Public Markets 3 Hours

Last updated: August 4, 2026, 5:32 PM ET

Markets Surge on Geopolitical Easing and Tech Strength

U.S. stocks hit a new record high, with the S&P 500 climbing 1.8 percent and surpassing its early June peak. This rally capped a significant recovery from a recent downturn in technology stocks. The surge in equities was fueled by easing concerns over the Middle East and the artificial intelligence sector. Treasury yields declined as markets anticipated a potential deal to reopen the Strait of Hormuz. U.S. natural gas futures fell due to cooler weather forecasts and persistently high production and inventories.

Corporate Earnings and Dealmaking Activity

SpaceX reported a 92% increase in revenue for the second quarter, bringing in $7.8 billion and exceeding analyst expectations growth, the company’s shares experienced an 8% drop. SpaceX also saw its capital expenditures jump nearly sevenfold from the previous year, with significant spending on artificial intelligence. AMD's shares slipped after the company narrowly beat revenue forecasts, with data center sales now accounting for 58% of its revenue as it pivots to AI workloads. Match Group's profit was $170.5 million, but revenue decreased by 1%, primarily due to weak performance from Tinder. Gilead Sciences swung to a loss, attributed to research and development costs, although HIV drug sales boosted revenue. The company lowered its full-year forecast for Veklury as sales of its Covid-19 treatment fell 81% in the second quarter. Amgen raised its full-year revenue outlook to between $38.2 billion and $39.4 billion, while also halting early development of a potential obesity treatment. Booking Holdings increased revenue, driven by strong travel demand, despite having previously cut its full-year outlook due to concerns about the Middle East conflict impacting travel. Mattel posted a loss of $18.2 million, citing higher advertising and operating expenses.

Merger and Acquisition Landscape

A trial date in March has been set for the antitrust lawsuit challenging the proposed $81 billion merger between Paramount and Warner Bros. a November trial date for the lawsuit brought by state attorneys general. Paramount's streaming service demonstrated continued growth in the latest quarter, partially offsetting a decline in its television unit revenue. Cerberus Capital Management is seeking to raise at least $4 billion for its second supply chain fund, which will focus on investments critical to supply chain resilience.

Regulatory and Legal Developments

An appeals court ruled that the Environmental Protection Agency cannot block billions of dollars in climate grants that have been frozen since the early days of the Trump administration. The Justice Department has charged Dr. Stephen Dubin, a Nevada wound care doctor, in an alleged $95 million fraud scheme involving the application of unnecessary wound coverings to seniors. The department stated that Dr. Dubin used the profits from the scheme to purchase yachts.

International Relations and Diplomatic Tensions

U.S. stocks and oil futures surged on the prospect of a deal with Iran to reopen the Strait of Hormuz Bessent indicated that a deal could be reached "today or tomorrow". Oil futures fell to a three-week low following these statements. Separately, U.S. revoked the visa for Brazil's ambassador to the U.S. amid a diplomatic dispute over the U.S. choice for envoy to Brasilia. Dramatic foreign exchange interventions are underway to stabilize the weakening Japanese yen and avert a broader crisis.

Industry Trends and Economic Outlook

The flood of spending on artificial intelligence by major tech companies is beginning to benefit broader economic sectors, including industrial stocks, according to Wells Fargo. Lucid CEO Peter Rowley warned that the U.S. cannot remain isolated from competition posed by Chinese electric vehicles and announced a $1.4 billion cost-cutting program. The real estate investment trust Tanger Inc. raised its outlook for the second time this year, benefiting from increased domestic travel and early back-to-school shoppers boosting traffic and sales at its properties.

Other Notable Developments

An investigation into a fire that killed 19 people and destroyed the Altadena community in Los Angeles County concluded that the blaze originated at an inactive transmission tower belonging to Southern California Edison. Following the buckling of steel beams at a Midtown high-rise, city officials inspected dozens of other construction sites and found violations, though none posed an immediate danger. The former owner of a restaurant has returned as creative director, outlining ambitious plans despite lingering questions about the establishment's culture. A family is seeking answers regarding the death of an immigrant held at a detention center, alleging federal officials have refused to provide medical records. Photos indicate that parts of a new White House helipad, which had been decorated with a presidential seal, have been disassembled.