Public Markets 3 Hours

Last updated: July 14, 2026, 8:30 AM ET

Geopolitical Tensions Grip Markets, Fueling Inflation Fears

S&P 500 Index futures in early New York trading as investors adopted a cautious stance amid a bustling earnings calendar. Meanwhile, renewed missile attacks on vessels traversing the Strait of Hormuz, a development that is pushing U.S. Treasury yields higher and reigniting inflation concerns as military escalation in the Middle East drives oil prices upward. The heightened tensions over the Strait of Hormuz extending beyond oil and gas. President Donald Trump has further complicated the situation by reinstating a blockade of Iranian ships, while China has through the critical waterway. Trump's administration also announced plans to charge a 20 percent fee on cargo transiting the Strait, a move that according to his own administration.

Big Banks Report Record Profits Amidst Looming Risks

The largest U.S. banks collectively raked in tens of billions in profits during the second quarter, even as persistent inflation and geopolitical conflicts cast a shadow. However, despite these record earnings, significant "tectonic" risks loom over the sector. International Business Machines (IBM) shares of 24% following an earnings warning, citing delays in closing large deals and shifts in supply chains.

Emerging Markets Attract Investors with Strong Carry Trade Returns

Emerging-market bonds are outperforming Treasuries as a growing number of investors seek to capitalize on compelling carry-trade returns within the sector. Despite escalating Middle East tensions prompting caution, emerging-market stocks and currencies as markets awaited U.S. inflation data for further guidance on monetary policy.

Energy Sector Adapts to Shifting Landscape and Investment

SLB, the world's largest oil field service provider, is partnering with Liberty Energy Inc. to parts power for data centers, marking a notable diversification for energy companies. Separately, Nigeria has granted Shell Plc a production-linked tax credit for a deepwater project, an incentive aimed at boosting production and. Investment in commercial fusion energy is also on the rise, with hopes that the sector.

Global Economic Watch

Thailand has decided to for Indian tourists, a move that aims to revitalize its crucial tourism industry. In the U.S., small business confidence, with the National Federation of Independent Business reporting its optimism index rose to 97.4. Meanwhile, lead prices following the largest delivery into London Metal Exchange warehouses on record.

Monetary Policy and Tech Boom Concerns

Traders are now pricing in a nearly 50% chance of a July rate hike, spurred by a spike in oil prices and hawkish commentary from Federal Reserve officials. TS Lombard Chief Economist Freya Beamish suggests the Federal Reserve to curb the artificial intelligence boom gripping the U.S., arguing the central bank is behind the curve.

Corporate and Industry Briefs

Tower Semiconductor shares surged premarket following a $3 billion investment in expanding its chip production in Japan, with $1 billion coming from a government grant. In the world of entertainment, Brian Robbins’s Big Shot Pictures has taken a stake in the "Alvin and the Chipmunks" franchise, with plans for short-form content and a new movie. Deutsche Bank AG may prevail in a legal battle concerning losses linked to sanctions on Russia.