Global Markets Under Pressure as US Yields Surge, Iran Tensions Mount
21 August 2026 · Evening
US 30-year Treasury yields soared to their highest level since 2007, as the calming effect of Treasury Secretary Bessent's bond buyback plan proved short-lived.
Geopolitical risks intensified with Iran vowing "devastating retaliation" against impending "toughest ever" US sanctions, keeping international oil prices near a four-week high.
China's property sector continued its deleveraging, marked by a 30.8% drop in state land sales and an Evergrande subsidiary entering bankruptcy liquidation.
Meanwhile, Japan's core CPI climbed to 1.8% in July, nearing the BOJ's 2% target and increasing pressure for a potential rate hike in September.
Asian markets showed mixed signals today as China's government land sales revenue plummeted, highlighting ongoing property sector challenges.
Global Markets
Detail
S&P 500
Closed at 7,641.16 on August 20.
-0.87%
Nasdaq
Closed at 26,067.17 on August 20.
-1.00%
STOXX 600
Traded at 651.19 as of 19:40 KST on August 21.
+0.13%
Nikkei 225
Closed at 66,016.14 on August 21.
-0.30%
CSI 300
Closed at 4,618.90 on August 21.
+0.57%
KOSPI
Closed at 6,912.95 on August 21.
+0.88%
Hang Seng
Closed at 26,009.46 on August 21.
+1.21%
Dollar Index (DXY)
Closed at 98.60 on August 21.
-0.24%
USD/JPY
Closed at 158.58 on August 21.
-0.29%
EUR/USD
Closed at 1.17 on August 21.
+0.26%
USD/KRW
Closed at 1,383.92 on August 21.
-0.71%
USD/CNY
Closed at 6.72 on August 21.
-0.03%
US 10-year Yield
Closed at 4.708% on August 20.
+6.7bp
US 2-year Yield
Closed at 4.190% on August 20.
+2.8bp
Japan 10-year Yield
Closed at 2.876% on August 21.
+1.3bp
Germany 10-year Yield
Traded at 3.254% as of 19:40 KST on August 21.
-0.1bp
Korea 10-year Yield
Closed at 4.414% on August 21.
+8.0bp
US HY Spread
Closed at 273bp on August 19.
-2.0bp
WTI Crude
Closed at 86.67 on August 21.
-0.18%
Gold
Closed at 4,592.66 on August 21.
+1.64%
Copper
Closed at 6.59 on August 21.
+1.83%
VIX
Closed at 16.02 on August 20.
+7.66%
Hormuz Strait Traffic Plummets
Only 7 ships passed through the Strait yesterday, a 50% decrease from the previous day.
-50%
Global Equities Face Worst Weekly Drop Since Mid-July
Global equity funds saw $220.1 billion in net inflows last week, a three-week high, before a broad market sell-off this week.
Weekly Low
US National Debt Surpasses $40 Trillion
For the first time, the US national debt has exceeded $40 trillion, contributing to rising borrowing costs for G7 nations.
Record High
Australian Dollar Continues Ascent
The AUD/USD gained +0.4% today, breaking through the 0.7130-35 resistance level.
+0.4%
New Zealand Dollar Breaks Resistance
The NZD/USD adjusted -0.3% from yesterday's high of 0.5964 but then broke through the 0.5925-30 resistance.
Upward Trend
United States
Bessent Treasury Buyback Credibility FadesYields Up
Treasury Secretary Bessent's announced expansion of long-term bond buybacks, intended to calm markets, lost its effect within a day.
The 30-year Treasury yield surged back to 5.25% today, nearly erasing the intervention's impact.
Bessent's suggestion of increasing buyback amounts to over $4 billion per issue was dismissed by the market as "political theater" amid the US national debt exceeding $40 trillion.
Dollar Index Weekly Decline AcceleratesDXY -0.24%
The dollar index saw an accelerated weekly decline as the Treasury's bond buyback policy was perceived as a temporary fix, weakening conviction in dollar-bearish bets.
This reduced pressure to unwind positions, contributing to the euro's fourth consecutive weekly gain to $1.1694.
Currencies of energy exporters like the Mexican Peso (MXN), Norwegian Krone (NOK), and Canadian Dollar (CAD) are gaining attention due to high oil prices and the Treasury's long-term yield suppression efforts.
Former President Trump threatened an "economic war" against Iran, with Treasury Secretary Bessent promising "the toughest sanctions in history" to be detailed on Monday.
Iran warned of a "devastating response," while the US sought China's cooperation, which China rejected, stating sanctions are unhelpful.
Oil prices surged to a four-week high, contributing to broader risk-off sentiment in global markets due to inflation and rising bond yield pressures.
US Consumers Tighten Budgets Amid Spending DivergenceBudget Cuts
Walmart (WMT) lowered prices on 11,000 items over three months, yet average customer spending per basket weakened, signaling consumer budget constraints.
US retail sales recorded their first decline in nine months in July, though Home Depot (HD) noted robust demand from budget-conscious consumers.
Luxury and premium brands like Ralph Lauren (RL) outperformed, highlighting a widening polarization in spending between middle and high-income households.
Fed September Rate Hike Remains a PossibilityHawkish Fed
The latest FOMC meeting minutes revealed a hawkish shift, with three monetary policy committee members expressing a hawkish stance.
Despite moderate inflation and employment data, the possibility of a September rate hike remains, reflecting the Fed's cautious approach.
Incoming Fed Chair Warsh is scheduled to deliver his first official speech at the Jackson Hole Economic Symposium on August 28, potentially offering crucial guidance on future rate policy.
Asian Emerging Markets Equities Head for Weekly SlideEM Sell-off
Asian emerging market equities, including South Korea's KOSPI and Taiwan's index, are poised for a weekly decline.
This sell-off is driven by the dual pressure of rising US long-term yields, with the 30-year yield reaching its highest since 2007, and oil prices hitting a four-week high.
Japan's Nikkei index also experienced a volatile week, reflecting the broader impact of these global pressures on risk assets.
Trump's Offer for Kim Meeting Met with Lukewarm ResponseTalks Cool
Former President Trump's proposal for another meeting with North Korean leader Kim Jong Un received a lukewarm response from Kim Yo Jong, signaling a decline in North Korea's urgency for negotiations.
North Korea's strengthened ties with China and Russia have reduced its perceived need for sanctions relief through talks with the US.
However, the possibility of a meeting around the APEC summit in Shenzhen later this year remains open.
Europe
Germany Sells 30-Year Bonds at Highest Yield Since 20113.79% Yield
Germany successfully sold 30-year bonds at a yield of 3.79%, the highest since 2011, indicating significant borrowing costs.
Commerzbank forecasts Germany's net bond supply to reach a record €40 billion in 2027, with Barclays projecting a new record for Eurozone net bond supply next year.
The continuous need for funding, from post-COVID recovery to the Iran conflict, is intensifying pressure on European bond markets.
Eurozone Business Activity Accelerates to 11-Month HighPMI 52.1
The Eurozone's Composite PMI rose to 52.1 in August (vs. 51.7 expected), marking the fastest growth since November last year.
New orders increased at their highest rate in approximately 40 months, primarily driven by the manufacturing sector.
Exports expanded for the first time since February 2022, and there are signs of some easing in inflationary pressures.
Mixed PMI Results Across Key European EconomiesMixed PMIs
Germany's Composite PMI of 51.0 (vs. 51.3 expected) indicated slight expansion, but service sector weakness offset manufacturing gains.
France's Services PMI contracted to 48.4 (vs. 49.8 expected), worse than anticipated due to a heatwave, though manufacturing rose to 51.5.
The UK's Services PMI reached a six-month high of 52.8 (vs. 51.8 expected), with consumer confidence also recovering to a two-year high.
UK Retail Sales Decline in July Post-Event Boost-0.5%
UK retail sales fell by -0.5% in July, a reversal after a surge in demand during the World Cup in June for items like air conditioners and fans.
Annual retail sales growth sharply decelerated from 3.8% to 1.6%, with clothing sales experiencing their largest drop since May.
Retailers initiated summer sales earlier than usual, contributing to the decline in sales volume.
Negotiated wage growth in the Eurozone slowed to 2.44% in Q2, down from 2.56% in Q1, signaling potential easing in monetary policy constraints.
Consumer inflation expectations for the next 12 months improved to 2.9% in July (from 3.0% in June), marking the third consecutive monthly decline.
Belgium's consumer confidence index worsened to -7 in August (from -5 in July), and the unemployment outlook rose for the third consecutive month to 14%.
Eurozone Government Bond Yields Adjust Amid Strong DataYields Up
Eurozone government bond yields saw minor adjustments following global bond market stress, with strong economic signals boosting expectations for EUR/USD.
The temporary relief from the US Treasury Secretary's intervention faded, causing yields to resume their upward trend.
If EUR/USD rises above 1.1696, it could target its May 6 high of 1.1797, with robust PMI improvements strengthening the euro's bullish prospects.
Germany's Machine Exports Decline, Gas Storage at RiskExports -0.8%
Germany's machine exports fell by -0.8% in the first half of the year, despite a strong June (+6.8% YoY to €18 billion), as a 57.8% surge in Middle East exports couldn't offset weakness in other markets.
Gas storage levels are currently at 50%, making the November 1 target of 70% increasingly challenging to meet.
The BDEW warned that while physically possible, the situation is tense, with rising gas prices due to the Iran conflict delaying corporate purchases.
Eurozone Wage Growth SlowsQ2 Slowdown
Wage growth in the Eurozone decelerated during the second quarter, according to data released by the European Central Bank.
This slowdown could influence the ECB's future monetary policy decisions, potentially easing pressure for further rate hikes.
Belgium Consumer Confidence FallsAug -7
Belgium's consumer confidence index dropped to -7 in August, down from -5 in July, as reported by the central bank.
The decline indicates a worsening sentiment among consumers regarding the economic outlook.
European Shares ClimbWeekly Decline
European equities saw gains today, boosted by rising gold prices, though a weekly decline remains in sight.
Despite today's uptick, broader market sentiment suggests caution among investors.
UK Service Sector Perks UpPMI 52.5
The UK's service sector showed signs of improvement in August, with the Flash Composite PMI rising to 52.5.
This figure exceeded forecasts of 51.6, adding to indicators of resilience in the British economy.
Eurozone Inflation Expectations TrimmedExpectations Down
Eurozone consumers have again lowered their inflation expectations, an ECB poll revealed.
This trend could alleviate some of the inflationary pressures perceived by the central bank.
Eurozone Business Activity RisesHighest Since Nov
Business activity growth in the Eurozone reached its highest level since November, according to the latest PMI data.
The increase suggests a strengthening economic momentum across the bloc.
Asia
China's State Land Sales Plummet-30.8%
China's state-owned land sales revenue for January to July plummeted by -30.8% year-over-year, indicating continued stress in the property sector.
This decline, coupled with a Guangzhou court accepting a bankruptcy liquidation application for an Evergrande (3333 HK) real estate subsidiary, underscores ongoing deleveraging efforts.
Despite these challenges, the Ministry of Finance's pledge for additional fiscal support helped maintain relatively stable market conditions in Asia.
Japan's Core CPI Nears BOJ TargetCPI 1.8%
Japan's July core Consumer Price Index (CPI) rose to 1.8% year-over-year, an increase from 1.6% in June, bringing it closer to the Bank of Japan's 2% target.
This acceleration in inflation is intensifying pressure on the BOJ for a potential additional interest rate hike at its September meeting.
The Japan 10-year government bond yield rose +1.3 basis points to 2.876%, suggesting that while US Treasury intervention briefly curbed the surge, upward pressure towards 3% remains.
Korean Markets Face Yield and Oil HeadwindsKOSPI +0.88%
South Korea's KOSPI index closed +0.88% higher today, and the Korean Won strengthened by -0.71% against the dollar amid broader dollar weakness.
However, the Korea 10-year government bond yield rose +8.0 basis points, signaling persistent interest rate burden.
Both the KOSPI and Taiwan's stock market are likely to end the week with declines, impacted by rising global bond yields and strong oil prices.
India's Trade Deficit WidensJuly $31.98B
India's trade deficit expanded to a six-month high of $31.98 billion in July, up from $30.43 billion in June and exceeding market expectations.
Exports rose 8.9% to $44.24 billion, while imports increased 7.6% to $76.22 billion, with rising oil prices and international shipping costs pressuring importers' margins.
Rupee Weakens FurtherYTD -6.5%
The Indian rupee continued to weaken, trading flat at 95.70 per U.S. dollar on Friday, marking a 0.3% weekly decline and a 6.5% year-to-date depreciation, making it one of Asia's worst-performing currencies.
Despite interventions by the Reserve Bank of India, the rupee's persistent weakness is evident, with dollar-rupee futures open interest at $3 billion.
Indian Rupee Futures+700M OI
Open interest in Indian rupee futures surged by 700 million, reaching a one-year high.
This increase is attributed to arbitrage trades and likely intervention by the central bank.
RBI Monetary PolicyHawkish Signal
The Reserve Bank of India (RBI) signaled an end to its easing cycle.
Overnight Index Swap (OIS) markets are now pricing in an almost 75 basis point hike over the next year.
The August Monetary Policy Committee (MPC) minutes were more hawkish than the actual policy, clearly signaling future rate increases for early October, December, and February.
Indian Government BondsYields Rising
Government bond yields are under upward pressure, with the benchmark 10-year bond testing 6.90%.
The 2036 bond yield rose to 6.8723%, marking its worst week since early April.
Weak demand for a 280 billion rupee ($2.93 billion) bond issuance contributed to the pressure.
Banking Sector LiquidityTight Liquidity
Banks are facing tight liquidity conditions, with the weighted average call rate at 5.23%, close to the RBI's repo rate of 5.25%.
This tightness is partly due to 2 trillion rupees ($2.1 billion) in Goods and Services Tax outflows.
ICICI Bank doubled its overseas borrowing limit to $5 billion to accelerate dollar bond and loan fundraising.
Indian Manufacturing PMI52.9 (Aug)
India's manufacturing Purchasing Managers' Index (PMI) for August was 52.9, its weakest expansion in five years.
The composite PMI, however, slightly improved to 54.6 from 54.3 in July, supported by a rebound in the services sector.
New orders remained sluggish, with services offsetting manufacturing weakness.
Construction Equipment Incentives$1.2B Plan
The Indian government is set to approve a $1.2 billion incentive plan to promote domestic manufacturing of construction equipment.
The initiative aims to attract $1.8 billion in new investment over seven years, with targets for local value addition.
This move seeks to localize machinery, such as tunneling equipment, which was previously fully imported, especially after border tensions with China.
China
Government Land Sales Revenue Plunges-30.8% YoY
China's government land sales revenue for January-July fell by 30.8% year-on-year, totaling 1.1731 trillion yuan.
This sharp decline, though a slight improvement from the 31.5% drop in January-June, underscores the ongoing weakness in the real estate sector and developers' reduced land purchases.
Evergrande Unit Bankruptcy AcceptedBankruptcy Case
A court in Guangzhou has accepted the bankruptcy liquidation case of an Evergrande (3333.HK) unit.
This development marks a significant step in the bankruptcy proceedings for the world's most indebted property developer, following a petition by Guangzhou Rural Commercial Bank due to debt defaults and insufficient assets.
Fiscal Support PledgedTimely Support
Chinese fiscal authorities have announced plans for additional, timely fiscal policies to counter the economic slowdown.
Measures include reorienting local government spending towards households and consumption, and increasing the cap on interest subsidies for small private enterprises and consumers from 3,000 yuan to 5,000 yuan.
Central Bank Surveys Long-Term Bond DemandBond Survey
China's central bank has surveyed funds regarding their willingness to invest in 10-year and 30-year long-term government bonds.
This move suggests potential efforts to manage long-term interest rates and support market liquidity.
Foreign Direct Investment Declines-6.2% YoY
Foreign direct investment into China decreased by 6.2% year-on-year in January-July, amounting to 43.83 billion yuan.
The decline reflects a weakening preference for investment in China amidst global economic uncertainties.
Tax Crackdown on Offshore TrustsTax Crackdown
Chinese authorities are tightening taxation on trust assets, imposing a 20% tax rate on transfers and annual income.
This regulatory enhancement aims to strengthen capital controls on wealthy individuals, prompting many to reassess or terminate their trust structures.
Yuan Strengthens3.5-Year High
The Chinese yuan continues to strengthen, trading near a three-and-a-half-year high against the U.S. dollar.
This appreciation is attributed to a weaker dollar and expectations surrounding the Federal Reserve's policy, with attention now turning to the Jackson Hole Symposium.
Japan
10-Year JGB Yield Nears 3%2.875%
The 10-year Japanese government bond yield is approaching the 3% threshold, adjusting to 2.875% today after hitting a 30-year high of 2.945% earlier in the week.
Despite some intervention by the U.S. Treasury to curb surging long-term rates, market analysts believe a breach of 3% is only delayed, driven by persistent inflation and government debt concerns.
July Core Inflation AcceleratesCore CPI 1.8%
Japan's core consumer price index (CPI) accelerated to 1.8% year-on-year in July, up from 1.6% in June, with overall inflation reaching 1.9%.
This brings inflation closer to the Bank of Japan's 2% target, fueled by a weaker yen and rising import costs from Middle East geopolitical tensions, prompting companies to pass on higher prices.
The August Manufacturing Purchasing Managers' Index (PMI) rose to 55.1 from 54.5 in July, while the Services PMI accelerated to 52.3 from 51.2.
This simultaneous acceleration demonstrates the economy's resilience, leading to expectations that the BOJ will consider a rate hike at its September 17-18 policy meeting.
Government Interprets Rate Hikes as GrowthGrowth Evidence
Prime Minister Takaichi stated that rising inflation and a gradual increase in long-term interest rates are natural phenomena reflecting economic growth.
The government plans to pursue economic growth that outpaces inflation through wage increases, signaling a policy shift towards normalization of interest rates.
BOJ Policy Meeting Date SetJuly 2027 Meeting
The Bank of Japan's July 2027 policy meeting is scheduled just before the terms of hawkish board members expire, potentially allowing PM Takaichi to reshape the board with dovish appointees.
The Finance Ministry has also raised its assumed interest rate for the FY2027/28 budget to 3.8% from 3.0% in the previous year, anticipating higher rates.
Nikkei Drops on Mideast TensionsWeekly -4%
The Nikkei 225 index closed down 0.3% today, contributing to a 4% weekly decline, its largest since the week ending July 17.
The drop was primarily driven by escalating Middle East tensions and a nearly $2 surge in oil prices overnight, following the U.S. announcement of 'toughest-ever' sanctions on Iran.
Yen Carry Trade Unwinding AcceleratesUSD/CHF 0.7950
The dollar/Swiss franc exchange rate plummeted to 0.7950 from 0.8206 on July 29, signaling an acceleration in the unwinding of yen carry trades.
This movement is influenced by widening inflation concerns and expectations of a BOJ rate hike in September.
Emerging Markets
Iran Emphasizes Overcoming SanctionsUS Sanctions
Iran's parliamentary speaker, Qalibaf, stressed the need to overcome 'unjust sanctions' after the U.S. Treasury Secretary Bessent announced 'toughest-ever sanctions' against Iran.
Details of the new sanctions, set to be unveiled on August 25, are expected to reduce the need for additional military operations.
Indonesia's Current Account Deficit WidensQ2 -3.3% GDP
Indonesia's current account deficit surged to 3.3% of GDP in the second quarter, marking its widest gap since 2018.
The balance of payments deficit improved to approximately -$880 million from -$9.1 billion in Q1, but Indonesia remains reliant on portfolio capital inflows to cover its current account, leaving it vulnerable to exchange rate volatility.
Bank of Thailand Holds Rates1.00% Until 2027
The Bank of Thailand is expected to maintain its benchmark interest rate at 1.00% in its upcoming decision and likely through 2027, according to a Reuters poll.
This stance is supported by weak domestic economic growth and contained consumer price inflation, which rose 1.95% in July, reducing pressure for further rate hikes.
Turkey Expected to Cut RatesSept Rate Cut
Turkey is projected to begin cutting its benchmark interest rate in September, following lower-than-expected inflation figures.
JPMorgan noted disinflationary momentum and an improving current account as justifications for monetary easing, maintaining a long position on the Turkish lira (USD/TRY ~48.065).
South African Rand StrengthensZAR/USD 16.055
The South African rand strengthened against a weaker U.S. dollar, supported by rising gold prices and signals from the U.S. Treasury Secretary regarding increased long-term bond purchases.
The rand traded at 16.055 against the dollar, up 0.4% from the previous day, benefiting from improved sentiment towards risk assets and precious metals.
Russia 'Conditionally Open' to Ukraine PeacePeace Talks
Russian Deputy Foreign Minister Ryabkov indicated that Russia is open to discussing new proposals for resolving the Ukraine conflict, provided they reflect 'realities on the ground'.
Ryabkov also noted that the U.S. has shown a 'constructive dialogue' and an 'understanding of Russia's position'.
Indonesia and China have agreed to revitalize cooperation in trade, energy, and mineral sectors.
Indonesian Foreign Minister Sugiono met with Chinese Foreign Minister Wang Yi, confirming agreements to enhance bilateral trade mechanisms and partnerships.
Korea
Exports Surge in Early August+56% Exports
South Korea's exports surged by 56% in the first 20 days of August, leading to a trade surplus of approximately $14 billion.
This significant increase, with exports growing over three times faster than imports (+19.0%), was primarily driven by a boom in semiconductor and AI chip demand.
BOK Deputy Governor Emphasizes CautionCareful Policy
Kwon Min-soo, the new Deputy Governor of the Bank of Korea, stressed the need for a cautious and flexible interest rate policy ahead of the August 28 decision.
He noted that while economic growth is robust, inflation remains above target, and financial stability risks persist, advocating for careful decisions given the potential side effects of rate hikes.
Dollar-Won Exchange Rate WeakeningWeakening Won
The BOK Deputy Governor stated that the dollar-won exchange rate is fundamentally expected to weaken.
The government reaffirmed its commitment to preemptively assess and respond to volatility in the foreign exchange, financial, bond, and housing markets.
KOSPI Plunges, Retail Investors Face LossesKOSPI -30%
The KOSPI index has plummeted 30% from its peak on June 19, leading to significant losses for retail investors.
A record increase in retail margin borrowing, following the approval of single-stock leveraged ETFs, has exacerbated volatility, potentially hindering South Korea's goal of MSCI index inclusion and eroding government credibility.
Samsung to Review Shareholder Return Plan$70B Plan
Samsung Electronics (005930.KS) board is set to discuss a $70 billion shareholder return plan on Friday.
The proposal, which may include a mix of special dividends and share buybacks/cancellations, comes amidst a surge in earnings driven by the AI chip boom, benefiting Samsung alongside SK Hynix.
Hyundai Motor Stages Full StrikeFirst in Decade
Hyundai Motor (005380.KS) union workers, approximately 40,000 strong, staged their first full strike in a decade on Friday.
The strike stems from a deadlock in wage negotiations, with demands including extended retirement age, an 800% bonus, and job protection against AI and automation; a partial strike in July resulted in 55,200 units of production loss, valued at approximately 2.3 trillion won.
Government Creates 'Future Response Fund'Chip Windfall Fund
The South Korean government plans to establish a 'Future Response Fund' using surplus tax revenues from the semiconductor boom.
The fund will allocate resources to youth job creation, housing support, marriage and childbirth incentive programs, as well as investments in the AI industry, regional development, and talent training.
Markets & Commodities
Brent Crude+6% Weekly
Brent crude prices advanced 6% over the week, nearing $94 per barrel.
Ongoing supply concerns stemming from the US-Iran conflict continue to support prices.
Top Gainers
Detail
Moderna (MRNA)
Healthcare sector. After-hours trading saw a -7.31% decline.
+176.97% | $70B
Estee Lauder (EL)
Consumer Staples sector. After-hours trading remained flat.
+16.30% | $35B
Merck (MRK)
Healthcare sector. After-hours trading remained flat.
+12.60% | $376B
Alexandria Real Estate Equities (ARE)
Real Estate sector. After-hours trading remained flat.
+10.27% | $9B
Marvell Technology (MRVL)
Information Technology sector. After-hours trading saw a -2.23% decline.
+9.85% | $208B
Coinbase Global (COIN)
Financials sector. After-hours trading saw a +6.37% increase.
+9.55% | $42B
Carvana (CVNA)
Consumer Discretionary sector. After-hours trading remained flat.
+8.37% | $78B
Newmont (NEM)
Materials sector. After-hours trading remained flat.
+7.85% | $132B
Fair Isaac (FICO)
Information Technology sector. After-hours trading remained flat.
+7.74% | $25B
CoStar Group (CSGP)
Real Estate sector. After-hours trading saw a +0.06% increase.
+7.49% | $14B
Companies
Moderna (MRNA) & Merck (MRK)Vaccine Success
The personalized mRNA melanoma vaccine (Intismeran + Keytruda combination) co-developed by Moderna and Merck met both recurrence-free survival and distant metastasis-free survival endpoints in its Phase 3 INTERPATH-001 trial.
Both companies plan to discuss the regulatory submission process with authorities, leading to Moderna's stock surging +87% and Merck's +6.8% immediately after the announcement.
Walmart (WMT)Sales Miss
Walmart's Q2 adjusted EPS of $0.81 surpassed the consensus of $0.74, and revenue of $187.9 billion also exceeded estimates.
However, US comparable store sales grew +2.6%, falling short of the +3.8% consensus, largely due to a -900 basis point impact on Health & Wellness sales from the Inflation Reduction Act's (IRA) drug pricing policy.
The company raised its annual revenue guidance to +4-5% but this remains below the +5.3% consensus, and its Q3 guidance for revenue (+3-3.75%) and adjusted EPS ($0.62-0.64) also fell short of market expectations, causing the stock to drop -5-6% in pre-market trading.
Marvell Technology (MRVL)$12.2B Google Deal
Marvell Technology signed a commercial agreement with Google for custom semiconductors, valued at approximately $12.2 billion.
Google received warrants allowing it to purchase up to 58.97 million shares at $206.58 per share, driving Marvell's stock up +5.7% in pre-market trading.
Analysts subsequently raised target prices, with UBS increasing to $310 from $300 and Melius Research to $325 from $250, reflecting improved outlooks.
Apple (AAPL)EU Fee Revision
Apple is restructuring its App Store fee system, effective October 1, to comply with the EU Digital Markets Act.
New fees include 26% for using Apple's in-app payment system, 20% for alternative payment options, 15% for external links within apps, and a 5% 'core technology commission' for transactions outside the App Store.
Palo Alto Networks (PANW)Target Price Hikes
Several investment firms, including BMO, UBS, Stifel, and Mizuho, significantly raised their target prices for Palo Alto Networks (e.g., Stifel from $330 to $415).
The company partnered with NTT Data to accelerate AI security transformation, aiming for $1 billion in joint business by 2029.
Meta Platforms (META)Child Safety Lawsuit
A multi-state lawsuit involving 29 states against Meta regarding alleged negligence in child safety has officially begun.
A former engineer testified that Mark Zuckerberg did not prioritize child safety, and the lawsuit is considered significant enough to potentially alter the fundamental operations of Facebook and Instagram.
Meta is also emerging as one of Microsoft's largest AI clients, increasing its cloud infrastructure investments to operate its own generative AI models (Llama) and integrate AI across its platforms.
Amazon (AMZN)Drone Expansion
Amazon plans to expand its drone delivery service to approximately 500 locations across the United States by the end of the year.
The company is also increasing its AWS data center investment in Louisiana from $12 billion to $18 billion, adding a third campus to its operations.
Amgen (AMGN)Target Price Hike
Piper Sandler raised its target price for Amgen from $427 to $457, indicating a positive outlook for future stock appreciation.
AbbVie (ABBV)Target Price Hike
Piper Sandler analysts increased their target price for AbbVie from $298 to $303, signaling a positive assessment of the stock's future performance.
JPMorgan Chase (JPM)India Ban
Indian market regulators issued a temporary order banning JPMorgan Chase subsidiary Copthall Mauritius Investment from the securities market.
The ban is based on allegations of trading manipulation, specifically exploiting new closing price calculation methods on the Indian stock exchange.
Alphabet (GOOGL)New Coverage
Rosenblatt Securities initiated new research coverage on Alphabet, assigning a Buy rating and setting a target price of $410.
Alphabet also secured a $12 billion artificial intelligence chip deal with semiconductor manufacturer Marvell Technology.