los Angeles is planning to borrow $117 million in the municipal bond market, marking the largest private school deal in two years. Duke Energy plans to raise about $1.75 billion by selling equity units to pay down debt.
Private credit is under growing strain, with default rates hitting recent highs and internal reviews of loan health pointing to tougher times ahead, according to a WSJ analysis. Private-credit managers report liquidity metrics differently, with some using aggressive math to project strength. Alternative investment firm 777 Partners has filed for bankruptcy weeks after creditors sought to liquidate the company. Todd Boehly’s Eldridge is rolling out AI across its portfolio from Chelsea Football Club to film studio A24 after acquiring 50% of Sudolabs. Private equity firms are unable to exit a growing number of investments at values their investors require, even amid a booming deal-making environment.
Currencies & Commodities
Gold advanced through $4,400 an ounce ahead of a key US inflation report that could provide fresh clues to the Federal Reserve’s appetite for an interest-rate hike. Gold rose to nearly $4,400 as traders weighed the Hormuz standoff and inflation data, with ETFs pouring money into bullion on the heels of central banks. Gold and silver futures settled higher for the second straight session, with gold adding 0.5% and silver gaining 2.8%. Barrick Gold’s chairman faced investor backlash over a planned overhaul, while Barrick and Newmont’s gold mining truce cleared the way for an IPO.
Oil held onto a rally as hopes for a deal to reopen the Strait of Hormuz faded, with oil prices climbing on the stalemate and rising doubts that the waterway can reopen soon. Oil surged with no Hormuz deal in sight, while European gas prices jumped as discussions between Iran and Oman failed to convince traders that a deal would lead to a quick resumption of LNG flows. US natural gas futures rebounded as near-term weather forecasts added heat to the outlook and continuing conflict in the Middle East fed global supply concerns, with prices spiking on an unusually large swing in weather forecasts triggering a wave of short-covering. Iran’s oil terminals have appeared largely idle this month as the US continues to impose a naval blockade. Saudi Aramco pushed back restarting its Jazan oil refinery to late August following a weekend attack. Adnoc Gas is investing more than $8 billion in expansion and exploring a new LNG export facility outside the Strait of Hormuz.
The yen erased half of its intervention gains as traders tested Secretary Bessent, with the currency giving up roughly half its gains from joint US-Japan action as investors cited a lack of unified voice among central banks. The yen swung to a loss, sapping momentum from authorities’ efforts to boost the currency. The Australian dollar is poised to climb back toward a 35-year high against the yen as the impact of Tokyo’s intervention fades. The dollar continued to strengthen against the yen, despite efforts to prop up the Japanese currency. Traders are piling into Taiwan dollar options to bet on a rebound, signaling a shift in sentiment after the currency suffered its worst July since 2015. The renminbi’s hardest mile is only now beginning, with turning the currency into an asset the world wants to hold set to be difficult. Most emerging-market currencies weakened as fading hopes of a US-Iran deal sent Brent futures higher. Central banks in emerging Asia are increasingly finding ways to support their currencies without dipping into reserves, as Middle East tensions and higher-for-longer Fed rate prospects persist. India’s FX reserves climbed toward a record, rising for five straight weeks, the longest run since April 2025.
In other commodity markets, wheat climbed ahead of the USDA’s monthly supply demand report, expected to show declining global grain supplies. Australia’s wheat crop is rebounding at a crucial time for supply, helping to buffer an increasingly grim global outlook. Record-low Danube levels are straining the vital route for Black Sea grain, restricting flows through Romania just as Russian strikes divert Ukrainian grain from Odesa. The global sugar market is oversupplied, and the outlook is blurred by a lack of data, according to French trader Sucden. High-oleic soybeans are gaining traction as dairy feed, giving US growers a new market as exports get caught in trade war. Chile has allowed ailing state copper miner Codelco to reinvest all profits for the first time, leaving about $2.42 billion in the copper giant to revive production and ease a record debt burden. A chicken glut is dragging down meatpackers and lowering grocery bills, as a rise in flock sizes, larger breeds and steady beef demand have contributed to a poultry surplus. Kenya plans to import one million bags of corn to replenish national reserves after a failed crop.
Policy & Regulation
Federal Reserve Bank of Cleveland President Beth Hammack said it’s possible a number of rate hikes may be needed to bring inflation down to 2%, but she does not want to commit to a specific path. The Philippine central bank is ready to tighten monetary policy further to guide inflation back to target, Governor Eli Remolona said, while adding there’s less pressure to do so after last quarter’s weak GDP growth. Hungary’s central bank renewed its support for the government’s efforts to meet conditions for joining the euro area. Indonesia’s President nominated Destry Damayanti as the sole candidate to head the central bank, a move that may calm markets after the veteran governor unexpectedly resigned. The SEC alleged that investment adviser Adit Ventures and founder Eric Munson made false claims about investments and overcharged clients in pre-IPO schemes. A US judge dismissed US securities fraud charges against Gautam Adani, ending a blockbuster case that threatened the Indian billionaire’s conglomerate. Italy’s energy regulator fined A2A SpA €5 million for power market manipulation dating back to Europe’s energy crisis in 2022. Australia widened orders on Chinese investors in a rare earths mining firm, telling two parties they need government approval before selling holdings. New food guidelines from the Trump administration require companies to notify regulators before adding new ingredients, but tougher enforcement will require Congress. The FCC moved to scrap its broadcast ownership cap, with critics arguing the agency itself should also be eliminated.
Chile’s government will allow Codelco to retain all of its 2025 profit, a $2.42 billion boost. The US pledged $2 billion for battery and materials producers. South Korea’s Hanwha made a $1 billion nonbinding offer for Austal USA as Washington seeks to revive domestic shipyards. Morgan Stanley will facilitate a $1.5 trillion infrastructure initiative to support clients building technologies central to US economic and national security. The US backed an Australian rare earth miner with a $400 million loan to develop a scandium project, aiming to cut out China. Chicago is hiring Ashlee Gabrysch, a senior director at Fitch Ratings, as its next CFO amid a rash of exits. Greater Manchester Mayor Andy Burnham plans to crack down on vape and betting shops, giving councils extra powers to curb unwanted retailers and “bring town centres back to life.” He also promised to tackle “rip-off” discounts and subscription traps, vowing to stop misleading “pretend prices” claims. A new law imposing a duty of candour seeks to force public officials to tell the truth, but implementation faces challenges from tribal loyalty.
Deals, IPOs & Corporate Finance
The world’s largest meat supplier, JBS, will be led once again by a member of Brazil’s Batista family, with Wesley Batista Filho becoming CEO and restoring control of the company to its founding family. A consortium led by Jeff Bezos’s son-in-law is closing in on a Liverpool FC stake, with a deal that could value the club at over $6 billion. Shein is pitching its IPO to investors at a sub-$30 billion valuation, a roughly 70% drop over four years, with Bloomberg Intelligence estimating a $22-$25 billion valuation. Revolut won a French banking licence from the regulator, accelerating the UK-headquartered fintech’s European expansion plans. A start-up bank backed by Palmer Luckey is set to raise $1.5 billion, valuing Erebor at $8 billion. The US regulator rejected Dutch fintech Bunq’s banking license application, citing supervisory and compliance concerns. Diageo is looking to revive three lagging liquor icons including Crown Royal, Smirnoff and Captain Morgan. John Lewis boss Peter Ruis stepped down less than three years after taking the position, amid “really tough” trading. The Del Vecchio family’s €55 billion empire is trapped by its own rules, with a conflict between heirs leaving Delfin in stasis. A Glencore-backed group is looking to rescue cobalt refiner Sherritt. Braskem’s bondholders continue to press Petrobras to inject fresh capital into the struggling petrochemical producer. DatVietVAC, a producer of top Vietnamese TV programs, is pursuing an IPO as it seeks to replicate South Korea’s entertainment success.
In other deal news, Gucci is breaking luxury’s penny-pinching taboo by reducing overheads and reinvesting the proceeds into lowering prices to attract new buyers. Treasury Wine shares soared to an eight-month high after a A$558.4 million post-tax writedown to tackle supply chain problems in its US business. FanDuel and DraftKings are hedging their bets with a predictions pivot, branching into prediction markets. Westpac shares dropped as the Australian lender reported a decline in mortgage loan applications, a sign the housing slump is worsening. Malaysian Prime Minister Anwar Ibrahim lost a third lawmaker from his party after a long-time parliamentarian resigned. Chinese EV exports are surging as high gasoline prices during the Middle East war give them a boost. Asian carmakers including Honda, Hyundai and Toyota are cashing in as high petrol prices lift US demand for hybrids, with sales jumping by a fifth in July.
AI, Tech & Innovation
OpenAI’s head of ethics left the start-up less than a year after joining, one of several high-profile exits as safety concerns mount. Senator Bernie Sanders called on AI companies to pause development to “avoid disaster,” warning that corporations have already lost control of technology that could cause “potentially cataclysmic results.” Trump has shrugged off AI and data center concerns as voters grow anxious about the facilities. Meta is betting big on open AI, embracing open models and closer ties to Washington as it seeks to catch up in the artificial intelligence race. CEO Mark Zuckerberg attacked “closed” AI rivals like OpenAI and Anthropic as Meta returned to open models, releasing Muse Glimmer, a model that can be freely downloaded and modified. A UK start-up, Cambridge Aerospace, raised $300 million at a $3.4 billion valuation to build missile and drone interceptors, securing MoD contracts and talks with the US government. Europe faces a rocket launcher shortage by 2030, the space agency chief warned, as demand for launches grows faster than the region’s capabilities. AI will boost oil and gas production more than green energy, a report found, stoking debate over the tech’s impact on greenhouse gas emissions. Waymo is growing faster than ever, deploying driverless cars to 15 US cities, but its vehicles keep encountering unexpected “edge cases.” The hidden lease leverage of AI hyperscalers is very large. A data-center backlash is leading to a new land rush in the Texas oil patch, as big landowners in the Permian Basin aim to capitalize on the Nimby rebellion against AI projects. AI agents are taking entire online courses for cheating students, raising questions about the value of an online degree. HFTs are shunning India’s stock closing auction over SEBI short-selling hurdles. A French trader warns of sugar oversupply as futures rally. London is plotting a digital gold pivot to protect bullion trading, with the FCA seeking to encourage digitisation of financial markets. Malaysia was confident in its social media ban, but kids are still logged in. Australia widened its order on Chinese investors in a rare earths firm, telling two parties they need government approval before selling holdings. Egypt’s inflation rate accelerated for the first time since March, disrupting an easing streak. Turkey resumed allowing ships to transit its straits on the way to the Black Sea, following unexplained delays amid heightened security risks. A near miss between a Jetstar plane and a Qatar Airways jet triggered a safety probe at Sydney airport. Israel rejected Trump’s 15-point plan to disarm Hamas. Tehran said the US must meet new conditions before Iran reopens the strait. Iran appointed a longtime military commander to a top security post, suggesting the establishment is consolidating power. Oil markets face ongoing uncertainty as Trump is betting he can wait out Iran, prolonging the Hormuz oil limbo. Iran, holding firm to Hormuz, is pushing for a return to the June MOU. Wall Street sees bond-market angst behind Treasury Secretary Bessent’s moves, viewing them as signals to keep bond yields from spiking. US consumer brands say chicken, soap and snacks are selling better overseas, outpacing slowing domestic sales. A Glencore-backed group is looking to rescue cobalt refiner Sherritt. A Democrat is sounding the alarm on Christian nationalism in Congress. Voters see political parties as more extreme than their own candidates, according to a New York Times/Siena poll. Tighter federal mortgage rules will require many condominium associations to raise dues for future repairs. Auto insurers didn’t pay out on 45% of claims last year, a WSJ analysis found, meaning the risk is growing your insurance won’t pay after a crash. Victims are losing thousands of dollars on the “Jury Duty” scam. Kalshi’s Tarek Mansour isn’t interested in management advice. The NYT CEO discusses running a media brand in the age of AI. London needs capital to revive its struggling public markets, the LSE’s deputy CEO said, noting US policymakers once fretted London would eclipse Wall Street, but now major UK companies are moving listings to the US. The UK cost estimate of Palantir’s NHS data platform has risen to more than £1 billion, with the lifetime charge rising to £1.1 billion. Finance groups could help solve Burnham’s social care conundrum, replicating the universal appeal of the NHS without requiring commensurate public spending. The UK missile and drone interceptor start-up raised $300 million at a $3.4 billion valuation. The pope’s favorite team is the Chicago White Sox, apparently. Lake Mead, the nation’s largest reservoir, is smaller than ever, with record low water levels imperiling supplies and electricity.