Public Markets 8 Hours

Last updated: July 9, 2026, 11:30 AM ET

AI Frenzy Drives Deal-Making and Corporate Strategy

This year’s global deal-making valuation has reached $3.2 trillion, the highest six-month total in a decade, fueled by the artificial intelligence economy spurred by AI. JPMorgan Asset Management notes investors are becoming more adept at discerning AI-related risks and rewards. BlackRock sees AI capital expenditures remaining stable for two to three years, suggesting sustained investment in the sector. The dominant tech trade of buying chip stocks and selling software is showing signs of fatigue. Tera Wulf Inc. is seeking $3.5 billion in debt to build a data center campus, marking its entry into the leveraged loan market. Computacenter shares rose as the company benefits from demand for data center infrastructure amid the AI boom. In a separate development, Apollo is set to begin trading on a $35 billion financing package for Broadcom Inc. and Anthropic PB, the largest private credit deal on record.

Geopolitical Tensions Ripple Through Energy and Defense Markets

Renewed fighting between the US and Iran has disrupted a fragile peace-trade rally, with Iran rushing out approximately 11 million barrels of oil in the past 24 hours. Tensions are causing caution among shipowners, with London marine insurers reporting fewer inquiries for journeys through the Strait of Hormuz and rising costs for cover. Qatar has paused efforts to increase liquefied natural gas production following an attack on one of its tankers in the Strait of Hormuz. US natural gas futures remain subdued due to adequate supply and above-average storage levels. Germany is acquiring US Tomahawk missiles as part of a deal struck during a NATO summit. European defense sector valuations are expected to rise further as government spending increases translate into orders.

Corporate Earnings and Strategic Shifts Face Economic Headwinds

Pepsi Co’s CEO, Ramon Laguarta, is navigating inflation and the impact of GLP-1 drugs by focusing on smaller-portion products and teas aimed at mental focus. Seven & i Holdings, owner of 7-Eleven, raised its annual guidance after higher gasoline prices boosted earnings at its North American convenience store business. Hugo Boss AG recommended shareholders reject Frasers Group Plc’s takeover offer, stating it undervalues the German fashion company. Poland’s Erste Group Bank AG shares are projected to rally 30% due to growth from its expansion in Poland, according to Goldman Sachs. UK company Capita Plc’s shares fell sharply after it announced profit and cash flow would be impacted by failures related to managing Britain’s civil service pension plan.

Market Infrastructure and Regulatory Scrutiny

The Commodity Futures Trading Commission is blocking CME Group Inc.’s proposal for 24/7 trading of oil futures. CME Group is also facing a regulatory block on its bid to fast-track round-the-clock oil contracts. Separately, CME launched a new product designed to simplify basis trade bets, aiming to reduce costs for a popular hedge fund strategy. The US military struck Iran for a second day, leading to a rise in S&P 500 Index futures. German bond yields dipped as investors monitored Middle East tensions, following a spike on Wednesday.

Global Trade and Economic Policies Under Review

European Commission has launched a probe into alleged dumping of subsidized Peking duck by China, heightening EU-China trade tensions. Thailand and Malaysia have resolved a seafood trade dispute, allowing for a return to normal fishery trade. France plans to invest €2 billion ($2.3 to reduce its reliance on fertilizer imports, aiming to shield farmers from supply disruptions. Germany’s exports unexpectedly increased in May, showing a fourth consecutive month of growth, driven by a rebound in shipments to the US. Argentina is meeting its debt obligations without issuing new sovereign bonds, repaying $4 billion.

Ukraine’s Defense and Global Alliances

President Trump announced the US would license Ukraine to produce Patriot air-defense systems, though production could take months or years. Germany and Japan, already licensed to build the American interceptors, serve as cautionary examples for Ukraine. At a NATO summit, President Trump focused on demands for loyalty while the alliance moved toward greater European responsibility for defense.

Other Market Developments

Nigeria’s $22 billion pension industry is considering launching a fund to support infrastructure upgrades in Africa’s most populous nation. Mavik Capital Management is seeking $1 billion to acquire distressed commercial real estate assets. Bank of Nova Scotia has re-entered the precious metals trading business, exiting the sector in 2020. Vale SA, the world's top iron ore producer, is facing scrutiny from Brazil’s securities regulator regarding its board chair’s exit compensation. Los Angeles grade school is planning to sell $32 million in municipal bonds.