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Last updated: August 5, 2026, 8:32 AM ET

Tech and AI Fuel Market Gains

Futures climbed on Wednesday as a fresh wave of earnings reports pointed to robust demand for artificial intelligence technologies. SpaceX reported higher-than-expected AI-related outlays, contributing to the positive sentiment. A dramatic turnaround in technology stocks has powered a $3.5 trillion increase in the Nasdaq 100's market capitalization in just four days. This tech-driven rally has the S&P 500 poised for another record close. Sentiment has turned around completely from the previous month, indicating a strong resurgence in tech optimism. Chip maker Infineon forecasts strong revenue growth on booming AI demand, expecting revenue of roughly $18.80 billion for the current fiscal year. Siemens Energy orders reached record highs, driven by U.S. data-center demand and surging global electricity needs, leading to a triple profit in its fiscal third quarter.

Corporate Earnings and Outlooks

Kraft Heinz raised its sales outlook despite lower profit and sales in the second quarter, aiming to offset higher supply costs through price increases. Shopify posted a significant surge in second-quarter profit, propelled by gains across both its subscription software and merchant services units. Thomson Reuters bumped up its revenue targets for the year after achieving double-digit growth across its three major business segments in the latest quarter. SharkNinja raised its full-year outlook following a second-quarter sales jump, with growth led by cooking appliances, beauty products, and international markets. Eli Lilly reported higher net income and revenue, fueled by sustained high demand for its GLP-1 weight-loss drugs. CVS Health will revamp its weight management program through a partnership with Eli Lilly, lifting its full-year outlook and reporting a nearly threefold increase in its second-quarter profit. Next PLC raised its outlook for the third time this fiscal year, driving its shares to a record after sales surged in the second quarter due to warm UK weather and pent-up demand. Coca-Cola HBC reported a rise in net profit on higher volumes, with revenue per case increasing and earnings boosted by growth in both sparkling and energy segments.

Global Markets and Economic Trends

European stocks rose at the open, extending a series of record highs, with the Stoxx 600 index gaining as industrial and retail stocks performed well. Treasury yields declined as investors remained optimistic about a potential deal that could lead to the reopening of the Strait of Hormuz. Gold prices climbed above $4,200 as signs of diplomatic progress in the Middle East tempered fears over inflation and interest-rate hikes. The dollar traded steady amid elevated uncertainty over the Iran war. Kazakhstan plans to return to the yuan debt market this year, seeking cheaper financing from China as Central Asia’s largest oil producer. China sold long-dated yuan-denominated sovereign bonds in Hong Kong at record-low yields, highlighting strong global investor demand for offshore issuance. Malaysia continues to attract strong foreign investor interest despite growing political uncertainty following election setbacks for Prime Minister Anwar Ibrahim’s coalition. India is not considering an early closure of a program designed to attract deposits from its diaspora, expecting robust inflows until the window closes.

Automotive and Transport Sector

Honda Motor raised its profit outlook after quarterly results, including its motorcycle business, a weak yen, and U.S. demand for hybrids, reached a record. The Japanese automaker is aiming to improve its hybrid EV offerings to bolster its car business's profitability. Schaeffler AG plans to cut its German workforce through an expanded phased-retirement program, as weak automotive demand continues to pressure the supplier. GM and China’s SAIC will extend their joint venture partnership for 20 years, with plans to launch at least 30 new-energy vehicles by 2030 and deploy China-developed tech solutions. Cathay Pacific posted its strongest first half since 2010, with increased passenger and cargo traffic offsetting a surge in fuel prices, though it flagged fuel risks.

Company Deals and Strategic Moves

Allianz SE agreed to acquire the asset management unit of Singapore’s United Overseas Bank Ltd., marking the German insurer’s second major deal as it targets Asia. Glencore Plc reported a steep jump in profits, driven by a surge in commodity prices and a strong performance from its trading unit, with the Iran war sending energy prices soaring. The miner also confirmed it has taken a provision on its exposure to iron ore trader Radiant World and ceased new business with the firm. Glencore plans a secondary listing in Australia, as it has long complained its London shares are undervalued. Uber is seeking to fund a costly autonomous vehicle push, with Chief Dara Khosrowshahi lauding strong bookings and record cash flow as the company pledges $10 billion to win the robotaxi race. Wayve and Uber have received approval for supervised robotaxi rides in London, with Transport for London granting private-hire vehicle licenses to autonomous vehicles that will operate with a safety driver.

Energy and Commodities

U.S. copper futures traded near an all-time high as investors awaited a decision on U.S. tariffs and tracked efforts to reopen the Strait of Hormuz, which boosted demand for risk assets. Supplies of an ultra-refined form of aluminum used in fighter jets are tight after drones damaged a UAE plant, exposing U.S. military aluminum risks. Abu Dhabi’s Adnoc Distribution reported a sharp jump in quarterly profit as higher fuel sales, inventory gains, and stronger margins lifted earnings. The Pacific island of Palau is fundraising for a transition to clean energy, looking to move away from diesel.

Regulatory and Political Developments

The U.K.’s top financial regulator is altering its rules for initial public offerings to make London a more attractive listing destination. Washington announced a year-long ban on overseas sales of scrap tungsten and “black mass,” impacting exports of various used critical minerals. The House Ethics Committee recommended that Representative Chuck Edwards be censured for “persistent unprofessional and inappropriate conduct” toward two female staff members, leading him to drop his re-election bid. Finland, wary of misinformation, has a leg up in spotting fake news but faces new challenges with AI, especially with Russia in mind.

Financial Services and Investment

Carlyle Group posted its highest distributable earnings in nearly four years, as the buyout firm continued to have record capital available for investment. Ken Griffin’s flagship fund, Citadel, gained about 14% in its stock-focused hedge fund in July, following its purchase of billions of dollars of AI stocks from Leopold Aschenbrenner’s firm. Bankers are betting on supersize bonuses this year due to volatile markets and huge stock offerings fueling Wall Street profits. The case for active quantitative tightening by the Bank of England is weakening.

Media and Entertainment

The New York Times added 280,000 digital subscribers in the second quarter, contributing to an 11% rise in revenue. Disney’s third-quarter revenue increased 7% to $25.2 billion, driven by growth from its experiences unit, including theme parks. Disney’s domestic parks and cruises revenue rose 11 percent in the latest quarter, with theme parks often seen as a bellwether for consumer confidence. Disney also said it would allow “thoughtfully curated” fan-created videos, using clips from its library, to appear on the Disney+ streaming service.

Challenges and Risks

SpaceX's shares slid in pre-market trading even as the group reported its quarterly revenues nearly doubled, with investors unnerved by lavish AI spending plans. None of SpaceX’s most ambitious plans are possible without the success of its Starship rockets. The fastest-growing Ebola outbreak is becoming deadlier on paper, as too many people reach treatment only after the disease has become critical. Russia's missile attack on Kyiv killed at least 17 people, officials said, as Ukraine is running desperately low on interceptor missiles. The aviation supply chain is currently buoyant, but its performance could be impacted if customers begin to struggle. The New York Times’ travel reporter experienced a difficult summer vacation, facing wildfire smoke and airport chaos.