Public Markets 3 Days

Last updated: August 14, 2026, 2:30 AM ET

Global Equities

Global stock markets are showing signs of strength, with FTSE 100 futures poised for a rise. This upward trend aligns with a broader rally across global equities, suggesting a positive sentiment among investors. In Asia, emerging-market stocks have gained momentum, buoyed by easing concerns over US interest rates and a strong performance in AI-related companies. This optimism is further supported by a retreat in a key US inflation measure, bolstering hopes that the Federal Reserve may refrain from further rate hikes. Similarly, Asian stocks are set to extend their gains as moderating US inflation and falling oil prices reinforce the view that the Fed will hold rates steady. European equities are also mirroring this exuberance, with the Stoxx 600 index seeing gains driven by AI-focused stocks, despite the region's generally lower exposure to the tech sector.

US Markets and Inflation

U.S. stocks have been on an upward trajectory, with the S&P 500 closing at a record high. This surge was fueled by a report indicating moderated wholesale inflation, which eased concerns about interest rates. Wall Street now anticipates the Federal Reserve will maintain current rates in the upcoming month. Further evidence of cooling inflation, particularly a softer-than-expected U.S. Producer Price Index, has also contributed to market gains. This data suggests that the path forward for gold prices might not be straightforward, despite the positive inflation news. In the bond market, traders have begun to pare back their bets on Fed rate hikes, influenced by the evolving inflation outlook. This sentiment is reflected in US stock futures edging higher as subdued inflation data continues to be a key focus.

Artificial Intelligence and Tech

The artificial intelligence boom continues to be a significant driver in the stock market, with AI-related stocks experiencing a resurgence. This renewed confidence in AI spending is sending shares of optical component makers soaring. The demand for AI solutions is also impacting the semiconductor industry, with companies like Applied Materials reporting higher profits and revenue due to sustained AI demand. The AI frenzy is also evident in China, where tech valuations are reaching multiples of their U.S. peers, with Beijing's support fueling a significant gain in the Star 50 index. This surge in demand for AI infrastructure is creating opportunities for "enablers," positioning them as attractive investments in the current market.

Energy and Commodities

Oil futures experienced a slight decline amid mixed market signals. Traders are closely monitoring efforts to broker a deal that could reopen the Strait of Hormuz, a crucial shipping lane. However, ongoing attacks on tankers and energy infrastructure continue to keep the market on edge. Despite a general decline, Middle Eastern crude shipments arriving at U.S. ports are offering some relief to a market strained by wartime demand for American exports. In Russia, several regions are facing renewed fuel shortages following persistent Ukrainian attacks on the country's oil refineries. The price of rare earth element erbium, used widely in infrastructure, has surged due to fears of renewed Chinese export controls, highlighting China's dominant position in the production of this metal.

Fixed Income and Currencies

The yen is trading near the key 160 per dollar level, prompting investors to watch for potential intervention by currency officials. While government intervention is ongoing, strategists like Rick Rieder of BlackRock suggest that a sustained yen rebound will require hawkish signals from the Bank of Japan. The yen's weakness is attributed to a combination of factors, making it difficult to rectify. In contrast, African local-currency debt is outperforming emerging-market peers, driven by high yields and economic reforms that are attracting investor interest in government securities. Meanwhile, US Treasury yields have jumped amid concerns over mounting public debt and persistent inflation, reaching their highest levels since 2001 for 30-year bonds.

Corporate and Deal News

Reddit Inc. shares experienced a significant surge, exceeding 10% after hours, following the announcement of its inclusion in the S&P 500. In the financial sector, JPMorgan Chase has ended its banking relationship with prediction market platform Polymarket due to regulatory concerns, despite the platform's pursuit of a $20 billion valuation. In the realm of artificial intelligence, investors in Anthropic are anticipating an initial public offering with a valuation of $2 trillion or more, expected in October. However, U.S. AI companies like OpenAI and Anthropic are also engaged in a price war, facing increased pressure from Chinese AI rivals.

Political and Geopolitical Developments

Nigel Farage, the leader of Reform U.K., has won the parliamentary by-election in Clacton. In the U.S., former President Trump has initiated a push to impose tariffs on Chinese drone technology, with levies of up to 100% planned for unmanned aircraft and their components. The U.S. is also reportedly enlisting American tech groups to target cybercriminals, a move that echoes historical strategies of employing civilians for national security missions. Meanwhile, US mortgage rates have seen an increase in America and several European economies in recent weeks, partly due to heightened tensions between the U.S. and Iran.

Other Notable Developments

Tyson Foods Inc. announced plans to close several additional beef plants, signaling a restructuring within the U.S. beefpacking industry due to a prolonged cattle shortage. In the cryptocurrency space, the Securities and Exchange Commission has postponed a meeting concerning digital asset regulation, marking another setback for the industry. The SEC's delay comes as landmark crypto legislation remains stalled in Congress. In New York City, the rollout of the pied-à-terre tax can proceed for now, following a temporary hold being lifted by an appeals court.