Public Markets 8 Hours

Last updated: August 7, 2026, 5:53 PM ET

Equities

The S&P 500 and Nasdaq capped their best week since April after a surprise July payrolls contraction sent rate-hike fears receding. A far weaker-than-expected jobs report gave the Federal Reserve reason to hold off on raising rates next month, lifting all three major indexes. U.S. stocks rose Friday as traders scaled back their rate-hike expectations, with the S&P 500 closing at a fresh record. Markets rallied on the surprise job losses, while manufacturing jobs remained a bright spot and Airbnb shares soared.

SpaceX shares jumped for a second straight day, bringing them close to breaking back above the company’s $135 initial public offering price for the first time since falling below that level last month. The rally follows a $327 billion surge in valuation. Meanwhile, private-equity firms are pouncing on the hot IPO market, with more firms taking companies public as sluggish dealmaking has made it hard to find buyers. Whatnot, a fast-growing live-shopping platform, nearly doubled its valuation to $20 billion in less than a year after new funding.

Wall Street’s risk complex surged anew amid a deluge of fresh cash, with markets increasingly indifferent to a growing catalog of complaints. DraftKings CEO Jason Robins said he doesn’t think it is good that bettors place prediction-market wagers on what executives say on earnings calls. The CFTC warned prediction markets to avoid using American-style gambling odds as the regulator fends off legal challenges.

BlackRock’s Rick Rieder said last month’s surprise contraction in payrolls reflects a “productivity revolution” rather than economic weakness, arguing the US economy remains on track for 6% GDP growth. Under Armour lowered its revenue outlook on soft demand, with traffic trends weakening through the latest quarter, especially in North America and Asia-Pacific. Wendy’s withdrew its outlook and slashed its dividend as its turnaround struggles to gain traction.

Fixed Income

Treasury yields fell after the weaker-than-expected jobs report showed the economy lost 23,000 jobs in July, pushing the 10-year yield down sharply. The US Treasury triggered debate about whether government auction cutbacks can help temper yields, challenging an article of faith about the world’s biggest bond market. Hedge funds sharply reduced bearish bets on the yen after coordinated US-Japan efforts stabilized the currency.

San Juan, Puerto Rico, triggered a rush for its $121 million muni-bond sale this week as investors seized a rare opportunity to get exposure to the island. Pyramid Management is buying back the mortgage on a struggling Syracuse megamall for cents on the dollar, mostly wiping out bonds originally rated AAA that now face a $350 million loss. Gainwell Technologies kicked off a $5.8 billion debt overhaul, the US software sector’s biggest refinancing of 2026.

Commodities

Oil futures rose 1.2% Friday with WTI settling at $78.18 a barrel, but finished down 7.7% for the week as Brent fell 5% to $83.55. U.S. natural gas futures posted their seventh consecutive weekly loss as strong production and soft LNG feedgas offset high seasonal power-sector demand. Ukraine’s agricultural shipments could fall by more than half this season after Russian attacks disrupted Black Sea ports, threatening the country’s biggest source of export revenue.

US President Donald Trump’s trade war with China created a “tortuous experience” that disrupted the flow of soybeans between the world’s two largest economies, a Chinese diplomat said. Hungary is facing a “dramatic” economic impact from drought across its agricultural heartland combined with a lengthy nuclear production outage, Prime Minister Peter Magyar warned. Fitch Ratings is skeptical that Chile’s tax cuts will boost growth enough to offset the immediate drop in revenue, leaving emphasis on fiscal spending reductions.

Currencies & Macro

The dollar fell to its lowest since May after soft US labor data reduced expectations that the Federal Reserve will raise rates in the near term. A weak jobs report does not eliminate the prospect of a rate rise, as officials remain focused on inflation after five years of overshooting the 2% target. The labor market shifted into reverse as a spring surge rapidly faded when summer brought higher prices and more uncertainty for businesses, even as layoffs were avoided.

The worst trading outage ever in Brazilian financial markets hit investors in Latin America’s biggest economy, putting B3’s near-monopoly in focus. The US Senate confirmed Christopher Phelan, a former Minneapolis Fed adviser, as chairman of the White House Council of Economic Advisers. Trump administration officials restarted a battle to fire Federal Reserve Governor Lisa Cook, sending a letter saying they were “considering” removing her from the job.

Regulation & Policy

The Senate passed a sanctions bill targeting Russia and Iran, championed by the late Senator Lindsey Graham. Wyoming Sen. Cynthia Lummis defends the Clarity Act for crypto, arguing that passing the bill on digital assets is a matter of national security. If the US does not set terms, crypto activity will migrate beyond American laws to lightly regulated foreign venues.

Todd Blanche’s confirmation as attorney general was salvaged when Sen. Bill Cassidy said he would back President Trump’s pick, giving Republicans enough votes for a majority. The FAA ordered inspections of 471 Boeing 737 MAX jets after cracks were found in a structural reinforcement around one of the plane’s doors. Ford plans a four-door version of the Mustang, a first for the automaker’s “pony car” that could broaden its consumer appeal.

Other Market Headlines

A Singapore billionaire sued Brookfield for allegedly aborting a planned real-estate joint venture, claiming the asset manager usurped a property deal. The Army opened test ranges to private industry to help break a munitions bottleneck, allowing companies to prove weapons work in battlefield conditions. Taming AI’s wild frontier is urgent as the most advanced systems evolve faster than safety efforts. The era of free money AI bond buildouts is ending as hyperscaler debt funding gets pricier.