Public Markets 3 Days

Last updated: August 15, 2026, 2:30 PM ET

Equities

U.S. stocks experienced a mixed trading session, with the S&P 500 logging its third consecutive weekly gain, buoyed by renewed optimism surrounding potential Federal Reserve rate cuts. Investors are pricing in a September rate pause, contributing to the upward momentum in the market. Meanwhile, corporate earnings have been exceeding Wall Street's expectations, painting a rosy picture for a stock market hovering near record highs. However, other market indicators suggest caution, with weak retail sales data tempering enthusiasm about the artificial-intelligence boom. Despite this, the broader market sentiment remains bullish, with some analysts noting that European equities are attracting significant attention. The market is also seeing a significant rebound in leveraged ETFs, which had previously suffered significant losses.

Fixed Income

Treasury yields have retreated as soft July retail sales data further eroded expectations for Federal Reserve interest-rate hikes. The US two-year yield has fallen for a third straight week, signaling a shift in market sentiment. In international markets, hedge funds have halved their short bets on the yen following the historic joint intervention by the US and Japan. This move indicates a reduction in negative sentiment surrounding the Japanese currency. Meanwhile, traders are finding it "really difficult to trade" bonds as traditional correlations unwind and markets become more sensitive to geopolitical risks and inflation rather than solely US economic growth signals.

Commodities & Currencies

Oil futures ended the week higher, with prices supported by the unresolved situation in the Strait of Hormuz. Both the U.S. and Iran have asserted control over the waterway, contributing to ongoing market uncertainty. In precious metals, gold and silver inched higher to close the week, with gold settling up 0.4% and silver rising 0.2% on Friday. Separately, aluminum prices have fallen for a second day after a major Middle Eastern smelter announced plans to restore production, blunting fears over a growing shortage of the metal. The dollar has touched its lowest level since May, reacting to the unexpectedly weak U.S. retail sales report, which diminished expectations for a Federal Reserve rate hike.

International Markets

South Korean stocks have surged again, with the Kospi index climbing amid strong demand driven by artificial intelligence. Seoul has also implemented measures to curb the use of leveraged ETFs. In Europe, German pension reform is set to hand modern fund managers a significant new pool of capital to deploy. However, European indexes were mostly higher, with the exception of London's FTSE, which was dragged down by a production guidance cut from Antofagasta. Brazil's markets have experienced a bruising week, with assets posting significant losses amid growing anxiety over the upcoming presidential election. Colombian bond sales are showing signs of recovery following the election of a market-friendly government.

Deals & Corporate News

In the sports world, the sale of the Los Angeles Lakers valued the team at a record $12.5 billion, continuing a trend of skyrocketing prices for major sports franchises. MSG Sports has filed to spin off the New York Rangers from its Knicks operations, creating a separate entity for the hockey team. Nvidia disclosed a $21 billion stake in SpaceX, a move that comes after Elon Musk announced an exclusive arrangement to equip SpaceX's data centers. In the tech sector, OpenAI is facing internal shakeups as Sam Altman prepares for an IPO, with executive exits and changes in the safety team causing staff unease. Bally's Corp. has warned of substantial doubt regarding its ability to continue as a going concern, as it seeks fresh liquidity.

Economic Indicators

July retail sales in the U.S. posted their biggest drop in over a year, reflecting economic strains on households due to persistent inflation. Despite this, overall consumer debt data suggests a resilient economy, though divides persist, with many consumers frustrated by declining real wages. Inflation remains a key concern, with markets indicating that "we’re not at target yet." In Australia, speculative investors are increasingly betting on a Reserve Bank of Australia rate hike in November as inflation stays above the central bank's target. Meanwhile, Sri Lanka is working to reduce its reliance on foreign debt, aiming for more sustainable debt levels.

Geopolitics & Disasters

Israeli strikes in Lebanon killed 11 people, including children, according to the Lebanese health ministry. The Israeli prime minister's office stated that Hezbollah had initiated the conflict. In the Philippines, a 7.7-magnitude earthquake in Indonesia resulted in at least 47 deaths, marking one of the strongest tremors in the region in decades. Europe is once again grappling with extreme heat and wildfires, straining infrastructure and testing the continent's resilience, though some relief is anticipated in the coming days. A drone attack sparked a fire at Russia's Baltic port of Ust-Luga, a critical hub for energy and commodity exports, as Ukraine continues its campaign against Russian port infrastructure.