Daily News 7th Aug 26
Daily News
S&P 500 and Dow Slide as Hormuz Tensions Reignite and Oil Climbs Above $78; Gold Holds Above $4,200; Albemarle Jumps on Lithium Rebound While Trade Desk Sinks on Weak Guidance
07 August 2026
Today in Brief
Asia-Pacific markets were mixed, with Japan's Nikkei 225 slipping 0.85% even as the Topix added 0.13%, South Korea's Kospi falling 1.38% and the small-cap Kosdaq dropping 2.56%, while Hong Kong's Hang Seng rose 0.15% and mainland China's CSI 300 advanced 0.83%. U.S. stocks fell Thursday as traders watched the Middle East and weighed a slew of earnings, with the S&P 500 down 0.18% to 7,709.96, the Nasdaq Composite off 0.06% to 26,348.35, and the Dow sliding 464.02 points, or 0.85%, to 53,885, ending a five-day win streak on a 3% drop in Salesforce and a more than 6% decline in Sandisk. Gold held above $4,200 an ounce on Friday, pausing a recent rally as renewed tensions in the Strait of Hormuz pushed oil prices higher, while crude rose above $78 per barrel after Iran reportedly struck "hostile targets" in the strait following explosions near Qeshm Island.
In other news: Iran's chief negotiator accused President Trump of "theatre diplomacy" as Hormuz traffic neared a standstill; China's July exports grew 23.9% from a year earlier, beating forecasts on AI-driven demand for high-tech components; Ukraine struck two Russian oil refineries, including the Slavneft-Yanos facility in the Yaroslavl region; the ECB said a shift in business investment toward AI is helping ease the drag of war- and trade-related uncertainty on euro zone growth; AMD agreed to acquire Toronto-based inference chipmaker Taalas; Alibaba plans to charge major users of its next open-source Qwen model for a share of revenue; Albemarle shares jumped nearly 6% after a 155% EBITDA surge on recovering lithium prices; and Trade Desk shares sank more than 21.5% on weak third-quarter revenue guidance.
In Asia, Japan's Nikkei 225 fell 0.85% while the Topix rose 0.13%.
In Asia, Japan's Nikkei 225 fell 0.85% while the Topix rose 0.13%. The Kospi declined 1.38%, while the small-cap Kosdaq dropped 2.56%. Australia's benchmark S&P/ASX 200 was flat. Hong Kong's Hang Seng index added 0.15% and mainland China's CSI 300 advanced 0.83%. In extended U.S. trading, Airbnb shares rallied 9% after the vacation rental company posted a beat on the top and bottom lines. Cloudflare surged 16% after the cloud cybersecurity company issued a solid full year and current quarter outlook.
S&P 500 falls as oil prices pressure stocks; Dow drops more than 450 points to end 5-day win streak
The S&P 500 fell on Thursday as traders kept an eye on the Middle East, with a deal to reopen the key Strait of Hormuz in the works, and weighed a slew of corporate earnings releases. The broad market index lost 0.18% to end at 7,709.96, while the Nasdaq Composite declined 0.06% to 26,348.35. The Dow Jones Industrial Average fell 464.02 points, or 0.85%, to close at 53,885. The 30-stock index was weighed down by a 3% drop in shares of Salesforce after the company announced a leadership shuffle. Sandisk shares dropped more than 6%. The memory name posted fiscal fourth-quarter results that failed to impress investors.
Gold held above $4,200 an ounce on Friday, pausing a recent rally
Gold held above $4,200 an ounce on Friday, pausing a recent rally as renewed tensions in the Strait of Hormuz pushed oil prices higher, reigniting concerns about inflation and the prospect of a near-term Federal Reserve interest rate hike. Reports indicated that Iran struck what it described as "hostile targets" in the strait following explosions near Qeshm Island. Tehran is also seeking to bar US and Israeli vessels from transiting Hormuz while requiring countries it considers hostile to pay compensation before being allowed passage. Meanwhile, Fed officials have increasingly signalled they are prepared to raise interest rates soon amid rising inflationary risks, with markets pricing in a 25-basis-point hike in September. Separately, data from clearing institutions showed that institutional investors in China continued to build long positions in gold-backed assets as a hedge against volatility in technology stocks, bolstered by central bank buying.
Crude oil rose above $78 per barrel on Friday, building on the previous session's gains
Crude oil rose above $78 per barrel on Friday, building on the previous session's gains as renewed tensions in the Strait of Hormuz unsettled markets and cast fresh doubt over efforts to fully reopen the vital shipping route. Reports indicated that Iran struck what it described as "hostile targets" in the strait after explosions were reported near Qeshm Island. Under the proposed Iran-Oman agreement governing the waterway, Tehran seeks to prohibit US and Israeli vessels from transiting Hormuz and require countries deemed hostile to pay compensation before being granted passage. Iran has also proposed penalties equal to 20% of a vessel's cargo value for violations and said the strait would only be fully reopened once the US maritime blockade is lifted.
Iran's chief negotiator accuses Trump of 'theater diplomacy' with Hormuz traffic near standstill
Iran's chief negotiator has accused U.S. President Donald Trump of staging "theatre diplomacy," as Washington and Tehran offer conflicting accounts of bilateral engagement aimed at ending their months-long hostilities. ″'Massive attack coming … wait, never mind, they want to negotiate.' That's theatre diplomacy on loop," Mohammad Bagher Ghalibaf, Iran's parliament speaker and top negotiator, wrote in a post on X on Thursday in an apparent jibe at Trump. The remarks came days after Trump called off planned strikes and said the outlines of a deal had already been settled with Tehran. Iranian officials have rejected the claim, saying no talks were underway. The conflict is meanwhile broadening across the region, with Gulf energy infrastructure and key shipping chokepoints under renewed threat.
China's exports growth beats estimates in July, as AI-driven shipments surge
China's exports rose more than expected in July, though growth eased from June's blistering pace, with global demand for high-tech components helping absorb the country's goods. Exports grew 23.9% in U.S. dollar terms in July from a year earlier, official customs data showed Friday, topping Reuters-polled analysts' forecast for a 22.2% growth. That slowed from June's 27% surge, which was the fastest pace since October 2021. Imports rose 27.5% last month, just shy of Reuters estimates of 27.9% in a Reuters poll, slowing from June's 36% jump — the quickest in five years. A worldwide build-out of AI infrastructure has helped support the world's second-largest economy through a year of geopolitical shocks, keeping growth on track even as domestic consumption has been subdued.
Ukraine's military hits one of Russia's biggest oil refineries in long-range drone attack
Ukraine's military on Thursday struck two Russian oil refineries hundreds of miles from its border, Ukrainian President Volodymyr Zelenskyy said, as Kyiv continues to target the country's energy infrastructure. Ukraine's armed forces struck the Bashneft-Novoil refinery in Bashkortostan and the Slavneft-Yanos refinery in the Yaroslavl region, Zelenskyy said. In a post on social media, Zelenskyy said Ukraine's long-range sanctions had "once again worked to limit Russia's oil revenues, which it uses to finance the war and the killing of Ukrainians." The Slavneft-Yanos facility in Yaroslavl, which is situated hundreds of miles from the Ukraine border and about 170 miles (274 kilometres) northeast of Moscow, is one of Russia's biggest oil refineries. It has previously been targeted by Ukraine's military throughout the conflict.
ECB says investment shift towards AI helps ease drag of uncertainty on euro zone growth
Uncertainty created by wars and trade friction will continue to weigh on euro zone economic growth this year, but a shift in business investment towards intangible assets such as AI seems to be mitigating the drag, the ECB said on Wednesday. Uncertainty is estimated to have reduced euro zone economic growth by 0.4% between the first quarters of 2025 and 2026 as firms and households curbed spending, and it will continue to weigh on activity for the rest of the year. But spending on intangibles seems to be more resilient, and corporate surveys suggest that oversized spending on artificial intelligence so far this year is providing a buffer for an economy that is only seen growing by 1% in 2026.
AMD buys chip startup that hardwires AI models into its silicon
Advanced Micro Devices is counting on its graphics processing units to drive the bulk of its data center growth as cloud companies snap up all the advanced AI chips they can find. But as the generative artificial intelligence boom approaches its fourth anniversary, it's becoming clear that GPUs don't do everything. On Thursday, AMD said it's entered into an agreement to acquire Taalas, a Toronto-based startup that makes chips for inference. Taalas' accelerators are customized, or hard-wired for a single AI model, rather than being general purpose. In exchange for that loss of flexibility, Taalas' technology promises a less-expensive chip that it says can produce output for specific models thousands of times faster than a traditional GPU.
Alibaba plans to charge big users of its next open-source AI model, sources say
Chinese technology giant Alibaba plans to ask major users of the next version of its Qwen open-source AI model for a share of revenue they make from the hotly anticipated offering, according to two people familiar with the company's plans. Like last month's blockbuster model release from Chinese AI startup Moonshot, Alibaba's Qwen3.8-Max model is an open-source, open-weight model, meaning that the underlying learned settings that allow developers to run or adapt the system are available for download. By contrast, U.S. developers OpenAI, Anthropic and Alphabet's Google have closed-source models.
Albemarle Q2 2026 slides: lithium pricing surge drives 155% EBITDA jump – shares jumped nearly 6%
Albemarle Corporation presented its second-quarter 2026 earnings results on August 6, 2026, revealing a dramatic turnaround driven by recovering lithium prices and strong execution across its business segments. The Charlotte-based specialty chemicals company reported adjusted earnings per share of $3.75, substantially exceeding analyst expectations of $3.03, while revenue of $1.74 billion topped forecasts by 9.4%. Shares rose 5.49% to $125.37 following the announcement, reflecting investor enthusiasm for the company's improving fundamentals. The results come as global lithium markets have tightened considerably, with consumption growing 45% year-over-year through May 2026—well above the company's forecasted range of 15-40% growth. This demand surge, coupled with supply constraints and historically low inventory levels, has provided a supportive pricing environment for Albemarle's lithium products.
Trade Desk shares sink on Q2 revenue miss and weak guidance
The Trade Desk Inc. reported second-quarter earnings per share of $0.34, beating analyst estimates of $0.18. Revenue stood at $715 million, significantly below the consensus estimate of $752.61 million. The company provided third-quarter revenue guidance of $650 million, far missing the consensus estimate of $804 million. Shares fell more than 21.5% following the announcement. "This quarter did not meet the standard we set for ourselves, but it has reinforced our belief that we are focused on the right opportunities for the future," said Jeff Green, Co-Founder and CEO of The Trade Desk. "Marketers are navigating a complex environment, but complexity increases the value of decisioning, measurement and AI. We have a clear understanding of the factors that impacted our performance, and we are taking decisive action to strengthen our execution, upgrade our platform, and sharpen our focus on the areas where we can create the greatest value."
