Public Markets 8 Hours

Last updated: July 29, 2026, 2:30 PM ET

Geopolitical Tensions and Market Reactions

Stocks fell sharply as escalating Middle East tensions, including Saudi Arabian strikes in Iraq marking entry into the U.S.-Iran conflict, revived inflation concerns ahead of the Federal Reserve's rate decision. The conflict also slowed traffic in the Strait of Hormuz, prompting oil prices to rise and leading to a fall in U.S. crude oil inventories to "precariously low" levels disrupting supply. This disruption, coupled with attacks on ships in key Middle East oil routes across crucial Persian Gulf and Red Sea passages. Pakistan and Bangladesh have already more for LNG as the Strait of Hormuz remains closed. Treasury yields similarly boosted oil prices. The euro's potential benefit from a lasting U.S.-Iran peace deal remains uncertain due to a stronger correlation between oil prices and eurozone inflation expectations compared to the U.S. casting doubts.

Corporate Earnings and Financial Markets

Renault reaffirmed full-year and reported higher revenue, attributing the growth to cost-cutting efforts. In the health sector, Humana, though the unchanged guidance underwhelmed investors despite second-quarter results beating expectations, leading to a share price drop. GE HealthCare Technologies, driven by increased orders and healthy demand, with total orders rising 11%. Bausch + Lomb following a strong quarter, increasing its revenue target by $20 million. Boston Scientific, however, cut its view due to unexpected challenges with its Watchman heart implant. Meanwhile, the high-grade corporate bond market experienced its highest level of dysfunction in nearly three years in July, according to the New York Fed. Bank of Montreal covering approximately $5 billion of corporate loans, joining other Canadian lenders in capitalizing on strong investor demand for such instruments.

AI, Data Centers, and Tech Sector Dynamics

The burgeoning artificial intelligence sector is driving demand for specialized infrastructure, with data centers emerging as key growth drivers for companies like PPG Industries and Sherwin-Williams. The Energy Department is repurposing a former Cold War-era uranium enrichment facility into a data center campus, and Brookfield plans to convert a former nuclear weapons site into an AI campus in Kentucky turning sites. AI companies are also actively recruiting electricians and carpenters by the thousands to meet infrastructure needs recruiting thousands. Core Weave Inc. has sweetened terms on a $2.6 billion loan to expand computing capacity for AI firms like Anthropic PBC, as investors grow wary of AI-related debt. Nvidia's financing arrangements for its chips are being likened to a form of "circular financing" where the company essentially provides funds to enable customers to purchase more of its products writing cheques. The cost of financing artificial intelligence is also showing signs of pressure in credit markets, with the CDS market surging as Wall Street assesses AI winners and losers showing pressure.

Retail and Consumer Trends

Retail investors are demonstrating increased selectivity, offloading individual stocks at a pace not seen since the pandemic, according to Vanda Research. Greggs Plc shares soared as the baker defied fears of a peak in sausage roll demand, continuing its expansion despite skepticism about sustained appetite. The UK bakery chain's rally has also punished short sellers, as its pivot to colder items like iced matcha has resonated with consumers. Campari reported 2.5% organic sales growth, with its core aperitif business up 4%, offsetting a slump in U.S. bourbon demand. Procter & Gamble provided a soft outlook for the upcoming fiscal year, anticipating a $1 billion hit from increased costs related to the Iran war, and is working harder than usual to attract inflation-squeezed consumers for its Tide and Bounty products selling Tide.

Automotive and Aerospace Sectors

Airbus saw its profits climb as jet deliveries increased by 39% year-on-year in the second quarter, delivering 237 aircraft climbing as deliveries. BMW is considering job cuts, potentially affecting 8,000 employees, as it faces mounting challenges in China, following a reduction in its sales and profitability guidance due to fierce competition aiming to cut. Ferrari's electric vehicle, designed by Jony Ive, has already met its 2026 sales target, driven by strong demand from China for the model. Porsche and Aston Martin are also subjects of market talk within the auto and transport sector.

Mergers, Acquisitions, and Financial Deals

Grant Thornton's US arm has agreed to acquire CBIZ Inc. for $5 billion, marking one of the largest professional services acquisitions in recent years buying CBIZ. Bloomberg LP has agreed to acquire Canoe Intelligence, a platform that automates private markets data collection for institutional investors acquiring Canoe. The proposed $4 billion deal between Zijin and Allied Gold has collapsed due to objections from Chinese regulators deal collapses.

Regulatory and Political Developments

The U.S. high-grade corporate bond market experienced its highest level of dysfunction in nearly three years in July, according to a Federal Reserve Bank of New York index. South Korean regulators are moving to restrict access to leveraged ETF products after a significant fall in the Kospi index. In the UK, the CMA has decided not to pursue bans against two former Cinven executives over price gouging allegations. France is taking steps to expel a pro-Kremlin TV personality who features prominently on media owned by Vincent Bolloré expel personality.

Energy and Commodity Markets

U.S. refiners are producing fuel at a pace not seen since before the Covid-19 pandemic, but this is unlikely to curb soaring prices soon amid historic demand. U.S. crude oil inventories have fallen more than expected, decreasing by 7.2 million barrels in the week ended July 24 to.5 million barrels. U.S. natural gas futures held steady in early trading after four sessions of losses. Canada is increasing energy deals with Europe as a response to U.S. tariffs, with an agreement with a German natural gas company also aimed at reducing Europe's dependence on Qatari supply.

Other Notable Business and Market News

The U.S. Treasury is expected to avoid bond market disruptions ahead of midterm elections by holding off on changes to its quarterly refunding statement that could lead to larger bond sales. L'Oréal plans to more than triple sales of Gucci beauty products following its €4 billion acquisition of the beauty license from Kering. The Daily Mail publisher is seeking £10 million upfront from Prince Harry and other privacy claimants regarding costs from a lost lawsuit. The passing of renowned British bond investor Jim Leaviss, former head of fixed income at M&G Investments, at the age of 55 has been reported.