General Market News

U.S. Treasury Secretary Scott Bessent announced that the United States and Iran are in negotiations and may reach an agreement by Tuesday or Wednesday to reopen the Strait of Hormuz with freedom of movement for commercial ships. The potential deal would move toward normalizing the situation in an ongoing conflict that has affected this critical maritime passage.

• Bessent confirmed active talks between the U.S. and Iran regarding reopening the strait
• The deal would establish 'freedom of movement' for commercial shipping through the strategically important waterway
• Agreement could be reached within a one to two-day timeframe, representing a significant de-escalation in regional tensions

Attovia Therapeutics, a biopharmaceutical company backed by Goldman Sachs, has upsized its U.S. IPO to raise $289 million at a $731.5 million valuation. The California-based company, founded in 2023, develops biologic therapies for immune-mediated diseases and plans to list on Nasdaq under the ticker 'ATTO.'

• The IPO was increased from 12.5 million shares raising $212.5 million to 17 million shares raising $289 million, indicating strong investor demand for biopharma listings
• Goldman Sachs affiliate will hold approximately 5.7% stake in the company post-IPO
• Proceeds will fund development of lead drug candidates targeting inflammatory skin conditions and inflammatory bowel disease using the company's ATTOBODY platform

US stock futures rose Tuesday morning, led by a 342-point surge in Dow futures, as Palantir's strong AI-driven earnings lifted sentiment across tech and semiconductor stocks. Nasdaq 100 contracts gained 0.76% and S&P 500 futures added 0.19% before the bell. The rally faces near-term tests from upcoming labor data, AMD earnings, and geopolitical uncertainty around Iran.

• Palantir's Q2 revenue jumped 93% year-over-year to $1.94 billion, with US commercial sales up 149% to $764 million, driving the stock up 17.2% premarket and lifting chip stocks including ON Semiconductor (+7.5%), Micron (+2.3%), and Marvell (+4.4%).
• June JOLTS report due at 10am ET is expected to show job openings easing to 7.4 million from 7.6 million, with markets pricing a 63.4% chance of a quarter-point rate hike next month depending on labor market strength.
• AMD reports earnings after close with expectations of roughly 46% year-over-year revenue growth to about $11.2 billion, while SpaceX will deliver its first public earnings report, testing whether Starlink can finance capital-intensive expansion projects.

Global hedge funds lost nearly 3% in July 2026, reducing year-to-date gains to around 8%, primarily due to unwinding of crowded technology trades amid geopolitical tensions and a tech selloff. The losses stemmed from a spike in crude oil prices related to the Iran war, which triggered a chip stock selloff and a broader Asian market rout, with U.S. tech stocks falling over 7%.

• Asia-Pacific stock pickers suffered the most with negative 9.4% returns in July, while multi-strategy funds lost 2.2% and quantitative equity funds dropped 5%
• JPMorgan identified quantitative hedge funds as the most leveraged strategy at 450%, with overall hedge fund leverage remaining near five-year highs despite being below the 12-month peak
• July 'de-grossing' (dumping unprofitable trades) was the most pronounced since 2020 and 2022, continuing a pattern of hedge funds selling U.S. stocks in July and re-buying in September since 2018

U.S. markets stabilized on Tuesday as corporate earnings season continues with strong results, while attention turns to SpaceX's highly anticipated earnings report. The company faces investor scrutiny over whether Starlink profits can justify its $86 billion IPO valuation of 77 times forecast revenue. Meanwhile, U.S. manufacturing showed robust growth, oil prices steadied after Monday's 7% drop, and the yen remained calm following Tokyo-Washington intervention.

• Palantir surged over 10% in extended trading on strong government contracts, while U.S. manufacturing growth hit its fastest pace despite high input prices
• SpaceX stock has pulled back sharply since its June IPO, with today's earnings providing the first test of whether Starlink profits can sustain the company's growing AI and space capex
• Oil stabilized after Monday's 7% decline amid confusion over potential U.S.-Iran talks, while traffic through Gulf shipping chokepoints Hormuz and Bab el-Mandeb remains minimal

The Trump administration is drafting a ban on U.S. imports of new Chinese data center components, specifically optical transceivers used in fiber-optic connections. The FCC is working on the measure, which officials hope to publish this year, aiming to prevent Chinese firms from stealing data, installing malware, or disrupting service at U.S. data centers that support AI infrastructure. The restriction could still be modified or shelved, and China has warned it will respond to measures harming its interests.

• The ban would likely impact China's Zhongji Innolight, which holds a 27% market share and was added to the Pentagon's list of alleged Chinese military-backed companies in June
• U.S. cloud providers like Amazon Web Services may face higher costs as they transition to alternative suppliers such as Coherent and Lumentum, which stand to benefit from the measure
• The move follows Trump administration efforts to avoid a Huawei-like situation where Chinese equipment becomes deeply embedded in critical U.S. infrastructure, making removal slow and expensive

Russia's seaborne oil product exports plunged 33% month-over-month in July to approximately 3.9 million metric tons, driven by reduced refinery output following Ukrainian attacks and temporary government export restrictions aimed at securing domestic fuel supplies amid local shortages and rising wholesale prices.

• Diesel and gasoil exports fell sharply by 60% to 0.75 million tons, while naphtha shipments dropped 35% to 0.8 million tons as domestic demand increased
• Russia implemented a temporary export ban in July, extended through August, though it allows shipments under existing contracts and intergovernmental agreements
• Reduced Russian exports could tighten fuel supplies in key markets including Asia, the Middle East, Turkey, and Brazil, which became primary buyers after the EU banned Russian oil product imports in February 2023

Japanese Prime Minister Sanae Takaichi is pushing to cut the consumption tax on food from 8% to 1% for two years starting April 2027, eliminating an estimated 4.4 trillion yen in annual revenue. This fiscal gamble comes as Japan's borrowing costs rise and the country maintains one of the world's highest debt levels at 204% of GDP, drawing criticism from within her own party and the IMF.

• Takaichi is betting that her broader 370 trillion yen public-private investment drive can boost productivity, growth and tax revenue before higher interest costs hit the budget, with 90% of financing expected from the private sector
• Japan's debt-servicing costs are projected to surge from 13 trillion yen in fiscal 2026 to 21.6 trillion yen by fiscal 2029 under a 3% nominal-growth scenario, already accounting for about a quarter of the budget
• Japan's 10-year government bond yields are around 2.85%, near multi-decade highs, driven by the inflationary nature of Takaichi's programs and concerns the BOJ is behind the curve on inflation

U.S. Treasury yields remained broadly flat on Tuesday as investors assessed uncertainty surrounding Middle East peace negotiations between the U.S. and Iran. The 10-year Treasury yield held steady at 4.686%, while the 30-year yield hovered near its highest level since 2007 at 5.232%, following last week's hawkish Federal Reserve hold.

• The 10-year Treasury yield was unchanged at 4.686%, while 2-year and 30-year yields remained flat at 4.250% and 5.232% respectively
• Conflicting reports on U.S.-Iran peace talks created market uncertainty, with President warning negotiations are the 'last chance' to end the five-month conflict while Tehran denies direct talks are occurring
• The 30-year Treasury yield is trading just below its highest level since 2007, reflecting investor reaction to the Federal Reserve's hawkish stance from the previous week

The U.S. reportedly sold euros instead of dollars to fund its intervention supporting the Japanese yen, likely to avoid destabilizing sensitive Treasury markets. This unconventional approach strengthened the euro to a nearly two-month high of 1.1558 against the dollar. Major corporations including Amazon, HSBC, and Saudi Aramco reported strong earnings, with Amazon surpassing $3 trillion in market capitalization.

• The U.S. sold euros rather than dollars for yen intervention to prevent Japan from dumping large quantities of Treasurys, which could destabilize bond markets
• Amazon crossed $3 trillion market cap after strong earnings, benefiting from AI investment gains in OpenAI and Anthropic alongside tech peers
• HSBC reported 60% year-over-year profit growth with $10.1 billion in pre-tax profit, while Saudi Aramco beat expectations amid elevated oil prices from Middle East tensions

President Trump has warned that ongoing negotiations with Iran represent a 'last chance' to end a five-month conflict, though Tehran denies any direct talks are occurring. Oil prices rose on Tuesday after slumping Monday, as traders questioned whether a diplomatic solution is achievable. The conflicting statements from Washington and Tehran have created market uncertainty amid a U.S. blockade of the Strait of Hormuz.

• Trump claims talks are 'going on right now' at the request of Iran and regional partners, while Iran's foreign ministry insists there are no immediate plans for U.S. negotiations
• Oil prices rebounded with WTI crude up 1.29% to $81.38 per barrel and Brent up 1.73% to $85.23 after initially falling when Trump called off 'massive attacks' on Iran
• U.S. Central Command has redirected 44 commercial vessels as part of its Strait of Hormuz blockade, having disabled two and boarded two ships

British medical products company Smith+Nephew reduced its full-year revenue growth forecast on Tuesday due to ongoing weakness in its orthopaedics division in the United States, which is the company's largest market. The downward revision reflects continued challenges in a key business segment.

• The company's orthopaedics unit is experiencing persistent weakness in the U.S. market
• The United States represents Smith+Nephew's largest market, making the underperformance particularly significant
• The revenue forecast cut suggests broader challenges in the medical devices sector's recovery

Saudi Aramco reported second-quarter adjusted net income of $33.4 billion, surpassing analyst expectations of $31.59 billion. The profit surge came during a period of severe disruption through the Strait of Hormuz amid escalating Middle East conflict involving Iran, which squeezed oil supplies and boosted prices.

• Adjusted net income reached 125.2 billion Saudi riyal ($33.4 billion) for April-June period, beating forecasts by approximately $1.8 billion
• Profits benefited from oil supply disruptions through the Strait of Hormuz caused by the Iran conflict
• The strong earnings come as geopolitical tensions in the Middle East continue to impact global oil markets and pricing

Oil prices rebounded on Tuesday with WTI rising to $88.40 and Brent to $81 after a sharp drop, driven by ongoing uncertainty over US-Iran negotiations and supply disruption risks in the Strait of Hormuz. President Trump halted attacks on Iran and indicated talks are underway, but Iran's skepticism about ceasefire discussions has kept markets volatile and maintained geopolitical risk premiums.

• WTI needs to break above $90 to target $100; failure to hold $77.50 support could push prices toward $65
• Brent maintains positive outlook above $85 support level, with a break above $90 needed to reach $100
• Shipping disruptions near the Strait of Hormuz continue to add costs through longer routes, higher fuel consumption, and increased insurance expenses, keeping supply concerns elevated

The U.S. joined Japan in a rare foreign exchange intervention to support the yen after it fell to 40-year lows near 164 per dollar. Treasury Secretary Scott Bessent wants the Federal Reserve to expand its FIMA Repo Facility so Japan can raise dollars without selling Treasuries outright, which could push U.S. borrowing costs higher. This request tests new Fed Chairman Kevin Warsh's effort to redefine Treasury-Fed cooperation.

• The yen weakened to its lowest level since 1986 before the intervention, driven by interest rate differentials, Japan's debt levels, and energy imports; it recovered 3.5% to just under 157 after coordinated action
• Bessent wants to 'upsize' the FIMA facility beyond its current $60 billion daily limit to accommodate Japan's approximately $1.1 trillion in Treasury holdings and recent intervention estimated at $60-80 billion
• Any FIMA expansion requires Federal Open Market Committee approval, with Warsh previously stating the Fed should defer to Treasury on 'matters affecting international finance' as part of rewriting the Treasury-Fed Accord

Singapore-based Grab raised its 2026 annual revenue forecast on August 4, citing stronger demand for ride-hailing and delivery services driven by promotional offers and platform expansion. The Southeast Asian market leader now expects revenue between $4.10 billion and $4.15 billion, up from its previous range of $4.04 billion to $4.10 billion.

• New revenue guidance of $4.10-$4.15 billion represents an increase from the prior forecast of $4.04-$4.10 billion
• Growth is attributed to promotional offers and platform expansion efforts across Grab's ride-hailing and delivery operations
• Analyst consensus expects annual revenue of $4.12 billion, which falls within Grab's updated forecast range

A group of Aston Martin creditors owed £1.3 billion has threatened legal action against the automaker over plans to sell 50.1% of its non-automotive branding and naming rights to U.S. brand developer Authentic Brands as part of a £550 million debt financing deal led by BlackRock-owned HPS Investment Partners. The creditors sent a 'letter before action' warning they could seek to unwind the HPS transaction and block the intellectual property asset disposal.

• The July financing package includes a £450 million secured term loan, £100 million delayed draw loan, and £100 million debt incurrence capacity, with the additional £100 million conditional on completing the branding-rights sale to Authentic Brands
• Existing creditors claim they were not properly informed about the intellectual property transfer, which would give Authentic Brands a 50.1% stake in Aston Martin's non-automotive IP assets
• The 113-year-old luxury carmaker faces ongoing cash pressures from weak sales, U.S. tariffs, and soft China demand, driving its pursuit of cost cuts and fresh funding

Williams is acquiring Momentum Midstream for $5.5 billion to expand its natural gas network in the Haynesville shale region. The deal, comprising $3.5 billion in cash and debt plus $2 billion in equity, positions Williams to serve growing Gulf Coast LNG export and power demand. The company also raised its 2026 adjusted EBITDA forecast to $8.3-8.5 billion.

• The acquisition adds over 4,000 miles of pipeline and 1 million dedicated acres with 6 billion cubic feet per day gathering capacity and three take-or-pay pipelines moving 4.05 billion cfd
• Williams raised its 2026 adjusted EBITDA outlook to $8.3-8.5 billion from a prior midpoint of $8.2 billion
• Second-quarter adjusted EBITDA rose to $1.921 billion from $1.808 billion year-over-year, while net income increased to $827 million or $0.68 per share

Venezuela's oil exports fell slightly to 1.16 million barrels per day in July from 1.2 million bpd in June, marking the second consecutive monthly decline. However, shipments to the United States surged to 786,000 bpd, the highest level since early 2019, following a key oil supply pact signed in January between Washington and Venezuela's interim government that lifted Trump-era sanctions and naval blockade.

• U.S. shipments jumped dramatically to 786,000 bpd in July from just 284,000 bpd in January, representing the bulk of Venezuela's total exports
• Exports to India fell to 178,000 bpd from 277,000 bpd, while Europe declined to 82,200 bpd from 99,000 bpd in the previous month
• Trading firms including Vitol, Trafigura and Novum Energy shipped 604,000 bpd in July, down from 775,000 bpd in June, while Chevron maintained steady exports at 293,000 bpd

The Dow Jones surged 693 points to a record high on Monday as Wall Street began August with a broad rally driven by major technology stocks and falling oil prices. The S&P 500 gained 1.5% and the Nasdaq rose 2.1%, marking a reversal from July's tech weakness as strong earnings restored confidence in AI infrastructure investments.

• Amazon's market cap crossed $3 trillion for the first time following strong earnings showing AWS growth acceleration, while Meta gained nearly 6% and Alphabet and Microsoft each rose around 5%
• Oil prices fell sharply—Brent crude down 5% to $83.46 and WTI down over 7% to $78.59—after President Trump called off military strikes against Iran, easing Middle East tensions and inflation concerns
• S&P 500 companies reported 29.3% year-over-year profit growth with 85.2% beating expectations, while markets now price in a 66.5% probability of a Fed rate increase in September ahead of Friday's jobs data