Public Markets 8 Hours

Last updated: July 16, 2026, 8:30 AM ET

Middle East Tensions Drive Market Volatility

U.S. stock futures fell 0.2% as intensified strikes against Iran, including an attack on an oil tanker near its main export terminal, unnerved markets. Bond investors are demanding the most compensation since October 2022 to fund Middle Eastern governments, with bond spreads hitting a 2022 high as fighting flares again between the US and Iran. Diesel prices have climbed 33% since the start of the Iran war, surpassing $5 a gallon again due to renewed fighting in the Persian Gulf and reduced refinery capacity in the US. Total Energies, however, expects a milder second-quarter production hit from the conflict than previously forecast after restarting some regional operations.

Corporate Earnings and Outlooks

Abbott Laboratories following stronger-than-expected second-quarter results across most of its business lines. GE Aerospace on higher sales and profit, now expecting adjusted earnings per share between $7.65 and $7.85, up from a prior range of $7.10 to $7.40. U.S. Bancorp achieved record quarterly revenue driven by robust loan growth, fee momentum, and a one-month contribution from its recent acquisition of BTIG. UnitedHealth Group also, substantially raising its full-year earnings projection.

AI Boom Fuels Infrastructure and Tech Investment

The operator of America’s largest electricity network is initiating an emergency process to address a projected supply shortfall, a consequence of the burgeoning AI boom in the US. Chipmaker TSMC is significantly increasing its capital spending and sales projections, with plans to, bringing its total commitment to Arizona operations to $265 billion. Goldman Sachs sees further gains for Europe’s AI infrastructure stocks, as hyperscalers are expected to. In Australia, environmental considerations are being introduced to regulate AI data centers, alongside efforts to protect creators' rights for AI training data in the country.

Global Dealmaking and Corporate Activity

ABB is set to acquire U.K. engineering group Rotork for £4.1 billion ($5.6 , driven by demand for data center products and an expansion of ABB's electrification and automation portfolios globally. Uber has agreed to a €13 billion deal to acquire Delivery Hero, with the German food delivery group spinning off its Turkish and some European operations. KKR & Co. and Energy Capital Partners have sweetened their bid for DCC Plc to over £5.7 billion ($7.6 , extending their takeover process. EQT AB is raising its tender offer price for Japan’s Kakaku.com Inc., intensifying a bidding war with LY Corp. and Bain Capital for the online data firm in Japan.

Energy and Commodity Markets

French power exports surged to a record in the first half of 2026, benefiting from a rebound in nuclear output and rising renewable generation, allowing the country a significant surplus of low-cost electricity to sell. Nickel climbed to a three-week high due to supply risks in Indonesia and evolving Federal Reserve expectations, with uncertainty over mining policy in the top producer clouding the supply outlook. China’s rare earth export curbs could place $6.5 trillion of downstream production outside the country at risk annually if fully implemented, according to the International Energy Agency report.

Market Trends and Investor Sentiment

Retail traders have transitioned from the fringes to the center of the stock market, altering the established order of trading. Emerging-market stocks resumed their decline, breaking a two-day rally, as South Korean authorities moved to rein in leveraged funds tracking chip giants like SK Hynix and Samsung Electronics in the region. South Korea will also temporarily halt new listings of single-stock leveraged ETFs to curb market volatility following a surge in popularity of funds tied to Samsung Electronics and SK Hynix stocks. Bullish equity investors have embraced a Goldilocks scenario, driving risk-on sentiment to a point where identifying triggers for the next upward move is becoming more challenging.

UK and European Markets

U.K. investors welcomed media reports suggesting Shabana Mahmood could become Britain’s new treasury chief, with the pound holding its gains on the news. The U.K. government has nationalized British Steel, its last major steel mill, after no private sector buyers emerged following its intervention last year to prevent the closure of the plant. Publicis raised its guidance, citing new business wins and benefiting from client demand for AI-powered marketing services in the sector.

Financial Infrastructure and Brokerage

Brokerage and financial infrastructure startup Alpaca has raised $135 million in equity and $300 million in debt, aiming to expand its services for investors trading across financial markets globally. The digital euro is preparing for beta testing, marking a new phase for EU digital finance initiatives. PwC and a partner were fined over £3 million for audit failings related to defense and aerospace group Babcock, with the regulator citing serious breaches in their work on the company.