Daily News 12th Aug 26
Daily News
S&P 500 Posts Back-to-Back Losses on Tech Sell-Off as Hormuz Hopes Falter; Gold Nears $4,400, Oil Climbs Toward $84; Houthi Attack Kills Six in Red Sea
12 August 2026
Today in Brief
Asia-Pacific markets traded mixed, with South Korea's Kospi jumping over 3% and Japan's Nikkei 225 adding 0.16%, while Australia's S&P/ASX 200 declined 0.58%, Hong Kong's Hang Seng fell 0.98% and mainland China's CSI 300 rose 0.28%; in the U.S., Super Micro Computer shares rallied more than 7% on rosy guidance and CoreWeave surged 14% on strong quarterly results. The S&P 500 fell on Tuesday for a second straight session, losing 0.32% to close at 7,728.20, while the Nasdaq Composite dropped 0.60% to 26,445.45 and the Dow shed 184.13 points, or 0.34%, to 53,791.85, as communication services led losses with Alphabet down 3.8% and AppLovin down nearly 6% amid faltering hopes for a Strait of Hormuz reopening. Gold rose toward $4,400 an ounce on Wednesday, recouping the previous session's losses ahead of key US inflation data, while crude oil climbed toward $84 per barrel, rising for a fifth consecutive session as investors weighed mixed signals on a potential US-Iran deal.
In other news: Iran-backed Houthi rebels killed six people aboard a cargo ship in the Bab el-Mandeb Strait, the first Red Sea shipping fatalities in more than a year, while U.S. forces struck a container ship in the Gulf of Oman; Pakistan's defence minister signalled Washington and Tehran are close to "some sort of arrangement" over the Strait of Hormuz; President Trump said New York City's pied-à-terre tax "must be stopped" and is exploring a federal block; Trump confirmed he spoke recently with Fed Chairman Kevin Warsh but denied having regular calls with him; CoreWeave shares jumped 14% as revenue doubled on accelerating AI infrastructure demand; Meta said it will open source its most powerful AI model in a swipe at OpenAI and Anthropic; TCS and other Tata Group shares dropped on a report that Tata Sons chairman N Chandrasekaran has resigned; and Supermicro topped fiscal fourth-quarter profit estimates, with shares rising 8% in after-hours trading.
In Asia, markets traded mixed
In Asia, markets traded mixed. South Korea's Kospi jumped over 3%, while Japan's Nikkei 225 added 0.16%. Australia's benchmark S&P/ASX 200 declined 0.58%. Hong Kong's Hang Seng Index fell 0.98% while mainland China's CSI 300 rose 0.28%. In the U.S., Super Micro Computer shares rallied more than 7% after the data centre infrastructure company issued rosy guidance for first quarter earnings and revenue. CoreWeave shares surged 14% after second quarter adjusted operating income margin of 5% exceeded expectations.
S&P 500 posts back-to-back losses, weighed down by tech sell-off and Iran uncertainty
The S&P 500 fell on Tuesday, bogged down by key technology stocks, as hopes among investors that the the Strait of Hormuz would reopen faltered, exacerbating lingering doubts that the U.S. and Iran can reach a broader resolution to the conflict. The broad market index lost 0.32%, dropping for a second day and closing at 7,728.20. The Nasdaq Composite fell 0.60% to 26,445.45. The Dow Jones Industrial Average shed 184.13 points, or 0.34%, to end at 53,791.85. Communication services was the leading S&P 500 laggard, falling more than 2% as Alphabet and AppLovin shares dropped 3.8% and nearly 6%, respectively.
Gold rose toward $4,400 an ounce on Wednesday, recouping losses from the previous session
Gold rose toward $4,400 an ounce on Wednesday, recouping losses from the previous session as investors prepared for key US inflation data that could provide fresh clues on the Federal Reserve's policy outlook. Markets remain divided over whether the Fed will raise rates by 25 basis points in September after keeping them unchanged in July, with rising oil prices reinforcing a hawkish bias. Meanwhile, traders assessed the prospects of a US-Iran deal to reopen the Strait of Hormuz amid shifting signals. Pakistan's defence minister said Washington and Tehran are "close to some sort of arrangement" over the strait, while reports indicated that talks between Iran and Oman have reached an advanced stage. Elsewhere, gold continued to draw support from investment demand and central bank purchases, particularly from China.
Crude oil climbed toward $84 per barrel on Wednesday, rising for the fifth consecutive sessions
Crude oil climbed toward $84 per barrel on Wednesday, rising for the fifth consecutive sessions as investors assessed mixed signals surrounding a potential deal between the US and Iran. Pakistan's defence minister said Washington and Tehran are "close to some sort of arrangement" regarding the Strait of Hormuz, while reports indicated that talks between Iran and Oman have entered an advanced stage. However, the positive developments followed a tougher stance from President Donald Trump this week, who said Tehran should pay reparations for those killed in attacks linked to the Islamic Republic. His remarks came in response to a series of demands issued by Iran over the weekend, including war compensation for the US and Israeli military operation in the country.
Houthi attack kills six in first fatalities in Red Sea in over a year; U.S. strikes containership
Iran-backed Houthi rebels killed six people aboard a cargo ship in the Bab el-Mandeb Strait on Tuesday, the first reported fatalities from attacks targeting Red Sea shipping in more than a year. Within hours, U.S. forces said they had fired missiles at a container ship that allegedly attempted to breach Washington's blockade of Iranian ports in the Gulf of Oman. The twin incidents illustrate how the war, stretched into its sixth month, is inflicting a widening toll on two of the world's most critical shipping lanes, even as diplomats signal progress towards reopening the Strait of Hormuz.
Pakistan signals progress on U.S.-Iran deal as Washington and Tehran trade reparation demands
The U.S. and Iran are close to "some sort of arrangement" over the Strait of Hormuz, a senior Pakistani minister said Tuesday, offering another glimmer of hope for a deal even as the warring powers appear to be hardening their negotiating stances. Pakistan's defence minister, Khawaja Asif, told reporters that "things are shaping up again in favour of a peace arrangement or a deal," per Bloomberg News. "The signals in the last two to three days are that we are close to some sort of an arrangement," he added, without providing further details. The Pakistani official's comments came after a Qatari Foreign Ministry spokesperson told Al Jazeera that talks between Iran and Oman about opening a shipping channel through the Strait of Hormuz were at a "critical juncture."
Trump says NYC pied-à-terre tax 'must be stopped,' eyes federal block
President Donald Trump on Tuesday decried New York City's pied-à-terre tax and said he is exploring whether the federal government "has any legal right to avert this disaster, before it is too late." The tax on nonprimary residences of wealthy owners "doesn't work in America, and must be stopped, NOW!" Trump wrote in a Truth Social post. Trump's vow to seek federal intervention against the tax, which was pushed by Mayor Zohran Mamdani and passed by the New York State legislature in late May, came one day after a Staten Island judge temporarily blocked the new policy. New York City government quickly filed a motion to seek an appeal of that order, placing the judge's order on hold.
Trump says he spoke recently to Fed Chairman Warsh, denies regular calls
President Donald Trump spoke recently to Federal Reserve Chairman Kevin Warsh, the president said Monday. The Wall Street Journal reported Wednesday that Trump and Warsh had spoken repeatedly since Warsh became chairman of the central bank in May. Trump said that story was wrong, but he confirmed that he and Warsh had been in touch "one time, briefly, a few days ago." The report came amid concerns about Fed independence from Trump, who has broken with most of his predecessors to weigh in on interest rate policy. Warsh has said he is happy to hear from the president or anyone else on interest rates but will make up his own mind about where rates should go. The Fed didn't respond to a request for comment.
CoreWeave stock pops 14% as revenue doubles on accelerating AI infrastructure demand
CoreWeave shares jumped 14% in extended trading on Tuesday after the AI infrastructure provider reported results than topped Wall Street expectations. Revenue climbed 112% during the quarter from a year earlier, CoreWeave said in a statement. Net loss of $626 million increased from $290 million, or 60 cents per share, a year ago. The company's revenue backlog now stands at $104 billion, a figure that excludes over $25 billion in new commitments from the third quarter, and it boasted 1.5 gigawatts of active power. With respect to guidance, management called for $3.4 billion to $3.6 billion in third-quarter revenue, which would imply 158% growth at the middle of the range. Analysts polled by LSEG were looking for $3.43 billion.
Meta to open source its most powerful AI model as it takes swipe at OpenAI, Anthropic
Meta said it would open source its most powerful AI models and launch new ones designed for consumer devices, as it looks to rival leading labs like OpenAI and Anthropic. In an Instagram video posted Monday, CEO Mark Zuckerberg said that the company would open the weights for its latest AI model Muse Spark 1.2, meaning it can be downloaded and used by the public. Weights refer to the calculations and rules that determine how the AI works and behaves. Zuckerberg also said the company will release a new family of open-source models called Muse Glimmer, designed to run on a laptop. Shares of Meta were up 2.1% in premarket trade on Monday. They are down around 10% so far this year, as investors scrutinize Meta's spending plans and whether it can compete with major AI leaders. Zuckerberg is looking to reassure investors that the Meta Superintelligence Labs, formed last year, is making progress and the capital expenditure, forecast to be up to $145 billion this year, will pay o
TCS, Tata Group shares drop on report of chairman exit
Tata Consultancy Services shares fell 4.7% on Wednesday after Reuters reported Tata Sons chairman N Chandrasekaran resigned. Other Tata Group companies also declined. Tata Steel dropped 1.2%, Tata Motors Passenger Vehicles fell 3.3%, and Tata Consumer decreased 1.6%. Reuters reported that Chandrasekaran has resigned, but will complete his current term at the $400 billion conglomerate.
Supermicro tops Q4 profit estimates, shares rise 8% in after hours
Super Micro Computer beat Wall Street's profit expectations in its fiscal fourth quarter, even as revenue came in below forecasts, and the stock rose after hours as investors focused on a sharp margin rebound and a strong outlook for fiscal 2027. The company reported non-GAAP earnings of $1.70 a share on revenue of $11.12 billion, compared with analysts' estimates for $0.71 a share and $11.73 billion in sales. Shares climbed 6.42% after hours to $33.63, after closing the regular session at $31.68. Supermicro's quarterly earnings beat estimates by a wide margin, helped by a sharp improvement in gross margin. Revenue missed forecasts, but the company said demand remained strong, with more than $60 billion in new orders in the quarter. Full-year revenue jumped 78% to $39.1 billion, underscoring the company's rapid expansion in AI infrastructure. Management guided fiscal 2027 revenue to $65 billion to $72 billion, signalling another year of strong growth.
