Last updated: August 26, 2026, 2:51 PM ET
Macro & Rates
The dollar rose by the most in nearly four weeks, recovering about half of the losses triggered by Treasury Secretary Scott Bessent’s surprise move last week to prop up the bond market, as inflation data came in hotter than expected. The Personal Consumption Expenditure index, the Federal Reserve’s preferred inflation tracker, held steady in July, remaining above the Fed’s 2% target amid elevated energy costs. Treasury yields edged higher alongside the greenback, with traders scaling back expectations for aggressive easing later this year.
Bessent now faces a credibility test in his quest to tame markets, confronting the limits of his ability to reshape the economy ahead of midterm elections. His "D-Day" sanctions push against Iran, however, is unlikely to be a game changer for global markets, according to risk analysts, even as the administration vows to go after more than just Tehran’s oil. The U.S. threatened sanctions for any country or entity that engages with Iran’s gold, digital assets, aviation, shipping and tech industries, a move that could have broad implications for commodity and crypto flows.
Equities
US stocks treaded water on Wednesday as investors digested the inflation data and waited for earnings from chipmaking giant Nvidia Corp. The world’s most valuable company reported after the close, with futures pointing lower into the print amid concerns about valuation and AI spending sustainability. Broader indices inched lower, with the S&P 500 and Nasdaq both posting modest declines.
Nike is on pace for its worst year since Michael Jordan’s 1993 retirement, as the sneaker giant struggles with fading demand and inventory gluts. Hochschild Mining shares jumped after first-half earnings soared, with average gold prices up 47% and silver prices 130% higher year over year. Abercrombie & Fitch lifted its outlook after profit and sales rose, benefiting from tariff refunds and consumers’ continued willingness to buy new clothes despite inflation. Bath & Body Works logged higher profit after its digital business returned to growth for the first time in five years, though management remains cautious about the consumer environment.
Kohl’s reported lower sales and profit in the second quarter, with executives saying lower-earning shoppers are feeling particularly pinched and pulling back on discretionary spending. J.M. Smucker swung to a profit and lifted its forecast, now expecting net sales to decline just 1% to 2% in fiscal 2027 versus a prior 3% to 4% decline. Intuit’s CFO defended the tough choice to lower 2027 revenue guidance amid a shift toward AI-driven products. Durable-goods orders rose 1.1% in July to $339.3 billion, beating forecasts and accelerating from June’s 0.5% increase.
Deals & Corporate Actions
Victory Capital Holdings agreed to acquire First Eagle Investments for about $7 billion, creating one of the largest publicly traded traditional asset managers in the U.S. The deal is part of a broader consolidation wave in the fund industry, with asset management deal volumes reaching $53.8 billion this year, the highest since at least 1995, according to Dealogic. Vanguard, the world’s second-biggest investment firm, is making a bigger push into financial advice with its $4 billion acquisition of wealth management platform Altruist.
Sports streaming platform DAZN is expanding further into the US with the acquisition of EverPass Media, which holds commercial rights to live sports properties including NFL Sunday Ticket. KNDS NV is set to restart investor meetings about a possible IPO this year, after a downturn in defense stocks thwarted earlier listing plans. Prudential Plc plans to sell a 2% stake in India’s second-largest asset manager for as much as $327 million to comply with minimum public shareholding rules.
Mark Walter’s TWG Global is insisting there is no "fire sale" and "no fraud" amid what it calls "multipronged attacks" on its investment empire, which includes stakes in high-profile sports teams. Arini Capital Management, Silver Point Capital and King Street Capital Management are among a subset of Altice International creditors seeking better terms than other lenders in any restructuring deal. Samsung was ordered to pay Swatch $11.6 million over copycat smartwatch apps, far below the $170 million the Swiss watchmaker had sought in the London copyright lawsuit.
Energy & Commodities
US supplies of diesel have fallen to the lowest seasonal level ever, threatening to push prices even higher for the global economy’s workhorse fuel just as heating and agricultural seasons begin. The diesel crunch has gotten so severe that Europe is drawing on imports from Mexico for the first time in seven years, as the Iran war and a halt in Russian cargoes upends historical trade flows. Diesel prices are nearing record highs, helping oil companies but hurting consumers who rely on the fuel for farm machinery, trucks and heavy equipment.
Oil futures extended their decline into a third session on Middle East optimism, with renewed moves toward a reopening of the Strait of Hormuz after the U.S. outlined tighter economic sanctions on Iran. Iran and Oman said they would create a temporary shipping lane and clear mines in the waterway, and global oil prices eased after the joint announcement. Freight rates remain at record highs even as oil prices fall back, with one shipping boss warning the Iran war is approaching a Ukraine-style stalemate.
The world’s top container shipper, MSC Mediterranean Shipping Co., has suspended new bookings to and from Russia’s Novorossiysk port after one of its vessels was attacked by a drone. US crude inventories saw a modest weekly build, with commercial stockpiles rising by 95,000 barrels to 428.9 million barrels. US natural gas futures were higher with several more weeks of hot weather likely to drive cooling demand. South Africa will likely reap the smallest wheat crop since 2019, with output expected to drop 7.5% from a year earlier. Global fuel markets have little margin for error, with the world relying heavily on US refineries just as those plants are pushed to their limits. The looming threat of El Niño to the global food system demands better preparation for big recurring shocks to agriculture.
Currencies & Rates
The Colombian peso’s stunning rally lost momentum this week as the local financial system ran short of dollars, exposing the limits of the currency’s carry appeal. Asian currencies consolidated amid Middle East diplomatic signs, with the dollar remaining higher after the PCE data. The greenback's strength comes as investors weigh the implications of Bessent's bond-market intervention and the Fed's path forward.
Investors are no longer choosing between gold and Bitcoin as hedges against fiscal anxiety — they're buying both, with Bitcoin and gold ETFs drawing $7 billion in combined inflows. Indians sent a record amount of money abroad in June to buy equity and debt, accelerating a trend among local investors to diversify their portfolios overseas.
Regulation & Policy
Meta agreed to pay up to $16.7 billion to settle a landmark children's social media harm case, with the social media giant settling with 47 states, the District of Columbia and U.S. territories. The settlement, which could reach $17.1 billion, includes agreements to set more time limits and enhance protections for young users on Instagram and Facebook, though specifics remain short. Landmark trials are also testing a new legal strategy claiming that Meta, TikTok, Snap and YouTube caused personal injury through addictive products.
The Trump administration wants billion-dollar businesses to qualify as "small," proposing higher revenue and employee limits for federal contracts and loans — a move that could disadvantage the smallest companies. Italy’s government extended a tax cut on diesel fuel prices until Sept. 5, as pressure mounts on Prime Minister Giorgia Meloni to shield consumers from soaring pump prices ahead of a general election. The UK Treasury gave the Bank of England a new legal objective to boost innovation in digital currencies as part of an effort to promote the UK as a hub for stablecoins. Banks that once fought against stablecoins are now considering launching their own, as executives find themselves on the defensive against companies outside the banking system. Reform UK, Nigel Farage's party, is wooing business by pledging to scrap the General Data Protection Regulation if it wins power.
India’s food regulator issued a notice to the JW Marriott hotel in New Delhi’s Aerocity over serious safety and license violations, continuing a crackdown across the country. Canada is retaliating with new duties ranging from 15% to 50% on about $20 billion of goods, part of a broader opposition to Trump's tariff playbook.
Infrastructure & Transport
Passenger traffic at Dubai International — one of the world’s busiest international aviation hubs — fell 30% in the second quarter from the first, as the Iran war disrupted Gulf aviation. A worker died after an accident involving an Airbus A350 operated by French Bee at Montreal’s airport, according to Canada’s Transportation Safety Board. Some of the Nordic region’s biggest companies and wealthiest investors are working on a proposal to create a single, unified stock exchange. Pony AI's robotaxis, airline stocks and Aeroports de Paris feature in the latest auto and transport market talks.
Markets & Technology
Anthropic’s $30 trillion total addressable market estimate is unbelievable because it's meant to be, as the trillion-dollar TAM wars heat up between AI companies and space ventures. The quantum threat remains a growing concern for cybersecurity, while fake "Grand Theft Auto" demos are unleashing malware, according to the latest security briefings. Creator-first answer engine optimization is emerging as the new frontier in digital marketing, with companies like Dick's increasing promotions to stay competitive.
Global & Geopolitical
Singaporean police raided the local office of iron ore trader Radiant World last week and questioned some of the firm's employees, part of an investigation that appears to be widening. Over 100 Indian pilgrims are among the missing in Nepal floods, many of them traveling to or from a Himalayan peak revered by Hindus as the spiritual home of the god Shiva. Scientists say the deadly Nepal flood may have been caused by an "ice avalanche" from a high-altitude glacier that sent a giant cascade into the valley below, based on initial satellite imagery assessment. The Sierra Nevada region's Hawk fire has proven Reno's wildfire risk is real, providing impetus for hardening communities against catastrophe.
Ukraine's most potent weapon is the software orchestrating its drone army — the Delta system pulls together battlefield data to identify targets, creating a miles-wide "kill zone" credited with helping to cut Russian advances to a near standstill. Bank Melli, Iran's largest lender, already faces sanctions that severely limit its ability to operate abroad, and Treasury Secretary Bessent says every foreign branch must be shut down as part of the U.S. call for economic war on Iran.
Politics & Society
Even as Trump's standing slips, he slinghotted Darline Graham to victory in South Carolina's Republican Senate primary, making a show of force despite low approval ratings and endorsement setbacks. A 15-year-old named Dean Roy will appear on the Vermont ballot in November as a third-party candidate for governor, saying his generation's concerns like affordability and climate change have been ignored for too long. The novelist Michael Connelly knows he is putting his reputation on the line with the podcast "Killer in the Code," arguing the Zodiac killed the Black Dahlia — despite critics' skepticism, he finds the evidence "completely convincing." A surrogate who refused an abortion and fled to Texas now wants custody of the baby, asking a judge to give her custody instead of the biological parents. Many families are engaged in tense debates after a new study found a high percentage of NFL players had developed degenerative brain disease, with one son telling his father "You're Ruining My Dreams."
Business & Industry
Dolly Parton's idea to create a "fantasy city" celebrating her home region turned into a billion-dollar attraction that maintained its authentic feel — Dollywood captured the essence of the star. Her vision to launch businesses that bring fans closer while protecting her intellectual property was ahead of its time, making Parton a trailblazer in business too. Operators are trying to make familiar an industry that seems consigned to another era, offering a rare look at life inside an American coal mine. Tim Curry, star of "Rocky Horror Picture Show," died at 80 — the actor's gift for garish eccentricity was indelibly appropriate for the outlandish, cross-dressing mad scientist Frank-N-Furter.