Public Markets 8 Hours

Last updated: July 28, 2026, 11:30 PM ET

AI and Tech Sector Volatility

Chip stocks, leading to a mixed performance in U.S. markets. SK Hynix, a major memory-chip maker, saw its profits soar sixfold due to the artificial intelligence boom and secured multiyear contracts with about 10 customers. However, a single trade in SK Hynix shares reportedly resulted in a $60 million loss in. The broader AI sell-off also created a risk aversion on Wall Street, prompting hedge funds to face demands for more collateral. NXP Semiconductors reported a profit of $767 million, driven by growth across all end markets and regions, with particular strength in physical AI customers. Teradyne's profit also surged due to increased demand for its semiconductor testing equipment fueled by the AI boom. Seagate Technology reported a substantial increase in net income to $1.29 billion, up from $488 million year-over-year, as AI drove demand for data storage. The Nifty IT Index in India has seen its correlation with the Philadelphia Semiconductor Index fall to its lowest level since 2018, indicating a potential comeback for Indian IT stocks as global AI trade falters.

Commodities and Global Trade

Crude oil, spurred by a surprise missile attack from Iran and escalating tensions in the Middle East. This surge in oil prices ended several days of calm and renewed worries over energy supply disruptions. Gold edged lower ahead of the Federal Reserve's interest-rate decision, with a hawkish monetary policy backdrop continuing to pressure the precious metal. Hong Kong’s gold imports reached a decade-high in June, driven by preparations for a new clearing system and strong demand from mainland China. Separately, Treasury yields edged lower as hopes for a diplomatic solution between the U.S. and Iran pushed oil prices down, supporting demand for Treasurys. U.S. natural gas futures extended their decline for a fourth consecutive session, weighed down by solid production and inventories.

Corporate Earnings and Dealmaking

Rio Tinto reported a 47% jump in first-half profit, raising its interim dividend on the back of higher commodity prices, increased production, and a productivity drive. The miner also expressed optimism about AI demand for metals, anticipating that data center investments will increase the need for commodities. Thoma Bravo-backed software firm Proofpoint faces higher borrowing costs and tighter covenants in a recent debt deal, as AI risks drag on its refinancing efforts. Casey Wasserman’s talent and marketing agency will buy out his remaining stake using private-equity financing from Providence Equity Partners, ending months of uncertainty. Bloom Energy Corp. jumped after posting earnings more than double expectations and raising full-year guidance, signaling robust demand for its fuel-cell technology. The world’s largest asset manager, BlackRock, is planning to ramp up its private credit operations, aiming to challenge established players like Blackstone and Apollo.

Economic Indicators and Monetary Policy

Australian core inflation, prompting money markets to slash bets on further interest-rate increases by the Reserve Bank of Australia this year. Japanese government bond futures edged higher amid mixed signals in early Tokyo trade. Asian currencies consolidated against the dollar ahead of the FOMC decision, with traders assessing the prospects for a Fed rate hike. Meredith Whitney, a former bank analyst, warned of an economic reckoning in the U.S. during the fourth quarter, citing one-time economic boosts that are now fading.

Market and Sector Movements

Singapore stocks are on track for their best month in nearly six years, supported by a rally in banking shares. Japanese construction-related shares rose on expectations of rebuilding demand following a magnitude 7.1 earthquake on the southwestern island of Kyushu. Japanese stocks were higher in early trade, recovering modestly from previous sell-offs, with chip and auto stocks leading the gains. Value stocks have outperformed growth stocks this year, partly driven by early chip stock gains and a comeback in traditional value sectors.

Financial Services and Regulatory Watch

Morgan Stanley mortgage employees are reportedly facing backlash for questioning or rejecting loans for wealthy clients, though the bank states it has not compromised its underwriting standards. A former Goldman Sachs banker is on trial for allegedly paying bribes to Ghanaian government officials to secure a lucrative power plant deal. Citadel Securities' call for a Fed rate hike has added to market angst ahead of the Federal Reserve's policy decision.

Other Notable Developments

Fifa faces significant backlash over its plans for a $20 billion commercial stake sale, with criticism mounting from various figures, including the UK prime minister. Canada will abandon efforts to compel foreign streamers to finance domestic broadcasting, according to a court filing. The Writers Guild has withdrawn support from the Urbanworld film festival over its inclusion of a section for movies made with AI tools.