Last updated: August 12, 2026, 2:34 PM ET
Markets Overview
Global markets were driven by a delicate balance of easing inflation fears, geopolitical turbulence, and a blistering earnings season. US stocks climbed as a tame July CPI reading eased rate‑hike anxieties, while Yardeni raised his S&P 500 target to 8,400 on “fabulous earnings momentum.” Yet S&P 500 earnings strength has been so robust that some investors now worry about the sustainability of the rally. The CPI meets forecasts reading helped stocks edge higher, but on August 11 stocks fell for a second straight session, with the Nasdaq losing 0.6% as oil prices firmed. A buying opportunity may be forming around persistent bearish sentiment, as investors abandoned hedges to chase stocks. Meanwhile, the AI trade is luring capital away from cryptocurrencies, with crypto investors fleeing bitcoin for AI names.
Equities
Technology led the charge after CoreWeave shares jumped 12% on record revenue and a $104 billion sales backlog, illustrating insatiable demand for AI cloud computing. Foxconn reported a 35% profit beat, ramping up AI server production to ride the global AI build‑out. Optical stocks soared as the market’s favorite momentum bet from earlier this year resurfaces on rising confidence in AI spending. Yet Nvidia soothed credit markets by limiting its exposure in a $500 billion AI financing plan, while Nvidia's AI buildout still faces two big problems: scarcity and profit margins. Nvidia credit risk later eased after the CEO clarified the $500 billion plan. Nvidia becomes the bank of AI as Wall Street groups work with the chipmaker to assemble a $500 billion funding package for AI infrastructure. Elsewhere, Tencent reported that AI spending snuffed out its profit‑growth run, while Tata Group lost $4.5 billion in market value after Chairman Natarajan Chandrasekaran said he will step down. Tata chair to step down amid a succession row with Noel Tata.
Consumer and industrial stocks also drew attention. Performance Food logged higher sales and profit on higher prices. Brinker International revenue hit $1.54 billion as Chili’s growth continued. Diageo is trying to revive lagging liquor icons Crown Royal, Smirnoff and Captain Morgan. Vestas shares surged after wind turbine orders bounced back and the company raised guidance. The Vestas CEO said EU rules prevent mergers needed to compete globally. AGL Energy jumped most in six months on strong battery performance. Shoprite soared as e‑commerce boosted full‑year profit by up to 14.7%. Godrej Consumer shares plunged after the CEO’s sudden resignation. ABN Amro beat profit estimates and raised its revenue outlook. Singapore Airlines lost almost $800 million on its Air India bet, with more pain forecast. HSBC’s global insurance head stepped down as the bank continues its overhaul. Hannover Re posted lower net profit on a currency hit.
Fixed Income
Treasury yields and the dollar recovered partially from morning declines as markets awaited the CPI report. The US sold 10‑year bonds at the highest yields since the 2007 financial crisis, with decent appetite in a $42 billion auction. Eurozone government bond yields rose ahead of the US CPI data. The bond market inflated Powerball to a $1 billion jackpot. Pimco’s Seidner said angst over Fed credibility is unwarranted and current yields look attractive. These bonds (TIPS with 3% real yield) offer a rare buying opportunity. US high‑grade bond market saw the most issuers since January, with 19 firms storming the market. Blue Owl raised $750 million of high‑grade debt to pay down credit lines. Atlanta Airport tapped munis for a $1.1 billion mega bond sale. CSN got financial relief after a $1 billion debt exchange was approved. Private‑credit firms are clamping down on loan sweeteners amid fears of “shadow defaults.” BDCs are paying more to borrow as the Fed hikes. Wealth management has a $3 trillion problem: investors are keeping too much cash in money‑market funds. Shareholder proposal filings are on the wane.
Currencies
The dollar strengthened, reversing its morning losses, as traders positioned for the CPI release. EM currencies pared gains after the tame CPI failed to shift Fed rate‑hike bets. Yen traders used options for flexibility into the data. The yen sank as the effect of the US‑Japan intervention faded, giving up roughly half its gains. Yen intervention put China’s yuan under more pressure to appreciate. CPI day and what katsu curry says about the yen’s level — stronger‑than‑forecast US inflation would revive rate‑hike concerns. In emerging markets, the rand carry lured traders to South African bonds at the fastest pace since January. Brazil election jitters hit a popular carry trade. Indonesia’s Prabowo nominated Destry Damayanti as central bank chief to calm markets after Perry Warjiyo’s unexpected resignation. Korea will require mock trading for single‑stock leveraged ETFs.
Commodities
Gold settled 0.59% higher at $4,408.90, up for a fourth consecutive session, while gold slips from a two‑month high as focus shifts to inflation and Hormuz talks. The USDA made a surprise cut to corn yield projections to 180.7 bushels per acre, much larger than analysts expected. US crude oil stockpiles posted an unexpected build of 17.4 million barrels. US natural gas futures gained on a hotter weather outlook. Crude futures moved lower awaiting news on Hormuz talks. Russia’s daily oil output missed its OPEC+ quota by almost a million barrels a day in July due to Ukrainian drone attacks. Black Sea oil tanker rates surged to a record on a drone barrage. OPEC cut its oil‑demand forecast again as Hormuz talks stalled. Saudis reported a million‑barrel output rebound in July to OPEC. Hormuz closure helped emerging‑market company bonds beat US peers as borrowing costs fell. The IEA said the Hormuz standoff derails oil supply recovery and deepens the demand slump. UAE shuttles Iraqi oil exports through the Strait of Hormuz. Latest oil market news showed oil edging up in a choppy session as skepticism over a Hormuz deal persisted.
In other commodities, China’s stubborn commodity markets defy the economic rulebook by surviving on lower prices. China’s pledge on US soybeans is tested as private crushers hold back. Panama Canal fees hit a record high as El Niño and the Iran war choke shipping. Chile granted a reprieve to state copper miner Codelco to reinvest profits. A Glencore‑backed group looks to rescue cobalt refiner Sherritt. Greenland oil wildcatters delayed a controversial drilling plan. Adnoc Gas is exploring a new LNG export plant to avoid the Strait of Hormuz. Sugar oversupply warnings from French trader Sucden were clouded by a lack of data.
Economy & Central Banks
Inflation eased slightly in July but prices remain elevated as the war drags on. July CPI report is expected to show falling energy prices, though the war with Iran injected volatility. Benign inflation data would reduce urgency around a September rate rise. Fed’s Hammack said “some number” of rate hikes may be needed. Consumer debt data shows overall health but persistent divides, as homeowners with low fixed‑rate mortgages lead a resilient economy while others are frustrated by declining real wages. Cash‑strapped homeowners are tapping into home equity. The labor market slowed as employers grew wary of hiring. The CPI and inflation explained — how the consumer‑price index is put together. India’s inflation stayed within target, backing the RBI pause. Britain needs more investors, not higher taxes on investment. Kevin Warsh’s monetary hall of mirrors puts forward guidance under fire. The other way to reduce government debt — financial repression. Weather extremes from El Niño are likely to hit the world economy hard, already causing dry spells and crop failures on three continents. Europeans, braced for 5th heat wave, have had enough. UK power supplies are likely to be stretched during a solar eclipse. Farmers move to night shift to beat European heat. Burnham to hold emergency Cobra meeting in response to heatwaves.
Corporate & Deal Activity
David Ellison floated a Hollywood exit as states threaten his Warner Bros. deal. The Paramount brinkmanship question: will Ellison’s threats work? Nelson Peltz prepared a bid for Wendy’s, with Trian, Blue Five Capital and Flynn Group potentially submitting an offer. Germany seeks bids for nationalized energy firm Uniper, with non‑binding offers due Sept. 21. GM set a $4.5 billion supply‑chain safety net. Boeing will sell three autonomous flight subsidiaries to Archer Aviation in exchange for a 16.5% stake. Samsung SDI bought GM’s stake in a US battery JV, using the Indiana plant for energy storage. Aurora Cannabis is reviewing a $272 million takeover bid from Curaleaf. Activist Elliott named six candidates for the board of Northern Star Resources, Australia’s biggest gold miner. L&T plans to manufacture rare‑earth magnets in India. 777 Partners filed for bankruptcy after creditors pushed for liquidation. Air Baltic bonds slumped after a debt‑for‑equity swap plan. Real estate fund set to lose a Boston life science investment, filing for insolvency. Harrods fights with the Al Fayed estate over hundreds of sex abuse claims. Switzerland pushes ahead with post‑Credit Suisse crackdown. Scottish North Sea tax revenues dropped 12%, fuelling debate on oil and gas’s future. Carnival’s CFO on restoring the balance sheet after the pandemic. Home Depot CEO to take medical leave. Uber exits Serve Robotics stake as the delivery alliance unravels. DMG Mori seeks $300 million in a Japan share sale. DayOne Data Centers confidentially filed for a $5 billion IPO. Data center QTS holds investor calls ahead of a potential debt sale. Lakers Owner Walter seeks cash to pay down loans amid a DOJ probe. MEMX files to list prediction market‑style bets on earnings. NYC launches investigation into Polymarket and Kalshi over marketing practices. Prediction firms are flagging insider traders, but many will not face charges. Judge dismissed Adani fraud charges. Former hedge fund CFO pleaded guilty to embezzling $3 million. Bank of America commits $250 billion to US projects, boosting the “America First” agenda. U.S. regulator rejected Dutch fintech Bunq’s banking license application.
Energy & Geopolitics
The Strait of Hormuz remains the central flashpoint. Gulf oil giants are spending billions to build ways around the Strait, as even a cease‑fire won’t erase the risk. JD Vance asked Ukraine to halt strikes on tankers using a Russian port, fearing disruption of Kazakh oil flows. The US asked Ukraine to stop tanker strikes as well. FirstFT: Vance asked Ukraine also covers the moderate Democrat win in Wisconsin and Bank of America’s $250bn commitment. Qeshm island bears the brunt of US bombing in southern Iran. Four killed in Houthi strike on a Red Sea ship. Trump secretly evacuated from Turkey, with Air Force One used as a flying decoy after an Iran threat. Jimmy Fallon recreates Trump’s catering container escape. The US missile stockpile is dangerously low after the Iran war. Trump wants to move on from the Middle East but the region isn’t letting him. Iran taps longtime IRGC commander Mohsen Rezaei to a top security post. Ukrainian drone attack kills 13 deep inside Russia. Trump’s anti‑wind crusade is boosting US gas by redirecting wind funds to fossil fuels.
Emerging Markets
Turkey’s funds urged action as stock swings threaten MSCI status. GoTo faces MSCI index removal after a plunge in shares. India options trading dropped 27% as the new closing auction mechanism upended strategies. Global investors favor Taiwan over Korea stocks after the AI selloff. Taiwan nuclear agency was hit by an autonomous AI hack linked to China. Hong Kong tech index is set for an overhaul with more firms and an AI focus. China’s auto market weakened further on subdued domestic demand. Lloyds Metals was authorized to restart a giant PNG copper mine closed for 40 years. Colombian earthquake disrupted a vital coffee export route. Zhu Rongji, former Chinese premier who pushed China to a market economy, died at.