Public Markets 8 Hours

Last updated: August 5, 2026, 5:32 PM ET

Tech and AI Sector Movements

SpaceX shares saw a significant decline, sinking 13% after the company revealed substantial investments in artificial intelligence projects totaling $15.8 billion in the second quarter. Elon Musk's rocket company indicated it has no plans to slow down its AI spending, despite the market's negative reaction. This spending surge also unnerved investors, contributing to a drop in SpaceX's stock even as its quarterly revenues nearly doubled. The Nasdaq Composite saw a retreat around midday after an initial rally, though the Dow industrials advanced. This volatility in artificial intelligence-related investments contributed to a mixed performance in U.S. stocks, offsetting optimism about the reopening of the Strait of Hormuz. Google is reportedly reshuffling its senior AI ranks. Four top AI researchers have departed Google to form a new startup, with Jeff Dean, a former key executive, leading the new artificial intelligence company with backing from Google itself. The widening impact of U.S. intervention in the Japanese currency highlights how global markets revolve around investments in artificial intelligence.

Corporate Earnings and Outlooks

Block Inc. raised its full-year guidance and reported higher second-quarter revenue, driven by growth in its commerce and financial solutions businesses, which helped to offset declines in Bitcoin. Goodyear Tire & Rubber Company reported a loss of $204 million, or 71 cents a share, a stark contrast to a profit of $254 million, or 87 cents a share, in the same period last year, due to lower tire volume and higher costs. Zillow Group posted a loss of $4 million, with restructuring costs of $36 million negatively impacting its bottom line, despite an increase in revenue. Zillow's second-quarter revenue jumped 18% year-over-year to $772 million, with its rental segment showing particularly strong growth. App Lovin Corporation's quarterly sales fell just below analysts' forecasts, and the company issued a softer third-quarter outlook than Wall Street had anticipated. DoorDash Inc. reported a decline in profit, as increased costs of revenue from a higher order volume, alongside rises in sales, marketing, research and development, and other overhead expenses, offset revenue growth.

Retail and E-commerce Performance

Etsy Inc. plans to cut 12% of its workforce as part of the CEO's strategy to focus on the core marketplace, a move that comes alongside a quarterly report showing growth across the business and aims to adapt the marketplace to evolving online shopping habits. E.l.f. Beauty saw its sales climb 36% in the first quarter to $479.4 million, with the company raising its full-year sales guidance, partly fueled by the popularity of Hailey Bieber's Rhode skincare line. Shopify Inc. signaled an acceleration in revenue growth, forecasting increased third-quarter sales driven by artificial intelligence-driven search tools and broader merchant expansion, which are contributing to market-share gains. Bloomin' Brands Inc. raised its adjusted earnings outlook, indicating that customers at its Outback Steakhouse chain are opting for pricier steaks. MercadoLibre Inc. reported second-quarter sales that surpassed analysts' estimates, exceeding $10 billion and signaling sustained demand in both its e-commerce and fintech segments despite escalating competition.

Travel and Hospitality Sector Updates

Expedia Group Inc. increased its annual revenue forecast to between $16.05 billion and $16.22 billion, up from a previous range of $15.6 billion to $16.0 billion, citing higher revenue and profit. Disney's shares rose as its theme parks showed a rebound and the company announced an increased share buyback plan, boosted by the box office success of "Toy Story." Fans of the Apple TV show "Ted Lasso" are flocking to Richmond-upon-Thames, a picturesque London suburb that has long been a popular destination and filming location.

Commodities and Energy Markets

Copper prices rose to new record highs for the third consecutive trading session, with gold and silver prices also settling higher. U.S. crude inventories posted a weekly increase of 2.5 million barrels for the week ended July 31, contrary to expectations of a 1.2 million barrel decrease. U.S. natural gas futures traded in a rangebound manner ahead of the Energy Information Administration's weekly storage report. Fuel producers are expected to maintain high profit margins through the next quarter and beyond, according to an executive from a major U.S. refiner, who noted that skyrocketing fuel margins are likely to persist. The U.S. exported a record amount of distillate fuel overseas last week as domestic stockpiles continued to fall, indicating a global scramble for diesel that is increasingly draining U.S. supplies.

Financial Services and Investment News

Two private credit funds managed by Blue Owl Capital Inc. collectively bought back $90 million of shares, marking the second consecutive quarter of repurchases as the asset manager aims to stabilize the vehicles. Fitch Ratings announced it is upgrading 30 portions of collateralized loan obligations, adding to the hundreds of tranches it had previously considered for upgrades under a new methodology. CME Group and Fan Duel are scaling back a joint venture focused on prediction markets, having failed to gain significant traction in a rapidly growing industry. Ares Management is leading a $2.2 billion direct loan to finance a healthcare services acquisition, representing one of the largest deals in the private credit market since it experienced significant disruption. Carlyle Group Inc. is observing a thaw in capital markets, leading to a quicker pace of exits from investments across various industries, according to CFO Justin Plouffe. BC Partners' credit arm is reportedly leading a group of investors exploring a loan to LIV Golf, according to individuals familiar with the matter. Boeing Co. and Lockheed Martin Corp.'s rocket joint venture plans to tap the private bond market to refinance its debt. JPMorgan Chase hired M&A banker Amy Lissauer from Bank of America to lead its activism defense practice.

Global Trade and Regulatory Issues

The U.S. has suspended government activities in the Mexican state of Michoacán, impacting the import of avocados from the region, which is the country's largest producer of the fruit for the U.S. market. The European Union is scheduled to conduct an audit in Brazil at the end of August, which could allow the country's poultry exports to resume, avoiding a ban that is set to take effect on September 3rd. Colombian authorities intercepted a bus rigged with explosives in the country's southwest, highlighting security concerns ahead of President-elect Abelardo de la Espriella's inauguration. Iran stated that it has reached an agreement with Oman regarding the Strait of Hormuz shipping route, emphasizing its determination to maintain control over the critical chokepoint. Ghana's central bank incurred losses of 22 billion cedis ($1.9 in 2025 under a domestic gold purchase program designed to bolster the country's foreign-exchange reserves, according to the IMF.

Economic and Political Developments

Treasury yields edged slightly lower ahead of Friday's employment report from the Bureau of Labor Statistics, following weaker-than-expected private payrolls data. The cost of President Trump's envisioned "golden fleet" of 15 battleships could exceed $275 billion, according to a government estimate. At the White House's request, senators included a provision favored by the hemp industry in a crucial spending bill, which would benefit the son-in-law of Susie Wiles, the president's chief of staff. El-Sayed's Senate candidacy presents a significant challenge for the progressive wing of the Democratic party, testing whether an insurgent candidate with strong liberal positions can win a general election in a moderate state. Federal immigration officials have begun a new tactic of threatening to prosecute elected county sheriffs in Minneapolis and Chicago over their jurisdictions' cooperation with immigration enforcement. The federal government is terminating its contract with a Kentucky nonprofit following reports of abuses, alleging the organization pressured medical workers to remove organs from patients who were improving.

Company Restructuring and Workforce Adjustments

Etsy Inc. is laying off 12% of its workforce as part of a strategic refocus on its core marketplace, a move that aligns with its goal of adapting to changing online shopping behaviors.

Mergers, Acquisitions, and Valuations

Bending Spoons is acquiring Airtable for a valuation significantly lower than its last private valuation, a move described as a "kick in the gut" for software unicorns and their investors. Partners Group is nearing a €2 billion deal to acquire the beauty group Aroma-Zone from the French asset manager Eurazeo. Two private equity firms, CVC and Veritas, have made separate bids for the FTSE 250 industrials group Bodycote, valuing it at approximately £1.8 billion including debt.

Legal and Cybersecurity News

Major U.S. hedge funds, including Point72 and Citadel, have been targeted by a wave of sophisticated audio phishing cyberattacks. Federal and state officials are urgently addressing an assault on the nation's water supply, which they believe is the work of Iranian hackers, following years of warnings about vulnerabilities and neglect.

Other Notable Business and Market Developments

The Dutch owner of the Raleigh and Babboe brands, bikemaker Accell, has filed for insolvency four years after a €1.8 billion buyout led by KKR. LIV Golf is reportedly pursuing a "grand bargain" with the Saudi Public Investment Fund and BC Partners, with potential investors seeking assurances that the tour's star players will remain. Phillips 66 expects high fuel margins to continue through 2027, indicating that refiners are likely to maintain strong profitability. New York Times' stock plunged 13% as its subscriber growth slowed, despite an 11% increase in total revenue to $762.5 million in the second quarter.