Nvidia's strong earnings outlook eased AI demand concerns, propelling the Nasdaq up 1.57% and the S&P 500 by 0.72%, while the VIX fell 4.73%.
However, the six-month Iran war stalemate and President Trump's focus on economic pressure pushed WTI crude oil up 1.58% to $83.53.
Hawkish remarks from regional Fed presidents led to a 2.7bp rise in the US 10-year Treasury yield, with markets now pricing a 75% chance of a December rate hike.
The ECB's July minutes indicated a likely September rate increase to counter energy price impacts, contrasting with growing fiscal concerns in France.
Brazil's current account deficit expanded significantly in July, reaching its largest since 2019 and surpassing market expectations.
Global Markets
Detail
S&P 500
Closed at 7,730.99 on 8/27
+0.72%
Nasdaq
Closed at 26,541.34 on 8/27
+1.57%
STOXX 600
Closed at 651.86 on 8/27
-0.69%
Nikkei 225
Closed at 66,131.76 on 8/27
-0.20%
CSI 300
Closed at 4,630.28 on 8/27
+0.86%
KOSPI
Closed at 6,912.37 on 8/27
+1.53%
Hang Seng
Closed at 25,565.74 on 8/27
-0.34%
Dollar Index (DXY)
Closed at 99.14 on 8/27
N/A
USD/JPY
Closed at 159.41 on 8/28
+0.01%
EUR/USD
Closed at 1.17 on 8/28
-0.01%
USD/KRW
Closed at 1,380.60 on 8/27
-0.34%
USD/CNY
Closed at 6.72 on 8/27
-0.04%
US 10-Year Treasury
Closed at 4.676% on 8/27
+2.7bp
US 2-Year Treasury
Closed at 4.234% on 8/27
+2.5bp
Japan 10-Year JGB
Closed at 2.892% on 8/27
+0.7bp
Germany 10-Year Bund
Closed at 3.267% on 8/27
+2.9bp
Korea 10-Year KTB
Closed at 4.252% on 8/27
-2.0bp
US High Yield Spread
Closed at 267bp on 8/26
-3.0bp
WTI Crude Oil
Closed at 83.53 on 8/27
+1.58%
Gold
Closed at 4,588.97 on 8/27
-0.19%
Copper
Closed at 6.59 on 8/27
-0.15%
VIX Index
Closed at 14.50 on 8/27
-4.73%
Canada Current Account
Canada's Q2 current account swung to a C$8.84 billion surplus, significantly exceeding market expectations of a C$2 billion deficit.
+C$8.84B
Israeli Shekel (ILS)
JPMorgan analysis suggests political uncertainty from the upcoming October 27 election could cause the Israeli shekel to fluctuate by up to 3%.
±3% Volatility
Fed Inflation Outlook
Fed officials show diverging views on inflation ahead of Warsh's Jackson Hole speech, with Warsh maintaining a vague stance on inflation's challenge.
Mixed Signals
United States
Iran War Stalemate6 Months
The Iran war has entered its sixth month, settling into a prolonged stalemate despite initial pledges for a quick resolution within four weeks.
Shipping through the Strait of Hormuz faces significant disruptions, with no indication of Iran's willingness to surrender.
Trump's Iran StrategyEconomic Focus
President Trump reiterated his refusal to negotiate with Iran, confirming a strategy focused on economic pressure through 'Operation Economic Outcast.'
He warned countries trading with Iran about potential sanctions, aiming to intensify financial isolation.
July PCE Inflation3.7%
The July PCE inflation rate reached 3.7%, marking the 65th consecutive month above the Federal Reserve's target, intensifying debate between rate hike proponents and those favoring moderation.
Key drivers included a 5% rise in auto prices, over 3.5% for housing and utilities, and double-digit increases for recreational goods.
Fed's Hammack on Inflation+3% by Year-End
Cleveland Fed President Hammack projected inflation to reach 3% by year-end and 2.5% next year, underscoring the necessity of further rate hikes.
This hawkish stance contributes to the ongoing debate within the Fed regarding the appropriate monetary policy path.
Fed's Collins on PCEMixed Data
Boston Fed President Collins noted that while portfolio management fees distorted overall PCE figures, underlying components showed positive signals.
She maintained a forecast for gradual disinflation, provided there are no new shocks from tariffs or oil prices.
Jackson Hole OutlookUncertainty
Markets remain mixed ahead of Fed Chair Warsh's Jackson Hole speech, with tech stocks showing strength but uncertainty persisting over the future rate path.
Investors are closely watching for any clues on the Fed's September meeting direction, especially given the recent FOMC's 9-3 split vote.
Tech Stock RallyNVDA +1.57%
Nvidia's (NVDA) strong earnings forecast, which significantly exceeded expectations, alleviated concerns about slowing AI demand, driving the Nasdaq and S&P 500 higher.
Salesforce (CRM) also surged after raising its annual revenue outlook, adding to the positive sentiment across the technology sector.
US Treasury Yields10Y +2.7bp
Treasury yields edged higher, with the 10-year rising 2.7bp to 4.676% and the 2-year up 2.5bp to 4.234%, as the dollar showed mixed performance.
Futures markets now price a 35% chance of a September hike and a 75% cumulative probability of a hike by December.
Fed Internal DivisionsHawkish vs Dovish
The Federal Reserve exhibits internal divisions, with hawkish members like Hammack and Schmid emphasizing further tightening, while doves like Goolsbee warn of tariff-induced inflation risks.
Fed Chair Warsh's upcoming Jackson Hole keynote address is highly anticipated to provide direction amidst these conflicting viewpoints.
NATO Defense StrategyEuropean-led
The US Pentagon's policy advisor informed NATO European allies that the US is reviewing its military deployment in Europe, encouraging them to bolster their own defense capabilities.
A survey on defense spending, strategy, and procurement aims to guide the establishment of a European-led defense system.
Trump on Putin/NATONo Attack
President Trump stated that Russian President Putin will not attack NATO territory, while also downplaying reports of the CIA Director's visit to Moscow to warn Russian officials.
This assertion comes amidst ongoing geopolitical tensions and a re-evaluation of US defense posture in Europe.
Trump on Gas PricesMeeting Planned
President Trump is scheduled to meet with executives from refineries and gasoline retailers next week to discuss ways to alleviate rising fuel prices.
This political move aims to ease pressure on consumers ahead of the November midterm elections, where securing Republican seats is crucial.
SRE Expansion1.8B Gallons
Trump is reportedly considering expanding Small Refinery Exemptions (SREs) from approximately 1.4 billion gallons to 1.8 billion gallons.
This potential move faces strong opposition from the agriculture and biofuel industries, with an Iowa Republican senator criticizing it as a 'large refiner handout.'
Europe
ECB Rate Hike SignalSeptember Hike
The European Central Bank's (ECB) July meeting minutes revealed that policymakers deemed further rate hikes essential to curb energy price increases stemming from the Iran war.
This hawkish stance, which goes beyond a 'hawkish-neutral' position, has led to expectations of a September hike, reflected in rising Eurozone bond yields, with Germany's 10-year yield near a 15-year high.
France Fiscal ConcernsCAC 40 -1.7%
France is experiencing a loss of market confidence due to record debt and political uncertainty ahead of the presidential election, causing the CAC 40 to fall 1.7% to a one-month low.
The spread between French and German bond yields has widened to its highest level since 2024, signaling deteriorating fiscal credibility.
With a divided parliament already seeing two prime ministers resign over budget issues, the country faces deepening fiscal instability before next spring's election.
BoE Rate Hike Outlook<1 Hike
Expectations for a Bank of England (BoE) rate hike this year have diminished to less than one, causing the pound to hit a weekly low as long positions are unwound ahead of the Fed Chair's Jackson Hole speech.
The pound retreated 0.1% to $1.3578 from its six-month high, with markets now pricing in less than a 0.25% cumulative hike by the BoE this year, leading to a continued downtrend in Gilt yields.
Eurozone Bond YieldsGermany 10Y +2-3bp
Eurozone bond yields edged higher, with Germany's 10-year yield rising 2-3bp to 3.25%, near a 15-year high, as 2-year and 30-year yields also increased.
This rise is linked to persistent high oil prices, fueled by signals of difficulties in Iran-Qatar mediation talks to reopen the Strait of Hormuz.
UniCredit (UCG) / Commerzbank (CBK)48% Stake
UniCredit CEO successfully acquired a 48% stake in Commerzbank (CBK), leveraging the German government's 2024 sale of its 35% stake as a springboard for the takeover.
The CEO is scheduled to meet with the German Finance Minister, indicating the acquisition battle is entering a decisive phase, while Germany's government appears weakened by internal divisions and lack of interest in defending the bank.
Italy Windfall TaxEni (ENI) -6%
Italy is considering an energy windfall tax to mitigate the domestic impact of soaring oil prices caused by the Iran war, leading to a 6% cumulative drop in Eni (ENI) shares since August 20.
The government aims to transfer the burden of high energy costs to energy companies, with Eni's stock closing around 1,000 euros.
Russian Frozen Assets€210B
Foreign ministers from the Netherlands, Poland, Spain, and Sweden have called for a renewed discussion on utilizing frozen Russian assets for Ukraine's reconstruction at the upcoming September 1-2 meeting.
Approximately €210 billion of Russian assets, frozen by the EU in December, are being considered for this purpose, though Belgium's undecided stance makes unanimous agreement, and thus implementation, uncertain.
EU Budget ProposalUp to +60%
Germany's Merz opposed the European Commission's proposal to increase the EU budget by up to 60% to approximately €2 trillion for 2028-2034, citing sustainability concerns.
He urged other net contributor leaders to advocate for maintaining the EU budget's long-term sustainability.
European EconomyMixed Trends
European economic indicators present a mixed picture: Germany's Ifo employment index rose 1.8 points to 94.8, its highest since May 2025, despite ongoing job cuts.
Sweden's GDP growth forecast was raised to 2.5% (from 2.3%), and Denmark's to 3.7% (from 2.7%), boosted by Novo Nordisk's (NVO) Wegovy exports.
The UK's NEET (Not in Education, Employment, or Training) for 16-24 year olds improved to 981,000, falling below 1 million but remaining high since 2013.
UK FTSE 100-0.8%
The UK's FTSE 100 fell 0.8% to 10,792.54 points, marking its largest drop in 1.5 months, primarily driven by declines in banking and energy stocks.
Despite rising oil prices, investor sentiment was dominated by risk aversion stemming from France's fiscal and election uncertainties, while the FTSE 250 remained flat, indicating a flight from large-cap exposure.
Latin America
Brazil's Current Account Deficit Widens-$8.11B
Brazil's current account deficit reached $8.11 billion in July, significantly exceeding the market forecast of $6.6 billion.
This marks the largest deficit for the month of July since 2019, driven by a worsening service balance that expanded by approximately $500 million year-over-year.
Foreign direct investment (FDI) also fell short of expectations, coming in at $7.46 billion against a projected $7.92 billion.
Brazil Central Government Posts Primary Surplus+$2.1B
Brazil's central government recorded a primary surplus of 10.8 billion reais (approximately $2.1 billion) in July, slightly above the 10.7 billion reais expected.
This temporary improvement was attributed to a calendar effect, as court-ordered payments were primarily processed in March.
The Planning Minister indicated that achieving a primary surplus by 2027 remains possible, even when including expenses not in the target.
Brazil Oil Export Tax Faces Legal Battle12% Tax
A legal conflict has intensified over Brazil's 12% oil export tax, with a court ordering its temporary suspension.
Concurrently, the government's foreign trade council (Camex) approved a 60-day extension of the tax, creating a contradictory situation.
A legal dispute with oil companies is anticipated around the expected expiration date of September 9.
LatAm Currencies Weaken Ahead of Jackson Hole-0.1%
Latin American currencies and stock indices saw a 0.1% weakening, as investors adopted a cautious approach ahead of the Federal Reserve Chair's Jackson Hole speech.
Brazil's deteriorating current account balance provided a concrete basis for the observed depreciation of its currency.
Colombia Proposes Revised 2027 Budget$206.02B
Colombia's new right-leaning government submitted a revised 2027 budget proposal totaling 634.95 trillion pesos ($206.02 billion) to lawmakers.
This new plan rejected the previous left-wing government's budget of 575.7 trillion pesos ($186.8 billion), with the 2026 fiscal deficit projected to worsen to -7.2%.
The government also plans to cut an additional 21.9 trillion pesos from the 2026 budget, with the 2027 budget requiring congressional approval by October 20.
Argentina Peso Hits Record Low1,520 ARS/USD
The Argentine peso (ARS) depreciated by 0.33% to an all-time low of 1,520 pesos per US dollar.
Analysts view this extreme weakness as within market expectations, reflecting the economy's structural high inflation trend.
Emerging Markets
Syria Reconnects to Visa and MastercardVisa/Mastercard
Syria began reconnecting to the Visa and Mastercard international payment networks days after the US lifted its designation as a state sponsor of terrorism.
The first international card transactions in decades were conducted, with Syrian President Ahmed al-Sharaa reportedly participating in a Visa transaction test.
The Syrian Central Bank has prioritized reintegrating into the global financial system as a key step for national reconstruction.
Iran War Shifts to Economic Stalemate6-Month Shift
After six months, the conflict involving Iran has transitioned from military attacks to an economic siege and naval blockade.
Analysts suggest that the Iranian government, having survived military threats, believes time is on its side to maintain its power base.
Gulf states are concerned about long-term regional instability from a prolonged stalemate, fearing that intensified economic hardship may not alter the regime's policies.
Rwanda Central Bank Hikes Key Rate+50bps to 8.75%
Rwanda's central bank raised its key policy rate by 50 basis points to 8.75% to combat inflation influenced by the Middle East conflict.
The Governor stated the hike aims to anchor inflation expectations, prevent secondary effects, and bring inflation back to target by the second half of 2027.
Russian Ruble Hits Multi-Month Low-2% vs USD
The Russian ruble depreciated by over 2% against the dollar and yuan, reaching a multi-month low, with August projected to be its weakest month this year.
This weakness is attributed to a triple pressure: the end of tax-related foreign currency support, surging demand for fuel and refining equipment imports due to attacks on energy infrastructure in Ukraine, and declining oil prices.
Russia Threatens UK Military TargetsUK Missile Use
Russia's Foreign Ministry warned it could strike UK military targets, both inside and outside British territory, in response to Ukraine's use of British long-range cruise missiles against Russian targets.
Russia claimed the UK is 'one step closer' to complicity in terrorism, potentially leading to 'catastrophic consequences,' and urged the UK government to reconsider its Ukraine policy.
Poland MPC Sees Inflation Near Target by H2 20272.5% Target
Minutes from Poland's central bank's Monetary Policy Council (MPC) revealed expectations for inflation to return to around the 2.5% target by the second half of 2027.
The MPC noted a continued slowdown in wage growth, easing inflationary pressures, but acknowledged uncertainty from commodity prices, fiscal policy, and potential VAT and fuel tax hikes.
Projected economic growth is deemed appropriate, not expected to generate excessive inflationary pressure.
Indonesia Approves First Female Central Bank GovernorDestry Damayanti
Indonesia's parliamentary finance committee approved Destry Damayanti, the current interim governor, as the next central bank governor, pending final approval from the full parliament.
Damayanti, a senior deputy governor, is praised for her internal promotion and organizational capabilities, set to serve a five-year term.
This appointment marks the first time a woman will lead Bank Indonesia.
China
Prudential Hong Kong New Business DeclinesH1 Decline
Prudential reported a year-on-year decline in new business profit from mainland Chinese customers in Hong Kong during the first half.
This is seen as a signal of Beijing's efforts to curb cross-border capital outflows through asset regulation.
Despite the decline, Prudential is assessed to be in a strong position with sufficient surplus capital to navigate future uncertainties.
Korea
SK Hynix to Mass Produce AI Chips in Indiana$4B Investment
SK Hynix held a groundbreaking ceremony for its $4 billion advanced packaging and R&D facility in Indiana, securing $458 million in US government grants and up to $500 million in loans.
The company plans to begin mass production of HBM4E (High Bandwidth Memory) chips from Q3 2029, aiming to enhance access to key customers like Nvidia, Microsoft, and Google.
This investment in facilities and supply chain is expected to create approximately 7,000 jobs.
Asia
Taiwan Parliament Rejects Government Drone PlanNT$21B Rejected
Taiwan's opposition-led parliament rejected the government's special budget of NT$21 billion (approximately $660 million) to purchase new military drones by 2031.
Instead, the parliament passed its own version, proposing an annual drone budget of NT$4 billion.
The government had emphasized the necessity of drones to counter China's military threats but faced strong opposition from the parliamentary majority.
S&P Maintains India's Credit RatingBBB/A-2 Stable
S&P maintained India's sovereign credit rating at 'BBB/A-2' with a stable outlook, citing policy continuity and high infrastructure investment as drivers for long-term growth.
The agency forecasts a robust real GDP growth rate of 6.6% for 2026, indicating sustained economic expansion.
However, S&P highlighted the risk of high oil prices worsening the external balance and increasing inflationary pressures, given India's significant reliance on crude oil imports.
India Government Bond Yields Rise+4bps
India's benchmark 6.94% 2036 bond yield rose 4 basis points to close at 6.8901%, reflecting weak demand in the bond market.
Treasury bill auctions also saw poor demand, with 182-day and 364-day yields hitting three-month highs.
Market participants anticipate the Reserve Bank of India (RBI) will withdraw excess liquidity from the banking system ahead of potential policy tightening, exacerbating demand concerns amid rising bond supply.
HDFC Bank (HDFCBANK) Hits 2.5-Year Low-28% YTD
HDFC Bank (HDFCBANK), India's largest private lender, saw its stock fall for a third consecutive trading day, reaching a 2.5-year low.
The bank's stock is down 28% year-to-date, tracking its worst annual performance since 2008, amid accumulating legal and management risks.
Uncertainty surrounding CEO reappointment delays and ongoing legal/regulatory issues have deepened investor concerns, with Macquarie suggesting a 3-year renewal could help, but temporary extensions worsen worries.
Top Gainers
Detail
Salesforce (CRM)
Information Technology sector; market cap $206B.
+22.58%
CrowdStrike Holdings (CRWD)
Information Technology sector; market cap $232B.
+20.50%
Veeva Systems (VEEV)
Healthcare sector; market cap $46B.
+15.20%
Synopsys (SNPS)
Information Technology sector; market cap $89B.
+13.39%
Palo Alto Networks (PANW)
Information Technology sector; market cap $312B.
+12.83%
ServiceNow (NOW)
Information Technology sector; market cap $143B.
+10.04%
Fortinet (FTNT)
Information Technology sector; market cap $127B.
+9.67%
NVIDIA (NVDA)
Information Technology sector; market cap $5,517B.
+8.74%
Datadog (DDOG)
Information Technology sector; market cap $87B.
+6.70%
Autodesk (ADSK)
Information Technology sector; market cap $57B.
+6.21%
Companies
NVIDIA (NVDA)+8.74%
Q2 revenue reached $96.2B, surpassing consensus of $92.2B, with adjusted EPS of $2.22, above $2.10 estimates.
Data Center revenue surged 117% year-over-year to $89B; Q3 revenue guidance of $108B also exceeded consensus.
FY28 revenue growth is tentatively projected at approximately +70%, and new GPU supply contracts with AWS and the US government were disclosed.
Marvell Technology (MRVL)-1.49%
Q2 revenue was $2.74B, exceeding consensus, with adjusted EPS of $0.94, above estimates of $0.92.
The CEO raised FY2027 revenue outlook to $12B (+45% YoY) and FY2028 to $18B (+50% YoY), driven by strong data center and custom chip growth.
Q3 non-GAAP gross margin guidance of 52.9-53.9% was lower than Q2's 58.9%, which weighed on the stock.
SanDisk (SNDK) & Kioxia-0.96%
SanDisk and Kioxia announced a joint investment of over $30B (5 trillion yen) in Japan by 2032 to expand AI memory production capacity.
This plan includes constructing a new memory chip production facility at Kioxia's Kitakami plant, with approximately $11.3B allocated for this part.
The investment is contingent on support from the Japanese government.
Meta Platforms (META)-0.87%
Meta agreed to an $18B settlement over 10 years with US states regarding youth social media addiction and mental health harms.
The settlement mandates screen time management and parental control features on Instagram and Facebook.
Global regulatory risks are expanding, with the EU Commission continuing discussions on DSA violations and Poland requesting a €250M fine.
Moderna (MRNA)-4.60%
Moderna announced plans for a $2B private placement of convertible senior notes, causing a pre-market stock drop of -5.6% due to dilution concerns.
A hedge overlay was purchased to offset potential share dilution, capped at a minimum 150% premium.
The FDA approved updated Spikevax (COVID vaccine) and mRESVIA (multi-respiratory vaccine) formulations for the 2026-2027 respiratory season.
IREN+2.40%
FY26 revenue is projected at $707M, falling below analyst expectations of $740.3M, and the company transitioned to a net loss.
The net loss was primarily due to non-cash impairment charges from past Bitcoin mining equipment disposals, despite growth in its AI cloud business.
IREN is expanding its AI cloud platform through multi-year contracts and M&A, securing approximately $4B in annual recurring revenue for 2026.
Abbott Laboratories (ABT)-2.20%
Abbott's next-generation stroke prevention device, Amulet 360, received European CE Mark approval.
The first clinical procedures using the device were successfully completed in Germany and Denmark, with broader European expansion expected in the coming weeks.
JPMorgan Chase (JPM)-0.64%
JPMorgan led a $5B debt package for generative AI startup Volta to build data centers, marking a significant step for large banks in AI financing.
The bank is deeply involved in conflicts over capital rule revisions, urging the withdrawal of GSIB capital rule adjustments.
JPMorgan strongly opposes proposed rule changes, stating they would result in a $13B loss in capital relief.
DigitalOcean Holdings (DOCN)+5.82%
Truist Securities initiated coverage on DigitalOcean Holdings with a Buy rating.
The firm set a price target of $175 for the company.
Home Depot (HD)-1.86%
Home Depot is expanding its 'Magic Apron' in-store customer guidance feature.
This enhancement aims to provide personalized and localized product information and shopping assistance.
Lam Research (LRCX)+1.82%
The board of directors approved an increase in the quarterly dividend.
The dividend per share was raised by +26.9%, from $0.26 to $0.33.
Bank of America (BAC)-1.70%
Federal judge Jed Rakoff granted final approval to Bank of America's $72.5M settlement.
The settlement resolves a class-action lawsuit with female victims of Jeffrey Epstein's sexual abuse, who accused the bank of facilitating his misconduct.
Johnson & Johnson (JNJ)-1.57%
China's drug regulator approved Johnson & Johnson's new oral drug for psoriasis.
Psoriasis affects over 8.4 million patients in China, intensifying competition with existing treatments like Bristol Myers' Sotyktu and AbbVie.
Amazon (AMZN)-1.54%
Amazon Bedrock, its cloud-based AI model service platform, began supporting OpenAI's new GPT-5.6 based models, Tera and Luna, in India.
This includes inter-regional inference capabilities in India, improving response times and service availability.
Mastercard (MA)-1.13%
Eased international sanctions on Syria led to the first international card transactions in Syria in over 15 years.
Mastercard collaborated with Syria's Central Bank and QNB Group to reconnect to global payment networks, signaling financial reintegration.
Visa (V)-1.10%
Visa strengthened its cybersecurity portfolio and launched three new advisory services to counter AI-era cyber threats.
The company also participated in the first international card transactions in Syria in over 15 years, following eased sanctions.
Applied Materials (AMAT)+0.54%
Akash Palkhiwala was newly appointed to Applied Materials' Board of Directors.
Thermo Fisher Scientific (TMO)-0.48%
Thermo Fisher Scientific launched a new electron detector, 'EMPAD G2', aimed at advancing materials research.
Alphabet (GOOGL)-0.39%
Google released 'Gemini Omni 1.1 Flash', an AI model for developers with enhanced video capabilities.
The company settled a class-action lawsuit with UK app developers for £260M (approx. $353M) regarding Play Store fees.
Google Cloud and Clearlake Capital formed a strategic partnership to provide AI enterprise solutions to Clearlake portfolio companies.
GE Vernova (GEV)+0.08%
GE Vernova appointed Claire McDonough, former Rivian CFO, as its new Chief Financial Officer, effective January 1, 2027.
Current CFO Ken Parks will transition to a strategic advisor role before his retirement in April 2027.
Apple (AAPL)N/A
Apple confirmed its new product launch event for September 9.
Amgen (AMGN)N/A
Amgen's Tezspire met all primary and secondary endpoints in its Phase 3 trial for eosinophilic esophagitis.
AbbVie (ABBV)N/A
AbbVie submitted Skyrizi subcutaneous induction therapy for Crohn's disease indication to the EMA.