Public Markets 8 Hours

Last updated: August 5, 2026, 11:32 AM ET

Tech and AI Drive Market Gains

Futures S&P 500 climbed, signaling another record high as the narrative around artificial intelligence spending continued to hold strong. A dramatic turnaround in technology stocks has propelled a $3.5 trillion increase in the Nasdaq 100’s market capitalization in just four days, fueled by robust earnings that have boosted investor confidence. Sentiment has completely reversed from the previous month, with tech euphoria returning in a mere four days. Chip maker Infineon forecasts strong revenue growth, projecting approximately $18.80 billion for the current fiscal year as the race to build AI infrastructure continues to drive red-hot semiconductor demand. Siemens Energy orders reached record highs, driven by demand for U.S. data centers and surging global electricity needs, leading to a record fiscal third quarter. Ken Griffin’s Citadel fund surged 6% after acquiring billions of dollars of AI stocks from Leopold Aschenbrenner’s firm. Citadel’s purchase of Situational Awareness’s stocks at a discount is already proving profitable, with the firm gaining approximately 14% in its stock-focused hedge fund in July.

Corporate Earnings and Outlooks

Shopify has allayed fears of a midyear slowdown, forecasting accelerating third-quarter sales growth as artificial intelligence-driven search and broad merchant expansion fuel market-share gains. Brands raised its adjusted earnings outlook, as customers at its Outback Steakhouse chain are opting for pricier steaks. Shake Shack reported higher second-quarter sales, but profit slipped due to increased operating expenses. Dine Brands recorded higher sales and lower profit in the second quarter, with IHOP’s growth helping to offset a decline at Applebee’s. New York Times Company reported higher profit and revenue in the second quarter, although subscriber growth slowed sequentially. The New York Times’ revenue increased by 11%, adding 280,000 digital subscribers in the second quarter. Technologies notched higher revenue in the second quarter, driven by growth in its delivery business as the company continues to expand volumes and active users. Uber is pledging $10 billion to win the robotaxi race, with Chief Dara Khosrowshahi lauding strong bookings and record cash flow as the company seeks to fund its costly autonomous vehicle push. Wayve Uber have received approval for supervised robotaxi rides in London, with Transport for London granting private-hire vehicle licenses to Wayve’s autonomous vehicles, which will operate with a driver ready to take control when necessary.

Retail and Consumer Goods Performance

Kraft Heinz experienced lower profit and sales in the second quarter, but raised its sales outlook as it aims to mitigate higher supply costs by increasing prices. SharkNinja raised its full-year outlook after second-quarter sales rose due to strong demand across its product lineup, led by cooking appliances, beauty products, and international markets. Coca-Cola HBC’s net profit increased on higher volumes, with revenue per case rising and earnings boosted by growth in both its sparkling and energy segments. Heineken provided an upbeat full-year forecast after sales volumes picked up pace, despite weakness in the Americas, suggesting new markets and a focus on premium labels are helping brewers recover from a lengthy slump. U.K. retailer PLC now targets $1.67 billion in pretax profit, with its stock having risen 19% year-to-date.

Pharmaceuticals and Health Care

Eli Lilly and Novo Nordisk have raised their profit outlooks as demand for weight-loss drugs soars, though investors are taking a dim view of Novo's over-reliance on obesity treatments. Eli Lilly reported higher net income and revenue in the recent quarter, fueled by continued surging demand for its GLP-1 weight-loss drugs. CVS Health is revamping its weight management program through a partnership with Eli Lilly and has lifted its full-year outlook, reporting a nearly threefold increase in its second-quarter profit. Sandoz Group reported higher second-quarter sales, driven by a strong performance in its biosimilar segment and a return to growth in generics.

Energy and Commodities

U.S. natural gas futures saw a slight increase in early trading. Demand higher taxes on oil and gas profits to fund wildfire prevention has been voiced, as Shell and BP declared their highest quarterly profits in four years. President Trump criticized Big Oil regarding high gas prices, echoing a strategy used by his predecessor. 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 steadily amid elevated uncertainty over the Iran war.

International Markets and Deals

Brazil’s Cia. Siderúrgica Nacional (CSN) is seeking at least 15 billion reais ($2.9 for its cement business and anticipates receiving four bids as it moves to sell the entire unit. Malaysia continues to attract strong foreign investor interest despite growing political uncertainty following local election setbacks for Prime Minister Anwar Ibrahim’s coalition. Kazakhstan plans to return to the yuan debt market this year, seeking to tap cheaper financing from China as Central Asia’s largest oil producer. The U.K.’s top financial regulator is changing its rules around information sharing for initial public offerings, aiming to make London a more attractive listing destination. European stock indexes rose at the open, extending a series of record highs, with the Stoxx 600 index up and industrial and retail stocks gaining. India is not considering an early closure of a program aimed at attracting deposits from its diaspora, expecting robust inflows until the window closes. investors largely stayed on the sidelines for India’s share sale in Life Insurance Corp., signaling uneven demand after strong institutional bids led the government to increase the offering.

Political and Regulatory Developments

Representative Shri Thanedar was ousted by a Democratic Socialist in a Michigan House primary, joining a wave of incumbents facing primary voter discontent this cycle. Dr. Abdul narrowly prevailed over Representative Haley Stevens in the Democratic primary for Senate in Michigan, setting up a competitive race for November. A nail-biting Democratic Senate primary in Michigan is being closely watched. Chuck Edwards, a Representative, has withdrawn from his re-election bid in North Carolina following an ethics rebuke. The Trump administration’s new safety review guidelines for artificial intelligence appear to exempt Chinese AI models, unlike those from OpenAI and Anthropic. The U.S. Treasury has retained its previous guidance for future debt issuance, signaling no change in note and bond auction sizes through 2027, even as federal borrowing needs increase. The U.S. is halting exports of various used critical minerals, including scrap tungsten and ‘black mass’, for one year, as part of a push to reduce reliance on China and secure raw materials for defense and other industries.

Geopolitical Tensions and Conflicts

Israel struck Lebanon after accusing Hezbollah of violating a cease-fire, even as Israeli and Lebanese negotiators held talks in Rome aimed at fostering a long-term diplomatic settlement. The Houthis have threatened to expand their Red Sea attacks and claimed a strike on a Saudi tanker, with Saudi Arabia not having commented on the claim by the Iran-backed group that vows to close "all access routes" to Saudi oil shipments. Russia's deadly missile attack on Kyiv has exploited Ukraine's depleted air defenses, killing at least 17 people as the country runs critically low on interceptor missiles. Ukraine war has evolved into a fight for the skies, with both Russia and Ukraine producing an increasing number of innovative aerial weapons in hopes of a breakthrough as ground combat remains largely frozen. U.S. futures are higher, and oil is holding around $80 on hopes for an imminent reopening of the Strait of Hormuz. A rally across global stock markets has continued, with sentiment boosted by the prospect of a U.S.-Iran agreement to reopen the Strait of Hormuz.

Other Market Developments

Vusion is in the early stages of exploring strategic options, including a potential sale. Gabon has become a top performer in emerging sovereign bond markets, buoyed by expectations that an International Monetary Fund program will help it avoid a debt restructuring. Emerging-market carry trades are showing resilience, even after joint U.S.-Japan currency intervention dented the appeal of yen-funded strategies. Barclays Plc and HSBC Holdings Plc suggest that concern over the Federal Reserve’s slow response to inflation is giving investors another reason to buy bonds offering protection against accelerating price growth. India's two bourses introduced an auction to determine the closing price of over 200 stocks with derivatives contracts, a move that is confusing traders.