Public Markets 8 Hours

Last updated: July 17, 2026, 11:30 PM ET

Markets Digest: AI Selloff, Bond Rally, and Emerging Market Debt

The tech sector experienced significant volatility as AI-related stocks faced a sharp downturn. China's AI is reportedly adding fuel to a Wall Street chip selloff, with crowded into leveraged funds. This sentiment led to a that dragged the Nasdaq lower again. Amidst this tech turbulence as the world's most valuable company, escaping the AI sell-off that impacted chipmakers. Separately, Oracle's credit as concerns mounted over its aggressive cash burn and the future profitability of AI investments, prompting the company to to finance its data centers. Meanwhile, Treasuries posted as inflation optimism prevailed, leading traders to abandon bets on a July Federal Reserve interest-rate hike.

Geopolitical Tensions and Market Reactions

The escalating conflict between the U.S. and Iran continued to ripple through global markets. reported U.S. hitting infrastructure, including bridges and water plants, stretching the conflict into its seventh day. U.S. allies in the region also reported retaliatory strikes by Iran, as with strikes across the region. In response to the heightened tensions at the fastest pace in a decade. In other geopolitical news after a new Trump travel ban, though their employer stated they had shown no symptoms of the Ebola outbreak they were working to combat in the Democratic Republic of Congo.

Corporate Dealmaking and Venture Capital

Venture capital firms are reportedly rewriting the rules in what is being described as a once-in-a-lifetime IPO boom. The AI chip startup Etched is in talks for a $20 billion valuation, and is also raising capital in a separate round at a $10 billion valuation led by Sequoia Capital. eyeing $3 to replace private credit loans, with Deutsche Bank AG preparing to sell the debt. In a move that could signal a shift in investment strategies, short seller Fahmi Quadir is reinventing herself after years of targeting companies.

Political and Economic Developments

In the U.S., a coalition backed by tech investors is attempting to in California. On the political front, Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney are slated to with President Donald Trump. Meanwhile, charged hit-and-run in Napa Valley. Argentina's Neuquen province is preparing to pitch its first U.S. bond since 2017, leveraging its shale oil boom to attract foreign investors. WSJ Dollar this week to 97.09.