General Market News

US stocks opened mixed on Thursday as optimism over a potential Strait of Hormuz reopening deal supported the Dow, which rose 47 points, while the Nasdaq fell 0.42% due to weakness in chip and software stocks. Despite generally strong earnings and AI-driven demand, semiconductor companies including Western Digital (down 18%) and software firms like AppLovin (down 18%) tumbled on investor concerns about guidance positioning.

• Western Digital dropped over 18% despite beating revenue expectations, dragging down the semiconductor sector with Micron falling 5% and other chip stocks declining across the board
• Initial jobless claims came in at 199,000, below the 202,000 estimate, showing labor market resilience ahead of Friday's nonfarm payrolls report
• Markets remain divided on Federal Reserve policy with September rate expectations split nearly evenly between a hike and no change, while Iran-Oman negotiations on reopening the Strait of Hormuz (which handles significant global oil traffic) helped ease energy price concerns

US stock indices showed mixed performance in early Thursday trading after a strong 5-6 day rally, with rising Treasury yields adding pressure to markets. The Nasdaq 100 drifted lower while the Dow Jones remained flat and the S&P 500 struggled near recent highs, with technical analysts noting the market may be overextended.

• The Nasdaq 100 traded around 29,367.65, pulling back slightly after its multi-day surge, with rising US rates contributing to downward pressure
• The S&P 500 formed a 'shooting star' pattern at 7,742.48 after breaking to fresh highs, with technical analysts targeting 7,900 as the next resistance level
• All three indices showed signs of exhaustion after rapid gains, with analysts expecting either a pullback or sideways consolidation to work off excess momentum

U.S. weekly jobless claims rose slightly to 199,000 in early August, below the forecasted 202,000, while planned layoffs dropped 27% to 33,429 in July, reaching a two-year low. The stable labor market allows the Federal Reserve to focus on inflation concerns stemming from the Middle East conflict rather than employment weakness.

• Planned job cuts by U.S. employers fell to the lowest level since July 2024, down 46% year-over-year, with layoffs concentrated primarily in the technology sector due to AI-related restructuring
• Nonfarm payrolls are expected to increase by 80,000 jobs in July with unemployment holding steady at 4.2%, though job growth has slowed after accelerating in the spring
• The Federal Reserve held its benchmark rate at 3.50%-3.75% with three dissenting members preferring a quarter-point hike, as the stable labor market shifts focus to inflation from the six-month Middle East conflict

Tarsus Pharmaceuticals announced it will acquire privately held Alkeus Pharmaceuticals for up to $800 million to gain gildeuretinol, an experimental oral therapy for Stargardt disease, a rare inherited retinal disorder affecting over 36,000 Americans with no approved U.S. treatment. The deal includes $450 million upfront ($270 million cash, $180 million stock) plus up to $350 million in milestone payments.

• Gildeuretinol targets toxic vitamin A dimers that damage retinal cells in Stargardt disease patients, with initial late-stage trial data expected in second half of 2029
• Stargardt disease progressively damages central vision starting in childhood or adolescence, impairing reading, facial recognition, and driving abilities
• The transaction expands Tarsus' eye disease pipeline beyond its approved product Xdemvy for eyelid inflammation and is expected to close in 2026 subject to regulatory approval

US stock futures traded mixed on Thursday as the Dow gained 0.3% while Nasdaq 100 futures fell 0.5%, driven by weakness in AI-linked memory and storage stocks. Western Digital and SanDisk dropped sharply despite strong earnings, as investors rotated away from high-valuation tech toward industrial and defensive stocks. The divergence signals that AI-sector gains must now exceed elevated expectations embedded in current valuations.

• Western Digital reported 44% revenue growth to $3.75 billion and SanDisk's revenue surged to $8.97 billion, yet both stocks fell sharply as forward guidance failed to justify valuations after a 400% rally in 2026
• The semiconductor sell-off spread globally, with Samsung and SK Hynix falling in Seoul while Nvidia, Micron, and AMD declined over 1% pre-market, concentrated in AI infrastructure hardware stocks
• Oil prices, Federal Reserve policy uncertainty, and weak July private payrolls (only 44,000 jobs added) are adding macro headwinds ahead of Friday's critical nonfarm payrolls report

Gold prices climbed to a seven-week high of $4,295 per ounce on Wednesday, driven by weaker-than-expected July payrolls data and optimism over a potential deal to reopen the Strait of Hormuz. The rally marks gold's fourth consecutive winning session, though the precious metal remains over 20% below its January 2026 peak of $5,589 per ounce.

• Weak ADP jobs report reduces likelihood of a Fed interest rate hike in September, benefiting non-yielding gold as an investment
• Dollar index hovering near 6-week lows around 99.78 following U.S.-Japan intervention in the yen, with gold trading inversely to the greenback during the conflict
• Iran signals a deal with Oman to reopen the Strait of Hormuz is close, easing Middle East tensions and supporting risk assets including gold

The stock market experienced a significant AI-driven sell-off in July 2026, with semiconductor and AI-focused funds declining 17-27% as investors questioned massive capital expenditures by tech companies. Despite the downturn, the average U.S. stock fund remained up 10.3% year-to-date, while defensive sectors like energy (up 7.7%) and dividend stocks outperformed as investors rotated away from high-growth tech.

• Semiconductor ETFs led losses with Invesco Semiconductors falling 27.4% in July, though still up 73% year-to-date; AI-focused ETFs dropped 17-25% as concerns over ROI on AI infrastructure spending intensified
• Rising oil prices (up 21% in July) and geopolitical tensions pushed 10-year Treasury yields to 4.7%, the highest since January 2025, while the Breakwave Tanker Shipping fund surged 81% in the month
• Value stocks outperformed growth in July with large-cap value funds gaining 2.4% versus a 2.9% loss for growth funds; small-cap stocks led 2026 performance with Russell 2000 up 18.1% year-to-date

Hadrian, a manufacturing startup building advanced factories for defense and aerospace, raised funding at a nearly $8 billion valuation, more than quadruple its January valuation. The funding round was led by Baillie Gifford and J.P. Morgan Strategic Investment Group amid surging investor interest in defense tech driven by President Trump's military modernization plans.

• Hadrian's valuation jumped from under $2 billion in January to nearly $8 billion, reflecting massive investor enthusiasm for defense technology startups
• The company will use funds to scale its workforce and Opus software platform, which is already being used by the U.S. Army and Navy to address production challenges in submarines, munitions, and drones
• Hadrian joins a wave of major defense tech funding rounds, including Shield AI at $12.7 billion, Saronic at $9.25 billion, and Anduril topping $60 billion in valuation

U.S. stock futures showed mixed performance on Thursday, with S&P 500 and Dow futures steady while Nasdaq futures fell 0.76% as chip stocks declined despite strong forecasts. Investors focused on potential Middle East peace developments and upcoming economic data, while semiconductor and software stocks pulled back after earnings reports failed to meet elevated expectations.

• Western Digital dropped 15.5% and Sandisk fell 10.1% in premarket trading despite forecasting quarterly revenue above expectations, as results were deemed 'merely excellent' rather than showing re-acceleration for stocks up 200-400% this year
• Software stocks broadly declined following sector earnings, with AppLovin down 18.7% on revenue miss and Datadog losing 22.3% after quarterly results
• Fed rate uncertainty persists as September probabilities for no change versus a hike are now nearly even, compared to 37%/63% split last week, with weekly jobless claims and July payrolls data due this week

A major oil refinery in Russia's Yaroslavl region caught fire after a large-scale Ukrainian drone attack on August 6, with the regional governor reporting 93 drones were shot down. The facility, located 250 km northeast of Moscow, has a processing capacity of 300,000 barrels per day. Four people sustained shrapnel wounds but no fatalities were reported.

• Ukrainian President Zelenskiy confirmed strikes on two Russian refineries: the Slavneft-Yanos facility in Yaroslavl and the Bashneft-Novoil refinery in Bashkortostan
• The Yaroslavl refinery processes 15 million metric tons per year (approximately 300,000 barrels daily) and has been previously targeted by Ukraine
• Ukraine has intensified attacks on Russian oil infrastructure in recent months, causing fuel shortages that authorities have partially stabilized though problems persist in some areas

Ukraine's military conducted long-range drone strikes on Thursday targeting two major Russian oil refineries: the Bashneft-Novoil facility in Bashkortostan and the Slavneft-Yanos refinery in Yaroslavl region. The attacks, part of Kyiv's ongoing campaign against Russian energy infrastructure, aimed to reduce oil revenues that fund Russia's war effort.

• The Slavneft-Yanos refinery in Yaroslavl, located approximately 170 miles northeast of Moscow and hundreds of miles from Ukraine's border, is one of Russia's largest refineries, processing about 15 million tons of crude oil annually and employing over 3,500 people
• The Yaroslavl region faced its largest-ever drone attack with 93 drones destroyed by air defense systems; falling debris ignited fires at the refinery's storage tanks, resulting in four injuries but no casualties
• Ukraine has expanded its strategic targeting beyond energy infrastructure to include attacks on Russia's major retail operations like Wildberries, seeking to create additional economic pressure points

Nigeria's upstream oil regulator expects at least 22 offshore projects to begin production by 2030, attracting up to $50 billion in investment. The initiative aims to nearly double the country's oil production to 3 million barrels per day by 2030 as Africa's top oil producer seeks to boost output and attract new capital through reforms and licensing rounds.

• The NUPRC has cleared more than $57 billion in field development plans since 2024, enabling several projects to move toward final investment decisions
• Nigeria awarded 37 blocks to 31 companies in the 2025 licensing round as part of efforts to open new oil and gas acreage
• Reforms including licensing rounds, infrastructure upgrades, and improved security are being implemented to attract investment and improve the operating environment

China launched its broadest trade countermeasures since October's truce with the U.S., targeting firms that enforce American sanctions and tightening export controls on drones and dual-use technology. The actions come weeks before President Xi Jinping's expected visit to Washington in September, signaling Beijing's strategy to build leverage ahead of bilateral talks while testing the limits of the current détente.

• China sanctioned firms enforcing the Uyghur Forced Labor Prevention Act for the first time, including Arizona-based Compliance Testing, with significant implications for U.S. businesses operating in China
• Beijing implemented strict case-by-case export reviews for drones and related dual-use items to the U.S., while launching its first national security investigation targeting foreign software in imported office equipment
• Analysts view the measures as China replicating Washington's playbook by constraining Chinese technology flows to the U.S., with both sides building leverage for negotiations before the Trump-Xi summit

Britain's Hikma Pharmaceuticals reported a 9% increase in half-year core operating profit and maintained its annual outlook, driven by efforts to expand its product base and streamline manufacturing. The company is preparing for potential U.S. tariffs on generic drug imports, emphasizing that most of its U.S.-sold medicines are manufactured domestically in Ohio and New Jersey.

• Hikma had previously lowered medium-term targets in February due to challenges in one division and U.S. manufacturing delays
• The company positions itself favorably for U.S. supply chain strengthening efforts, with majority of U.S. medicines manufactured domestically in Ohio and New Jersey
• Middle East and North Africa markets account for about one-third of core revenue, making it the second-biggest market after North America

German defence supplier Renk Group AG reported record quarterly order intake of 612.8 million euros in Q2, pushing its total backlog to 7.4 billion euros ($8.55 billion). Despite the strong orders driven by Europe's rearmament efforts, the company maintained its full-year guidance as investors await conversion of orders into earnings and cash flow.

• Second quarter order intake of 612.8 million euros was the highest ever recorded in a single quarter for the company
• First-half order intake reached approximately 1.2 billion euros with a book-to-bill ratio of 1.9 times, indicating strong future revenue potential
• Renk manufactures transmissions for Leopard 2 and Puma armoured vehicles as well as naval propulsion systems, benefiting from increased European defence spending

Europe's natural gas storage has fallen to a record low of 58% capacity, 12 percentage points behind last year, due to tightened global LNG supply from the U.S.-Iran war that closed the Strait of Hormuz. This creates significant risk of price spikes during winter months, potentially driving gas prices from current €53/MWh to as high as €210/MWh in worst-case scenarios, threatening higher energy bills for households and industry.

• The closure of the Strait of Hormuz removed 20% of global LNG supply typically provided by Qatar, forcing Europe to compete with Asian buyers for limited LNG cargoes
• EU storage is 12 percentage points below last year at under 58% full, and analysts forecast only 67-76% peak levels versus the 80% December target, potentially requiring government intervention
• Market 'backwardation' eliminates financial incentive to store gas now, as near-term prices exceed winter prices, while Europe's shift from fixed-price Russian pipeline contracts to spot LNG increases vulnerability to price volatility

Sinopec, the world's largest refiner, has significantly increased purchases of Russian Far East oil to compensate for Middle East supplies disrupted by the Iran war. The Chinese state-owned company bought 30 to 40 Russian cargoes for July-September delivery, totaling approximately 241,000 to 320,000 barrels per day, while sharply cutting Saudi crude imports during the same period.

• Sinopec slashed Saudi oil imports from 20 million barrels in March/April to zero in June/July and just 2 million barrels in August, compared to an 11 million barrel monthly average before the Iran war
• Russian ESPO crude trades at $1-$2 per barrel discount to Brent, making it about $10 cheaper than rival grades from Brazil and the Middle East, helping Sinopec maintain stable refining throughput
• The purchases avoid sanctioned entities by using intermediaries and Chinese yuan payments, representing 5-6% of Sinopec's 5.2 million bpd processing capacity

Oil prices declined with WTI falling to $75 and Brent dropping to $83 as Iran-Oman diplomatic talks raised hopes for a U.S.-Iran peace agreement that could reopen the Strait of Hormuz. Rising U.S. crude inventories, which increased by 2.5 million barrels to 407 million barrels, added further downward pressure on prices despite ongoing geopolitical risks in the Middle East.

• WTI crude oil testing critical $74-$75 support level, with a break below potentially pushing prices toward $66, while Brent crude faces key support at $80-$81
• U.S. crude inventories rose by 2.5 million barrels to 407 million barrels, adding supply-side pressure to the market
• Peace talks could reopen Strait of Hormuz and reduce supply risk premium, though renewed attacks on Saudi tankers and potential Iranian retaliation maintain market uncertainty

JPMorgan CEO Jamie Dimon warned that leverage across financial markets is at elevated levels, with margin debt at record highs, including hidden borrowing through prime brokerages, hedge funds, and Treasury arbitrage strategies. He cautioned that high leverage increases the risk that a single investor or fund could trigger broader market volatility, though he stopped short of calling it a systemic threat.

• Margin debt is at its highest level ever, with additional leverage hidden in prime brokerages, hedge funds, ETFs, and Treasury basis trades that is 'not called margin debt'
• The recent collapse of AI-focused hedge fund Situational Awareness, which triggered margin calls and forced liquidation of its portfolio, demonstrated markets can absorb isolated failures without broader disruption
• Dimon distinguished current conditions from 2008, noting leverage alone doesn't cause systemic stress and warned that structural capital demands from deficits, infrastructure, and global rearmament could reignite inflation

Editas Medicine (EDIT) reported a Q2 2026 loss of $0.15 per share, beating analyst expectations by 50%, with revenues of $11.89 million surpassing consensus estimates by 524.80%. The genome editing company has now exceeded EPS estimates for four consecutive quarters and topped revenue estimates three times in the past four quarters.

• Q2 revenues of $11.89 million significantly outperformed the Zacks Consensus Estimate and represented a substantial increase from $3.58 million in the year-ago quarter
• The company maintains a Zacks Rank #3 (Hold) with mixed estimate revision trends ahead of the earnings release
• Full-year fiscal outlook projects a loss of $1.04 per share on revenues of $16.06 million, with Q3 consensus expecting a loss of $0.31 per share on $1.94 million in revenues