Last updated: August 6, 2026, 9:38 PM ET
U.S. Equities: Risk-Off Tone Grips Wall Street
U.S. stocks fell in a jittery session as doubts persisted over the reopening of the Strait of Hormuz following reports of an Iranian attack on "hostile targets" in the critical waterway. The Dow industrials led U.S. stocks mostly lower, poised to break its winning streak as oil prices advanced amid fresh uncertainty in the Middle East. The dollar finished its best day in two weeks as oil prices advanced, with fading optimism over easing tensions in the region underpinning the currency's strength. yields rose ahead of Friday's payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures.
Shares of memory-chip makers dropped on soft guidance, contributing to the broader market decline. The Dow's winning streak appeared set to end as investors weighed geopolitical risks against a busy earnings calendar. The jittery session reflected broader anxiety about the durability of any Hormuz agreement, with traders pricing in a prolonged period of supply disruption risk.
U.S. Equities: Earnings Season Highlights
DraftKings Inc. second-quarter sales and earnings that missed analysts' expectations, posting a loss of $67.6 million compared with a profit of $157.9 million a year earlier. The online sports betting company's revenue fell, hurt by promotional spending and a new competitive challenge from prediction-market players. The results came despite options traders piling into bullish wagers on Draft Kings ahead of the earnings report, reflecting elevated market expectations that the company ultimately failed to meet.
Instacart shares after the company reported revenue increased to $1.04 billion from $914 million, beating Wall Street's expectation of $1.03 billion. American International Group Inc. reported second-quarter results that surpassed Wall Street estimates, roughly two months after Eric Andersen took over as chief executive officer, citing strong underwriting performance. Consolidated Edison a second-quarter profit of $308 million, up from $246 million a year earlier, with revenue also improving for the New York-based utility.
Monster Beverage's 20% rise in second-quarter sales was driven by growth among customers outside the U.S., highlighting the company's international expansion momentum. Companies reported higher second-quarter revenue as its market share in both purchase mortgages and refinancings rose, benefiting from a competitive mortgage market. Lyft's second-quarter bookings rose to $5.5 billion, though the rideshare company expects bookings in the current quarter to rise at a slower pace of 15% to 19%.
Sweetgreen lowered its full-year outlook, now expecting same-store sales to drop between 7% and 8% due to lower demand stemming from the multistate cyclosporiasis outbreak, as its loss widened. Airbnb boosted its full-year forecast on strong demand, now expecting revenue to increase by at least a mid-teens rate this year, up from its prior projection for growth in the low- to mid-teens. The short-term-rental company's AI investments are paying off, helping to drive the improved outlook.
Asia-Pacific Equities: Fujifilm Tumbles, Nikkei Slips
Holdings Corp. tumbled by the most on record in Tokyo trading after the medical equipment maker reported first-quarter results that fell short of expectations. Japanese stocks were lower in early trade as uncertainty over the Middle East conflict and energy costs persisted, with the Nikkei falling 0.7% dragged by chip-related stocks. The decline in Japanese equities tracked weakness in the U.S. semiconductor complex and reflected ongoing geopolitical jitters.
Japan's Topix index is poised for its biggest overhaul, with more than 600 companies — over a third of its constituents — likely to be gradually removed under new eligibility rules. The impending cull is set to force a survival race among Japan's small caps, which will need to adapt to the new index requirements or face exclusion. The overhaul represents a significant structural shift for Japan's equity market, potentially redirecting passive fund flows toward larger, more liquid names.
Foreign Exchange: Yen Retreats, Asian Currencies Consolidate
Asian currencies consolidated against the dollar ahead of the U.S. nonfarm payrolls report due later in the day, with traders positioning cautiously. The yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains, fueling speculation among traders that authorities may step into the market again. A rarely used Federal Reserve liquidity facility saw no activity last week, suggesting Japan didn't use the tool in its latest effort to support the yen. Fed's Fima repo facility went unused for an eighth straight week, underscoring the limits of available intervention tools.
China is accelerating its push to internationalize the yuan as domestic banks add new foreign currencies available for direct settlement to bypass the dollar in cross-border trade. The expansion of direct settlement mechanisms is a key pillar of Beijing's strategy to reduce reliance on the U.S. dollar in global commerce. The dollar's strength against Asian currencies reflects both the resilience of the U.S. economy and the persistent geopolitical risk premium in the region.
Rates and Bonds: Treasury Yields Rise, JGBs Track Lower
yields rose ahead of Friday's payrolls report, as job-cut plans remained calm in July alongside low weekly jobless-claims figures. JGB futures fell in early Tokyo trade, tracking overnight price declines in the U.S. Treasury market. The move in Japanese government bonds mirrored the broader global fixed-income selloff, with traders recalibrating expectations for central bank policy paths.
Japanese companies have already sold more corporate bonds with investor protection this year than in all of 2025, as lower-rated borrowers increasingly turn to the bond market instead of relying solely on bank loans. rush covenant shelter reflects growing investor demand for downside protection amid a more uncertain credit environment. Daiichi Life Group Inc. has been stepping into bankers' shoes and contacting companies directly to see if they want to issue bonds, in an unusual investment tactic for an insurer. The top Japanese insurer's yield hunt is pushing it to take a more proactive role in the primary bond market, a sign of the intense search for income in a low-yield environment.
Commodities: Oil Extends Gains, Gold Steady
Oil rose in early Asian trade amid concerns over supply disruptions in the Middle East, extending gains on reports that Iran attacked "hostile targets" in the Strait of Hormuz. Tehran is seeking to bar U.S. ships from the critical waterway in a deal with Oman, according to reports, keeping the supply risk premium elevated. Oil gains as prospects for a lasting agreement to reopen the Strait of Hormuz remained elusive, with traders bracing for prolonged disruption.
Gold edged higher in early Asian trade, with markets likely monitoring signs of diplomatic progress in the Middle East conflict. Gold moved in a narrow range as traders assessed the impact of a reported Iranian attack in the Strait of Hormuz on the Federal Reserve's path for interest rates. On a settlement basis, Comex gold slipped 0.09% lower at $4,242.00, with gold and silver prices dropping and snapping two- and three-day winning streaks, respectively. The precious metal's resilience reflects its dual role as both a geopolitical hedge and a rate-sensitive asset.
U.S. imports of Saudi Arabian oil dropped to zero in July, the first time that's happened for an entire month since 1985, according to preliminary government data. The plunge in Saudi crude shipments to the U.S. reflects American refiners' pivot toward other sources, reshaping traditional crude trade flows.
Deals and Corporate Actions: M&A Activity Heats Up
Holdings agreed to buy Double Verify in a deal with an enterprise value of about $2.15 billion, marking a significant consolidation in the media measurement space. Kirin Holdings Co. is acquiring Toronto-based Jamieson Wellness Inc. in a deal that values the Canadian vitamins and supplements maker at about C$2 billion ($1.4 . The Japanese beverage maker's acquisition of Jamieson represents a strategic push into the health and wellness category, diversifying beyond its traditional beverage portfolio.
BlackRock TCP moved $523 million in loans to a Pantheon-backed fund, a deal involving nearly half of the lender's debt investments, with the company studying even more drastic moves. Jane Street is in talks to shift its $11 billion in debt to investors including Pimco, a private credit deal that would allow the secretive trading firm to make further investments in AI. The shift of Jane Street's debt to private credit investors underscores the growing role of alternative lenders in financing sophisticated trading operations.
SpaceX shares have propelled past the end of an epic lockup period, with retail investors seeing an "insane opportunity" to buy even as some analysts raise an eyebrow at the valuation. The post-lockup trading dynamics reflect the intense retail demand for SpaceX stock and the ongoing debate about whether the company's valuation is justified. Trump administration has agreed to roughly $4 billion in settlements this year to cancel planned offshore wind projects, including a $1.22 billion deal with German utility RWE AG announced Thursday. The settlements represent a major reversal of U.S. offshore wind policy, with significant implications for the renewable energy sector.
Cryptocurrency and Financial Infrastructure
Crypto trader Wintermute is stepping onto regulated Wall Street with a broker license, aiming to take on Jane Street, Citadel and other major market makers. The move is one of many by digital currency firms pushing into traditional finance services, blurring the lines between crypto and conventional markets. The Clarity Act debate continues, with the crypto lobby arguing it closes a payment loophole, though critics contend it does not. The regulatory skirmish highlights the ongoing tension between the crypto industry and policymakers over the scope of digital asset oversight.
Energy and Utilities Roundup
The Energy & Utilities roundup offers insight on crude futures, Harbour Energy and more, with oil markets remaining the focal point of investor attention. The tech, media and telecom roundup covers App Lovin, Warner Bros. Discovery and more reflecting the breadth of market-moving news across sectors. The Trump administration will impose a minimum import price for polysilicon, a key component for semiconductors and solar panels, as well as tariffs for products made with the material. The tariffs on polysilicon could have significant ripple effects across the electronics and solar industries, potentially raising costs for manufacturers.
Global Economic and Policy Developments
The U.S. is bolstering the yen, as it did with the Argentine peso, with the reasons not solely economic. The intervention reflects a broader geopolitical strategy rather than purely exchange-rate management, according to analysis. Malaysia's Prime Anwar Ibrahim's daughter has sought to relinquish her role as deputy president of his party, more than a year after her election fueled accusations of nepotism. The political development could have implications for Malaysia's policy direction and market sentiment.
authorities detained a former governor over charges he concealed evidence in the decade-old abduction and presumed murder of dozens of students training to be teachers. The arrest is one of the most significant developments in the long-running case, which has been a major source of domestic and international scrutiny. Mexico has also deployed hundreds of troops to secure avocado heartlands in Michoacán state, after violence prompted the U.S. to withdraw its inspectors and suspend imports of the fruit. The troop deployment underscores the security challenges facing Mexico's agricultural export sector.
Corporate Governance and Legal Developments