Last updated: August 21, 2026, 10:29 AM ET
Equity Markets
US stock futures gained in early trading Friday, putting the Nasdaq 100 on track to end a five-day losing streak as yields held steady and Bitcoin soared. Nasdaq 100 futures pointed to a strong open following Asian stocks mixed performance overnight.
Nibe Industrier shares rose more than 8% after the Swedish heating company reported sales and operating profit growth on strong heat-pump demand in Europe and the U.S. European indexes largely opened higher, with the Stoxx 600 lifted by the banking sector, while Nikkei fell 0.5% tracking Wall Street losses.
Walmart added to Wall Street pressures with weak sales growth, posting the slowest sales growth in years as Americans tightened their wallets. Ross Stores boosted its outlook on growing demand for off-price retail, forecasting earnings per share of $8.61 to $8.77 for the year. BJ's Wholesale logged higher second-quarter profit and revenue as budget-conscious shoppers continued to flock to its stores in search of value. Lowe's lowered its full-year sales and profit targets, signaling that price-conscious homeowners are delaying major renovations.
European stocks outperformed as earnings surged, with European companies reporting their best earnings season in years. Argenx soared on trial success, marking a big week for biotech stocks on both sides of the Atlantic. Orion180 filed for an IPO eyeing the home and flood insurance market, while DayOne sought a loan to fund a Hong Kong data center ahead of a planned U.S. IPO.
Samsung plans to return a record $80 billion to shareholders, with the South Korean chipmaker under pressure to distribute more of its bumper profits from the AI boom. Samsung's buyback of up to $78.88 billion in shares underscores how chip makers are reaping rewards from the artificial-intelligence boom. Korean chipmakers bore the brunt of a chip slide spurred by rising yields, leading an Asian selloff.
Hua Hong Grace and Weichai Power were added to Hong Kong's Hang Seng index, joining Kingboard and Zijin Gold as potential additions to the benchmark. Hang Seng Indexes confirmed the additions following its quarterly review. Hong Kong Exchanges posted record earnings on an IPO and trading boom, with second-quarter net income rising 21%.
Alibaba-backed robot firm Dexmal seeks a $3 billion valuation in new funding, demonstrating strong investor interest in Chinese firms chasing AI breakthroughs. Chinese start-up Land Space landed a reusable rocket for the first time, potentially putting China closer to challenging SpaceX's dominance in lower-cost spaceflight. Chinese automaker Chery plans to open a UK R&D center, localizing operations in Britain and Europe.
Fixed Income & Currencies
Bond yields held close to flat after initially retracing sharp falls that followed the Treasury's surprise bond market intervention. Treasury buybacks may only briefly tame yields, as concerns remain about high levels of debt and government spending. Treasury Secretary Scott Bessent's efforts to calm bond investors continue to face skepticism, with Bessent's bond market intervention triggering mixed results.
Treasury buybacks calmed bond yields, sending U.S. stocks higher as the government ramped up repurchases of longer-dated bonds. US Treasury doubled bond buybacks in an attempt to soothe the bond market, easing pressure on yields that had reached nearly two-decade highs. Treasury intervention leaves Warsh's plea clouded, complicating the Federal Reserve's interest rate decisions. Aegon maintains its steepener bet despite U.S. bond moves, betting on widening gaps between short- and long-term borrowing costs.
Gold prices rose above $4,600 a troy ounce, heading for a weekly gain of 4% on concerns over U.S. government debt and borrowing costs. Gold gains accelerated as Treasury buyback plans sent U.S. yields lower, with gold surging alongside Bitcoin amid debasement fears. Gold up 2% amid a weaker dollar and falling bond yields after the Treasury announced it would double bond buybacks. Gold headed for a third weekly advance on accelerated Treasury buybacks.
Bitcoin and gold surged as Bessent's bond market intervention weighed on the dollar, with Bitcoin on track for its best week in over three years. Bitcoin rally lifted crypto shares, contributing to U.S. equity gains as bond markets shrugged off Treasury efforts to curb borrowing costs. Bitcoin climbs as bond markets remain unimpressed by Treasury intervention, with Bitcoin soaring driving tech stock momentum.
Dollar tumbles to its weakest in three months on Treasury buyback announcements, reversing a bond market rout that had pushed long-dated yields to multi-decade highs. Euro rises to a three-month high versus a broadly weaker dollar, helped by eurozone PMIs pointing to relative resilience. Citi turns negative on the dollar over buyback risk, as markets gear up for a less hawkish Federal Reserve. WSJ Dollar Index rose 0.10% to 96.07, snapping a two-day losing streak.
EM currencies were mixed as the Treasury's bond buyback lift proved short-lived, allowing the dollar to rebound. Kazakh tenge soared on foreign bond inflows despite Ukrainian drone attacks disrupting Russian oil exports. Philippine peso hit a record low against the dollar as oil prices climbed, putting pressure on the central bank to intervene. Carry traders pivot to the Swiss franc after yen volatility spikes, seeking safer funding sources.
Australian bond futures positions rose toward all-time highs as the nation's growing debt pile fuels demand for hedging. India bonds sold off after surprisingly hawkish RBI minutes, with yields potentially drifting higher as foreign-currency deposit inflows fade. India's growth may top the RBI's 6.7% forecast, according to Deputy Governor Poonam Gupta. NSE targets a $55 billion valuation in what would be India's largest IPO.
Commodities & Energy
Oil prices slipped but remained on track for a significant weekly gain of around 5% after Trump vowed sweeping measures to isolate Iran's economy. Oil futures rose for a fifth straight session as the U.S. planned unprecedented economic isolation of Iran. Oil extends rally as U.S. threats intensify, with oil surging on targeting of Iran's economy. Iranian oil supply to Chinese refiners squeezed by U.S. blockade, showing the effectiveness of sanctions choking off Tehran's revenue.
Chinese refiners snapped up Iraqi crude as more barrels exit the Persian Gulf, underscoring resilience of oil exports despite threats to shipping. US Navy helps get oil through the Strait of Hormuz, offering a way out for some energy exports amid Iranian threats. Dark oil tankers spike in the Gulf raises risk of catastrophic spills as more vessels navigate with location devices turned off to evade Iran.
Copper traders rushed metal into LME warehouses to ease a historic squeeze, though signs of underlying physical tightness remain. China materials stocks emerged from slump as new market leaders, with gold and copper rallies transforming one of 2026's lagging sectors. Grain prices surged after Ukraine war chokes off seaborne exports, with analysts fearing a global food price shock.
Technology & Innovation
Waymo doubles spending on lobbying in its robotaxi battle with Uber, seeking to persuade U.S. regulators to clear a path for fully autonomous taxi services. Google's Pixel 11 comes with plenty of AI features, raising questions about whether consumers want AI-powered grocery ordering and photo-taking. OpenAI tightens AI testing after a hacking incident, dedicating more computing resources to security.
CFTC considers AI compute futures as ICE and CME eye a new market, asking for public input on contracts for computing power underlying the AI sector. Hyperscalers' off-grid power push comes with risks as data centers' fluctuating demand tests off-grid systems. Memory stocks struggle for momentum with smart money moving on, as AI trade concerns overshadow strong fundamentals.
AI industry got the public backlash wrong about data centers, according to Jasmine Sun, as hyperscalers were blindsided by anti-data center sentiment. AI got wrong about the public backlash, with industry builders anxious about destabilizing job losses and existential risks. Tech billionaire Marc Lore bets that owning the entire food process—from production to delivery—will pay off with his Wonder platform targeting an IPO.
Banking & Finance
HSBC spends $68 million on its biggest cull of senior bankers since the financial crisis, reducing 134 highly paid executives in a restructuring effort. Goldman Sachs muscles into Indian banks' turf with state share deals, making inroads into government share sales traditionally dominated by local firms. Goldman Says slowing inflation is the best path to lower U.S. yields, despite Treasury's bond market efforts. Goldman JPMorgan among most bullish on Europe, taking stock of opportunities in European markets.
BlackRock Oaktree seized a movie servicer with a $900 million debt deal, taking over a firm providing lighting and rigging services for Hollywood productions. KKR Data Center chief vaulted to prominence with an Nvidia pact, as the $500 billion AI chip financing deal showcased key players. Goldman Sachs mulls a Core Weave-tied data center bond, sounding out investor interest on junk debt to fund construction leased to the neocloud firm.
Private credit's next big thing is $1 trillion in British pensions, with a deal including Standard Life, CVC, and Goldman Sachs tapping popular investor cash. Global credit giants lose ground to homegrown rivals in India as local firms wrestle control with larger capital pools and bigger transaction appetites. Private-equity firms clash over exit strategy for Ever Bank three years after their $1 billion buyout. Charlesbank nears a law firm deal as private equity pushes deeper into the U.S. legal sector.
M&A & Corporate News
Monte dei Paschi makes a $40 billion move to buy rival banks, launching all-share bids for Banco BPM and Banca Generali to fend off Intesa Sanpaolo. Monte Paschi offers €34 billion ($40 billion) for two Italian banks in a twin takeover bid to create a €70 billion banking entity. MPS plots dual takeovers to fend off Intesa Sanpaolo's acquisition attempt, marking another twist in Italian financial consolidation.
James Hardie sells its European Fermacell business for $980 million to Holcim, focusing on higher-growth markets. CK Hutchison files $1.5 billion arbitration against Panama over canal ports, escalating disputes caught in U.S.-China tensions. Freenet nears a deal to buy out minority Waipu.TV investors after abandoning plans to list the streaming platform.
EQT takes a majority stake in Melbourne Storm rugby league club, marking Sweden's EQT first foray into sports investing. EQT is said to mull selling English language schools in Vietnam, considering exits from its education portfolio. Sweden's EQT buys Melbourne Storm in its first sports deal, reflecting private equity's growing interest in sporting franchises. EQT maintains a steepener bet amid U.S. bond moves, maintaining exposure to widening yield curve differentials.
Geopolitics & Policy
Iran must plan to overcome unjust sanctions, according to top Tehran official Mohammad Bagher Ghalibaf after Trump vowed economic D-Day against Iran. Trump's order to cut military exercises with South Korea carries risks, as experts warn allies question U.S. commitment to longstanding partnerships. North Korea dismisses reduced drills between the U.S. and South Korea, with Kim Yo-jong claiming unawareness of any Washington communication.
Trump threatens Iran's trading partners with economic penalties, suggesting the U.S. will penalize countries doing business with Tehran. Iran weighs Europe strikes if the U.S. restarts war, according to regional assessments of escalating tensions. Houthis heighten global shipping risks as Iran exerts influence over the Strait of Hormuz, making Red Sea passageways more critical. Somali piracy surges with two hijackings in four days, as experts warn Iran conflict dynamics set the stage for a comeback.
U.S. debt hits $40 trillion amid ongoing fiscal pressures, as Trump nominates a Kennedy ally to lead the FDA. Treasury turns to interventionist tactics to lower interest rates, with Scott Bessent reinventing the government's role in the bond market. US Treasury bond buyback plan dismissed as inadequate by Wall Street investors, calling it a band-aid on a bullet hole. Healey warned to limit budget borrowing amid bond sell-off, as new chancellor plans to stay within Labour's fiscal rules.
Economic Indicators
India's economic activity edges up as services improve, offsetting a sharp manufacturing slowdown in August. Japan's inflation rises as the central bank weighs a rate increase, with the yen weakening despite joint intervention. Japanese inflation hits 1.9% as the BOJ eyes rate hike, adding pressure on monetary policy adjustments. BOJ under pressure to act on rates in September as yen weakness persists despite intervention efforts.
UK posts unexpected budget deficit of £1.8 billion in July, underscoring challenges facing Chancellor John Healey ahead of his first Budget. FTSE 100 steady as pound gains on rate outlook, with UK stock futures holding firm amid improved monetary policy expectations. Britain's food firms urge action on rising costs as drought hits ingredient prices, calling for relief from new Prime Minister Andy Burnham. Australia's NAB cuts banker jobs in its institutional division, reorganizing roles as part of broader restructuring efforts.
Back-to-school spending signals consumer trends, with retailers watching seasonal purchases for economic health indicators. Big Food's biggest challenge is consumers who don't want to eat anymore, as GLP-1 drugs threaten billions in packaged food sales. Target profits double after a $1 billion tariff refund, with higher sales boosted by Washington's tariff return program. Deere rallies as machine orders raise farm recovery optimism, with the tractor maker seeing increased agricultural equipment demand.
Market Sentiment & Analysis
Stocks and bonds steady at the end of a tumultuous week, with fears about Iran war, government deficits, and corporate borrowing stirring global markets. Stocks rise as Treasury steps in to support bonds, with Wall Street staging a rebound after plans to boost buybacks of longer-dated securities. US stocks fall as oil and yields climb while Walmart slumps on disappointing earnings. US stocks climb as bond yields dive on Treasury repurchase announcements, with US stocks rising on Treasury buybacks that calm bond yields.
BofA's Hartnett sees pressure on risk assets if the bond plan fails, warning that a failure in Treasury's long-term yield strategy would pressure the dollar and spur short bets against riskier assets. Markets brush off Treasury's buyback plans as mixed retail results offer gloom on American consumer health. Index funds went from being mocked to feared in 50 years, transforming market dynamics and concentration risks. Money-market funds provide stock market rocket fuel through ABCP mechanisms, amplifying leverage and risk-taking behavior.
Shorter is better to bond traders seeking shelter, with short-dated bonds becoming the hot safety play amid volatile markets. Bond investors choose Italy over France as elections loom, betting political drama will be more muted in Rome than Paris. Treasury yields steady as Treasury intervention struggles to convince investors, with bond yields holding close to flat after initial retracements.
Stocks rise as Bitcoin rally lifts crypto shares, with Asian markets facing mixed performance as bond yields climb. European indexes largely higher at open, with banking sector lifting the Stoxx 600 despite ongoing geopolitical uncertainties. Asia's smaller AI firms lead EM's bounce back, spreading the tech rally beyond chipmaking heavyweights into data center-focused companies. Asia's rising riches protect insurers against China's policy shifts as wealth accumulation outpaces developed economies.
Special Situations
MLB labor dispute drives record short interest in Braves stock as contentious negotiations raise disruption prospects. Braves stock faces record short interest amid MLB labor talks, with short sellers rapidly upping bets against Atlanta Braves shares. WuXi AppTec becomes top short target as 80% rally draws skeptics, with the Chinese biotech firm attracting growing bearish attention. Two Sigma lost a major investor over co-founders' feud, with billionaire John Overdeck citing disputes with David Siegel.
Plane crash near remote military radar site in Alaska kills, with the civilian-contracted plane crashing 450 miles from Anchorage. U.S.S. Lincoln begins 13,000-mile journey home amid grid shortage concerns, highlighting infrastructure vulnerabilities. U.S.S. Abraham Lincoln leaves Middle East after months at sea in operation against Iran, concluding a nine-month deployment. Weary U.S. aircraft carrier leaves Middle East as Russia exploits Ukraine's depleted stockpile, shifting regional dynamics.