Daily News 10th Aug 26
Daily News
S&P 500 Hits Record Close as Weak Jobs Data Eases Fed Hike Bets; Gold Holds Above $4,300, Oil Nears $79 on Hormuz Standoff; China Inflation Eases to 0.5%
10 August 2026
Today in Brief
Asia-Pacific markets were broadly higher, with Japan's Nikkei 225 adding over 0.54% and the Topix marginally higher, South Korea's Kospi up 0.53% and the small-cap Kosdaq advancing 1.48%, while Australia's S&P/ASX 200 gained 0.54%; WTI crude rose 1% to just above $79 a barrel on Sunday. U.S. stocks rose Friday, with the S&P 500 climbing 0.62% to a record close of 7,757.64, the Nasdaq Composite outperforming with a 1.3% gain to 26,690.62, and the Dow adding 151.83 points, or 0.28%, to 54,036.93, as traders read an unexpected July jobs loss as reducing the need for the Federal Reserve to raise rates soon; stocks posted a second straight week of gains, with the S&P up 3.6% and the Nasdaq up 5.2% on the week. Gold remained above $4,300 an ounce on Monday after surging more than 7% last week on the weak labor data, while crude climbed toward $79 per barrel, marking a third consecutive session of gains as uncertainty persisted over efforts to reopen the Strait of Hormuz.
In other news: China's annual inflation eased to 0.5% in July from 1.0% the prior month, missing forecasts; Iran denied any direct talks with the U.S. on opening the Strait of Hormuz as Houthis claimed an attack on a Saudi refinery; Israeli Prime Minister Benjamin Netanyahu restated his rejection of President Trump's latest Gaza plan; the Pentagon pressed U.S. defense companies to accelerate weapons production amid depleted stockpiles; Berkshire Hathaway's operating earnings climbed 16% as CEO Greg Abel began deploying Warren Buffett's cash hoard; Sony and TSMC agreed to spend $6.3 billion on a joint venture to make next-generation image sensors; Apple has been testing memory chips from China's CXMT for iPhones and MacBooks; and India's Maruti Suzuki said it expects the domestic passenger vehicle market to grow to as much as 6.3 million units by fiscal 2031.
In Asia, Japan's Nikkei 225 added over 0.54% while the Topix was marginally higher
In Asia, Japan's Nikkei 225 added over 0.54% while the Topix was marginally higher. The Kospi gained 0.53% and the small-cap Kosdaq advanced 1.48%. Australia's benchmark S&P/ASX 200 was 0.54% higher. Investor optimism that the U.S. and Iran might be close to coming to an agreement to allow vessels to freely transit the critical Hormuz strait dimmed over the weekend after Iran denied engaging in any direct negotiations with the U.S. around opening the waterway. WTI crude oil rose 1% to just above $79 a barrel on Sunday.
S&P 500 rises to record close Friday and posts strongest week since April
The S&P 500 rose on Friday as traders interpreted an unexpected loss of jobs in July as meaning the Federal Reserve won't need to raise interest rates soon and can leave monetary policy on hold for now. The broad market index advanced 0.62% for a record close of 7,757.64, while the Nasdaq Composite outperformed, climbing 1.3% to 26,690.62. The Dow Jones Industrial Average added 151.83 points, or 0.28%, to end at 54,036.93. Stocks posted a second straight week of gains. The S&P 500 — which closed above 7,700 for the first time ever earlier this week — advanced 3.6% in the period. The Nasdaq saw a gain of 5.2%, thanks to a bounce-back in chip stocks.
Gold remained above $4,300 an ounce on Monday after surging more than 7% last week
Gold remained above $4,300 an ounce on Monday after surging more than 7% last week, supported by an unexpected contraction in the US labor market that led traders to reduce expectations for a near-term Federal Reserve interest rate hike. Data released Friday showed the US economy unexpectedly lost 23K jobs in July, following a downwardly revised 20K increase in June and falling well short of forecasts for an 80K gain. Markets now price around a 44% chance of a 25-basis point rate hike in September, down from 67% a week earlier. Gold also held its gains even after oil prices climbed higher as uncertainty persisted over efforts to reopen the Strait of Hormuz. Iran said talks with Oman were close to an agreement but denied holding direct negotiations with the US, despite Washington's claims that a deal was imminent.
Crude oil climbed toward $79 per barrel on Monday, marking a third consecutive session of gains
Crude oil climbed toward $79 per barrel on Monday, marking a third consecutive session of gains as uncertainty persisted over efforts to reopen the Strait of Hormuz. Iran said over the weekend that talks with Oman on establishing a shipping route through the strategic waterway were nearing an agreement, but warned that any arrangement would not lead to an immediate reopening of Hormuz. Tehran also rejected direct negotiations with the US for now, citing breaches of the interim peace deal reached in June, while maintaining demands for an end to the US naval blockade, the lifting of sanctions and compensation for war damages. Meanwhile, President Donald Trump signalled patience amid mounting pressure on the US to reach a deal with Tehran.
China's annual inflation eased to 0.5% in July 2026 from 1.0% in the prior month
China's annual inflation eased to 0.5% in July 2026 from 1.0% in the prior month, falling short of market forecasts of 0.8%. It was the lowest point since January, as food prices continued to decline while non-food inflation slowed further. Food cost fell for the fourth straight month (-1.5% vs -1.6% in June), weighed by a further drop in pork prices amid abundant supply and weak consumption. Meanwhile, non-food prices rose at a softer rate (0.9% vs 1.5%), with transport costs up more modestly (0.4% vs 4.1%) after a government fuel-price cut and easing global energy costs as Middle East supply disruptions subsided. Education costs also eased (1.3% vs 1.4%) while housing cost fell further (-0.3% vs -0.3%).
Iran denies any direct talks with U.S. on opening Strait of Hormuz as Houthis claim attack on Saudi refinery
Iranian Foreign Minister Abbas Araghchi said Tehran is not currently in direct talks with the U.S. to end the war with Iran and open the Strait of Hormuz, despite Washington's assertions that a deal is near. A brief hiatus in fighting between the U.S. and Iran after a June 17 memorandum of understanding has been followed by weeks of Iranian drone and missile attacks on shipping in the strait and neighbouring Gulf countries, as well as counterstrike by the U.S. on Iranian targets. Araghchi said Sunday that his country is not engaging in talks with the U.S., but added that "messages are being exchanged through intermediaries," according to news agency Mehr. Araghchi also reportedly said that if Iran strikes a deal with Oman to secure a trade route through the strait, the U.S. still must meet Tehran's conditions to reopen the strait.
Netanyahu says Trump's new Gaza plan is unacceptable
Israeli Prime Minister Benjamin Netanyahu restated his rejection of U.S. President Donald Trump's latest Gaza plan in televised remarks to his right-wing government on Sunday, even as Israel's military has effectively halted attacks in the territory under pressure from Trump. Netanyahu is struggling in the polls as he seeks re-election at a vote due on Oct. 27 but is caught between far-right ministers angered by concessions in Gaza and his key military backer, Trump, who wants progress toward ending the conflict there with a new 15-point roadmap. Israel has scaled back attacks in Gaza since Monday, when Nikolay Mladenov, the Gaza envoy for Trump's Board of Peace that oversees the ceasefire, met with Netanyahu.
Pentagon pushes defense companies to boost weapons production after concerns of depleted stocks
The Pentagon is pressing the U.S. defense industry to accelerate production of weapons to help replenish its diminished stockpile of munitions, including those depleted in the ongoing war with Iran. Pentagon spokesman Sean Parnell said in a statement Saturday that the department was actively focused on boosting munitions acquisitions to provide "the weapons our warfighters need at the pace the threat demands." He confirmed department efforts in the last week to significantly speed the process but insisted it was part of a broader modernization effort that predated the five-month-old conflict. Deputy Defense Secretary Steve Feinberg wrote to industry leaders on Wednesday, giving them no more than 21 days to submit plans to "drive significantly faster, more aggressive delivery schedules and/or increased production for critical capabilities," according to a memo obtained by The Washington Post.
Berkshire earnings rose last quarter and CEO Greg Abel is starting to deploy Buffett's massive cash hoard
Berkshire Hathaway's operating earnings climbed 16% in the second quarter as strength across its energy, railroad and manufacturing businesses more than offset weaker insurance results. But the bigger takeaway from the results is that CEO Greg Abel, 64, is starting to put the record cash hoard amassed by Warren Buffett to work on buybacks and stock purchases. Operating earnings rose to $12.98 billion from $11.16 billion a year earlier. Manufacturing, service and retailing earnings jumped 24% to $4.47 billion, while Berkshire Hathaway Energy's profit surged 27% to $891 million. BNSF, the company's railroad, posted a 6% increase to $1.56 billion. Insurance was a weak spot. Underwriting earnings fell 13% to $1.73 billion from $1.99 billion a year earlier, while insurance investment income declined 9% to $3.06 billion.
Sony, TSMC to spend $6.3 billion to jointly make image sensors
Sony Group and Taiwan's TSMC plan to spend around 1 trillion yen ($6.32 billion) to jointly make next-generation microchips used in image sensors, the Nikkei business daily said on Monday. A joint venture owned about 60% by Sony and 40% by TSMC will start commercial production as early as 2029 in southern Japan's Kumamoto prefecture, the paper said. The two tech giants said in May they planned to form a joint venture in Japan to develop and manufacture next-generation image sensors, combining Sony's sensor design expertise with TSMC's manufacturing and process technology strengths. Sony and TSMC also said then that the partnership will explore opportunities in physical artificial intelligence applications such as automotive and robotics.
Apple tests China's CXMT memory chips for iPhones and MacBooks
Apple has been testing memory chips from China's CXMT across product lines including iPhones and MacBooks, to mitigate a component shortage fueled by the AI boom, the Wall Street Journal reported on Sunday. Apple held early talks with CXMT, which is China's largest chipmaker by market value, about supplying components with the goal of using them in some devices sold in China, the report said, citing people familiar with the matter. Reuters could not immediately verify the report. Apple and CXMT did not respond to Reuters' requests for comment. Reuters had earlier exclusively reported that CXMT was considering building a second memory-chip plant in Beijing to boost production.
India's Maruti sees passenger vehicle market rising to up to 6.3 million units by 2031
India's largest carmaker, Maruti Suzuki India expects the domestic passenger vehicle market to grow to 6.1 million-6.3 million units by fiscal year 2030-31, driven by a revival in demand for small cars and a stronger sport utility vehicle segment, Chairman R.C. Bhargava said. Maruti is reassessing its five-year growth targets as it expects the small-car segment to expand significantly faster than in the past five years, the company said in a statement on Sunday, accompanying its 2025/26 annual report. Maruti sold a record 2.42 million vehicles and exported an all-time high 447,000 units in FY26, and expects to reach its next million-unit sales milestone earlier than previously projected. The company plans to invest about 350 billion rupees ($4 billion) to raise annual production capacity to 3.65 million vehicles by FY31. Maruti's board has approved an initial investment of 5.61 billion rupees to set up four biogas plants as part of its clean-energy strategy.
