Last updated: August 31, 2026, 6:50 AM ET
Equities
US stock futures were mixed as traders weighed the outlook for interest rates following Federal Reserve Chairman Kevin Warsh’s hawkish inflation comments at Jackson Hole. The S&P 500 has recovered from the summer selloff and returned to setting records, but the Nasdaq 100 remains roughly 4% below its June peak, still tallying the cost of the season’s turbulence. The sudden unraveling of Wall Street’s momentum trade has turned the "self-fulfilling prophecy" of betting on rising winners into a losing gamefor investors who banked on its success, with the strategy down about 9% since July.
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Japanese equities fell sharply, with the Nikkei dropping 2.2%as chip stocks declined after Warsh’s speech increased prospects for US rate increases. Emerging-market equities and currencies also declinedas investors weighed the prospect of higher US interest rates. Chinese chipmaker Shenzhen Longsys Electronics Co. is seeking to raise as much as HK$6.28 billion ($801 million) in a Hong Kong listing, extending the wave of Chinese companies along the artificial intelligence supply chain tapping the city’s equity market. Indian listed companies are ramping up equity offerings to institutional investors, with the share sale pipeline swellingas ample liquidity and improving sentiment open a windowfor one of the fastest routes to raise funds. Shein Global Holdings Ltd. completed its initial public offering at a valuationthat’s a fraction of what the company was once worth, butthe $26 billion price tag still stirs unease over its growth outlook. Corporate America’s profits are booming,with tariff refunds and the resilient US consumer fueling the heftiest risein big-company earnings in years.
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Fixed Income & FX
The dollar eased against a basket of currencies,with Commerzbank saying any rise in the currency could be limited as a September rate hike is not a done deal. Theyen’s breach of 160 versusthe dollar underscoresthe Japanese currency’s vulnerability to further weaknessand the heightened riskof authorities enteringthe market again to slow its decline. The Australian dollar’s two-month rally may be nearing a peak,with some of its top forecasters warningthat bets on another central bank interest-rate hike have gone too far.Bond investorsat firms including ABN AMRO Investment Solutionsand Brandywine Global Investment Managementare voicing skepticismabout mounting speculationthat Warsh will raise rates,whilethe two-year Treasury yield pared recent gains. Japanese bond yieldshave climbed so sharplythat analysts saythe Government Pension Investment Fund may be justifiedin eventually raising its domestic debt allocation target from 25% to seek higher returns.The dollar’s global dominance keeps America first,andthe loss of its status asthe global reserve currency would hurtthe US economyand national security,according to a Wall Street Journal opinion piece. .
Commodities
Oil rose amid renewed fighting in the Middle Eastthat could lead to supply disruptions,with tensions spikingasthe USand Iran traded fireanda tanker reportedly hit minesin the Strait of Hormuz. Goldman Sachs stepped up warnings of tightnessin global refining driven by wars in the Middle Eastand between Moscowand Kyiv,more than doubling its forecastsfor profits from diesel production. China’s imports of liquefied natural gasare set to drop this month from a year earlier,according to ship-tracking data,as higher pricestriggered bythe war in the Middle East weighed on consumption. Crop prices are set to cap their biggest monthly jump in more than a decade as warsand extreme weather disrupt supplies,raising concerns about food inflation.Chinese coking coal prices were heading for the biggest monthly gain on record,as supply of the steelmaking raw material tightens on the back of output disruptionsand tougher safety checks. Gold declinedin Asian trade,withthe current pullback belowthe $4,600 level likely to be a natural correctionon profit-taking after a strong upward rally,according to XS.com. Gold steadiedafter falling more than3% on Fridayas Warsh’s pledge to fight inflation lifted betsthe US central bank will raise interest rates.Gold bulls rejuvenated bythe Treasury Department’s efforts to keep US borrowing costs in check are turning to exotic optionsand spreads to bet on higher bullion prices. Thailand plans to tighten oversight of the gold-trading industry,including online transactionsand physical bullion,asthe government seeks to curb money laundering,scamsand other financial crimes. .
Deals & M&A
Aon is nearing a roughly $17 billion deal for insurance brokerage USI,which private-equity giant KKR has owned since 2017..Japanese trading house Itochu Corp has decided to launch a tender offer to take Dentsu Soken Inc privatein a dealthat would end its parent-subsidiary listing structurewith Dentsu Group Inc,valued at about $1.3 billion..A key shareholder of India’s Megha Engineering & Infrastructures Ltd.is seeking to raise about $700 million from global private credit investors to buy out his uncle’s stake in the company,according to people familiar withthe matter. The scramble for gas assets has pushed dealmaking to a decade high,with spending on US projects soaringas national oil companiesand traders add to the rush. Ukraine’s former defence minister is pitching a tech fundto US investors,according to the Financial Times. Claridge’s operator Maybourne says it has"proactively pivoted" to other areas to counter a drop in Gulf bookings,betting on USand UK visitorsto offsetthe Middle East decline. .
Financials & Funds
Crypto groups have spent a record $640 millionbuying back their own tokens,employing a strategy similar to equity market repurchases in response to a prolonged slumpin the digital assets sector. Big Tech profits have received a $160 billion boost from gains on stakes in other AI companies,with analysts saying large paper windfalls on investments in OpenAI,Anthropicand SpaceX have muddiedthe tech sector’s earnings metrics..Jane Street’s AI bets have gone sour,withthe trading firm suffering losses on its artificial intelligence investments. UK investment trustsare struggling to keep upthe liquidity illusion,with Boaz Weinstein’s activist campaigns exposingthe strains in a centuries-old model.London’s Aim market faces an existential crisis,withthe junior market’s appeal rocked by depressed valuations,poor investor appetiteand inheritance tax changes.Banks and insurers are bracing forthe biggest German pension upheaval in 20 years,with reforms to the systemthat will funnel billions of eurosinto capital markets. Cinven’s private equity co-heads say a new focus on regulation will prevent a repeat of problems like NHS price-gouging,telling critics to"let’s move on"..
Economy & Policy
China’s factory activity improvedin August while staying in contraction,showing glimmers of a pickup forthe economy as policymakers eye new measures..The head of the G20’s Financial Stability Board wrote thatpotential disruptions triggered by AI wouldn’t stop at national borders,warningthat efforts to ensurethe safe release of new models should be a priority for global regulators.Andrew Bailey,head of the world’s financial stability watchdog,urged countries to take steps to controlthe release of new frontier models..German Finance Minister Lars Klingbeil plans to advocate for ending economically damaging conflicts,including tariff disputesandthe wars in Iranand Ukraine,during talks with Group of 20 peers.The Treasury barred specific reporters from The New York Times,The Wall Street Journaland Bloomberg from coveringthe G20 finance meeting next weekin Asheville,N.C,denying them credentials..President Donald Trump’s intensifying economic campaign against Iranis testingthe limits of the security grouping Xi Jinpingand Vladimir Putin have spent years expandingas a counterweightto US power..The administration’s new Iran sanctions move beyond chasing shell companiesand target banksthat help Tehran,putting China on notice..Trump saidthe US struck a deal for control of more than65 billion barrels of Venezuela’s oil reserves,witha US official saying it would involve a partnership witha private company..The evolution of a truly multi-polar currency market depends on governments’ willingness to embrace technologyand fortify markets,according to a Financial Times analysis of whether financial innovation will dethronethe dollar..A stellar year for emerging-market bonds is set to get even betterasthe return of the"dollar debasement trade" amplifies inflows into the asset class,fund managers say..The U.A.E. central bank promised an examination of Banque Misr’s branchesafterthe Treasury Department accusedthe Egyptian bank of helping Iran.. Asia
China’s three largest state-owned airlines posted deeper losses,dragged by weak domestic pricingand high fuel costs spurred bythe Middle East conflict,with combined first-half losses exceeding $1 billion..The shares of Sungrow Power Supply Co.,one of the world’s biggest renewable energy equipment makers,tumbledafterthe Chinese company reported a sharp dropin first-half profit.A leading executive at Radiant World’s China office has quit,according to sources familiar withthe matter,asthe iron ore trader comes under pressure over concerns it provided falsified documents..Taiwan’s powerful financial regulator,Peng Jin-lung,is taking aim at a decades-old investment model used bythe island’s life insurance firms,seeking to wean them off US dollar dependence..UK fintech Allicais looking to Sweden to kick-start its European expansion,withthe neobank hoping to challenge Scandinavian incumbentsthat have curbed riskier lending. India’s contentious new closing auction system is about to face its biggest challenge yet as billions of dollars in passive-fund trades flow through it duringthe MSCI rebalancing,withthe concern being whetherthe system can absorb that kind of volume without sharp price swings. .
Companies
Tim Cook hands over to John Ternus on Tuesday after 15 years as Apple CEO,with his legacy measured bythe numbers.Victoria Beckham’s beautyand fashion businesses have turned a profit forthe first time,with two new CEOs markingthe brand’s turnaround after years of losses..Heckler & Koch,the German gunmakerwitha loaded history,is setting its sights on the British army’s next rifle,facing competitionfrom global defence companiesto replace the SA80 service rifle..SoftBank’s SB Energy offered a $5.5 billion perk to land OpenAI,withthe agreement deepening its financial tieswiththe artificial-intelligence companyin an effort to build out projects. Meta’s $18 billion settlement over addictive features harming children is a starting point,withgovernments able to use it as leverage as they mull social media bansfor minors.The world’s drinks orderis in,anddistillers were expecting more,facing a global aged-spirits glutthat’s the corporate equivalent of ordering too much alcoholfor a party where half the guests turn out to be dry — except with billions of dollars at stake..Steak ’n Shake is betting that beef tallowand grass-fed beef will draw dinersand lift sales,withthe Midwestern burger chain going full MAGA..Car sunroofs keep"spontaneously" exploding,andthe problem is getting worse,withheat,debrisand manufacturing defects all able to lead to a vehicle owner experiencing a sudden glass shattering.High-end credit cardholdersare finding it harder to get their money’s worth,withrising annual fees intensifyingthe cat-and-mouse game over rewards between card companiesand customers..
Shipping & Infrastructure
Long-term investors are turning to shippingasthe Middle East conflict boosts returns,withasset managers reporting interest from institutional investors seeking exposure to hard assets.Wall Streetand Silicon Valley have high hopes for AIthat interacts withthe real world,butunionsand economists warn of its effects on jobsand wages as they ask whether robots can save US manufacturing.Americans increasingly blame large corporations forthe sense that they have ever less control over their own lives,feeling they have lost their agency.. Geopolitics & Disasters
A massive landslideand glacial collapse may have caused catastrophic floodingin Nepal and Tibet even without heavy rainfall,with more than4,700 people remaining missing on Monday. Nepal has turned to mass burials,asonly a fraction of the over2,500 missing are turning up among the dead,underscoring a bleak realitythatthe death toll is likely to keep risingfor days to come. Some survivors of the deadly floodand landslide have no access to food,withofficialsand volunteers testing how drones can helpdeliver aid. At least one person diedand 15 others may be missing or unaccounted for after a flash floodin the Grand Canyon,withat least62 people evacuatedon Saturday after flooding destroyed footbridgesand damageda campgroundand cabins near Bright Angel Creekin Arizona,the National Park Service said.A ferry carrying hundreds of passengers capsized off the coast of Cyprus,withlocal authorities saying267 people were aboardthe catamaran-type vessel when it began taking on water shortly after its departure from Kyrenia.. Politics & Society
The Kremlin is redefining what it means to be a writer in Russia,with Putin coming for Russian literaturein a new crackdown. Sílvia Orriolsistransforming Catalan nationalism,withher movementthat used to fight fascism now fighting globalism..Senator Ed Markey of Massachusettshas emerged as a vocal defender of transgender rights as he tries to fend off a primary challengefrom Representative Seth Moulton,defending transgender athletesin the Senate race.The closure of a crucial Rhode Island bridgefor safety reasonsin 2023,andthe traffic nightmarethat followed,have dogged Gov. Dan McKeein the Democratic primary,witha bridge possibly to blamefor his struggles. For years,conservative litigants flockedto Judge Reed O’Connor’s districtin Texas,andnow North Texas has become a favorite destinationof the Justice Department,showing how Trump’s policy agenda runs through one federal court..A judge temporarily blockedthe Postal Service from implementing a strict new rule governing mail voting,a policythat could disproportionately affect Democratsand many battleground electionsand could bar millions from voting by mail..Ten deportees said they experienced or witnessed what they called abusive or violent treatment by ICE,recounting harrowing detailsof US expulsionand spending months in detention before being sent to nations where they had no ties.The country’s longest war came to an end exactly five years ago,andtoday it offers lessons for policymakers seeking to avoid an endless war in Iran,asthe US struggles to quit its wars.. Energy & Geopolitics
The US has turned to Alejandro Betancourt,a wilyand divisive insider,to help it develop Venezuela’s oil reserves,withthe controversial Venezuelan executive now courting investorsafterthe Trump oil deal. Trump announced a US oil dealwith Venezuela that recalls the famous Cuba scenein"The Godfather Part II,"according to a Wall Street Journal opinion piece.The Iranian government is struggling to meet a shortfallin fuel,with long lines for gasshowing how warandthe US blockadeare squeezing supply,andofficials warythat higher prices at the pump could stir unrest. .
Culture & Lifestyle
Dolly Parton met Carl Dean outsidea Nashville laundromatin 1964,andfor decades she was as protective of her marriage as he was fiercely private,withtheir 60-year marriage fueled by distanceand difference..For many Americans,Parton represented an idealized style of faith centeredin small rural congregationsthat prize community over ideology,as seen in her connection tothe "pretty darn good" Southern church.What Dolly did for Tennesseeis what she did forthe world,from her Imagination Library touching millions to her contributions to medicineand beyond.Asthe US Open kicks off,tennis’s one-handed backhand has quietly gone extinct,withthe lost shotexploredin a new feature.The players,the rivalriesandthe dramas to follow at this year’s tournamentare previewed as observers ask who will rulethe 2026 US Open..A 1970s improv book has become Silicon Valley’s required reading,withits insightthat it can be useful to see realityas malleable..Marlon James’s story of gay experienceand murderous homophobiain Jamaicaisa maximalist’s banquet,with"The Disappearers"beingthe Booker Prize winner’s finest book yet.With"The Disappearears,"James has written his most personal novel yet,confronting"the story I was not allowed to live".Josh Shapiro announced two measles deathsin Pennsylvania,andthings went downhill fast,showing how not to announce a measles death..NASA’s Nancy Grace Roman Telescope left Earth to chartthe stars,withastronomers set to use data collected by its wide,deep gaze to studythe dark universeand hunt for new worlds..Like any life,mine has had its pain,yetfrom the outset it seems to have been graced by unbelievable peopleand events,withthe world describedas a roomwitha piano waiting to be played..The college enrollment crisis is coming for bigger schools,withthe 21-year-old Filipino tennis sensation making historyandthe"Roth IRAon steroids"attracting wealthy investorsalso featured inthe latest Wall Street Journal newsletter.