Daily News 4th Aug 26
Daily News
Dow Surges Nearly 700 Points to Record Close as Amazon Tops $3 Trillion Market Cap; Asia-Pacific Markets Open Higher Led by South Korea; Gold Steadies Near $4,050 as Trump Insists Iran Talks Are Underway Despite Tehran's Denials
04 August 2026
Today in Brief
Asia-Pacific markets opened higher on Tuesday, with the Kospi up 1.46% and the Kosdaq rising 3%, Japan's Nikkei 225 up 0.7%, and Australia's S&P/ASX 200 0.15% higher, extending Monday's Wall Street rally that saw the Dow jump 693.38 points, or 1.32%, to a record 53,178.41, the S&P 500 gain 1.48% to 7,600.50, and the Nasdaq Composite advance 2.13% to 25,913.90, driven by Big Tech as Amazon eclipsed $3 trillion in market cap and Meta Platforms surged 6%. Gold steadied around $4,050 an ounce on Tuesday as investors tracked US-Iran talks for clues on a potential Hormuz reopening, while crude oil rose to around $81 a barrel but held most of the prior session's decline; markets are now pricing in about a 65% chance of a 25-basis-point Fed rate hike in September.
In other news: India will raise up to $3.3 billion by selling a stake of up to 6.5% in state-owned insurer LIC at a 10% discount; President Trump insisted in a Truth Social post that Iran talks are underway despite Tehran calling the claim false, branding the Islamic Republic's leaders "unbelievably duplicitous"; the U.S. Treasury raised its third-quarter borrowing estimate to $739 billion; New York Fed President John Williams said inflation should keep easing toward the 2% goal by 2028 but that the Fed will hike if it doesn't; HSBC's second-quarter pretax profit of $10.1 billion beat estimates; Palantir shares jumped 12% after commercial revenue nearly doubled; Eli Lilly will offer early access to its experimental obesity drug retatrutide ahead of FDA approval; and Apple launched a new legal challenge against a UK demand for backdoor access to encrypted user data.
Asia-Pacific markets opened higher on Tuesday, with South Korean equities leading gains in the region
Asia-Pacific markets opened higher on Tuesday, with South Korean equities leading gains in the region. The Kospi was up 1.46%, while the small-cap Kosdaq rose 3%. Japan's Nikkei 225 was up 0.7%, while the Topix opened marginally above the flatline. Australia's benchmark S&P/ASX 200 was 0.15% higher. The major stock averages surged Monday, with the Dow closing at a record high, as Amazon eclipsed $3 trillion in market cap for the first time. Nvidia shares also ripped higher along with Meta Platforms. Google parent Alphabet and Microsoft also popped during the day.
Dow surges nearly 700 points for record close as Big Tech stocks rise, oil prices slide
The Dow Jones Industrial Average surged to a record close on Monday as shares of major tech companies popped on the first day of August trading, while oil prices declined after President Donald Trump called off planned strikes against Iran. The Dow jumped 693.38 points or 1.32%, to end the day at 53,178.41. The S&P 500 gained 1.48% to end at 7,600.50. The broad-market index is about 0.3% away from the all-time high it reached in early June. The Nasdaq Composite advanced 2.13% to 25,913.90. The communications services and tech sectors were the driving forces behind the market's advance. Meta Platforms surged 6% on the day.
Gold steadied around $4,050 an ounce on Tuesday, trading in a narrow range
Gold steadied around $4,050 an ounce on Tuesday, trading in a narrow range as investors tracked developments in US-Iran talks for clues on the potential reopening of the Strait of Hormuz, while continuing to evaluate the outlook for US Federal Reserve monetary policy. President Donald Trump said his offer of talks represents Tehran's final opportunity to reach a deal and expressed confidence that Hormuz will reopen soon. Iran, however, denied that any direct talks with the US are underway, though it said discussions with Oman aimed at increasing shipping through the strait are making progress. Meanwhile, markets are pricing in about a 65% chance of a 25-basis point Fed rate hike in September after the central bank left interest rates unchanged in July.
Crude oil rose to around $81 per barrel on Tuesday, but held most of the decline from the previous session
Crude oil rose to around $81 per barrel on Tuesday, but held most of the decline from the previous session as investors monitored renewed US-Iran negotiations for signs the two sides could reach an agreement on fully reopening the Strait of Hormuz. President Donald Trump said his proposal for talks represents Tehran's final opportunity to strike a deal and expressed confidence that Hormuz will reopen soon. Iran, however, denied that any direct talks with the US are underway, though it said discussions with Oman aimed at increasing shipping through the strait are progressing. Elsewhere, Turkey and Iraq extended a key oil pipeline agreement by another year, bolstering alternative export routes, while Kazakhstan resumed crude flows through the Caspian Pipeline Consortium following a brief disruption.
India to raise up to $3.3 billion by selling stake in country's largest life insurer at 10% discount
The Indian government will sell up to a 6.5% stake in state-owned Life Insurance Corporation of India at a 10% discount to its Monday closing price, as it moves to comply with regulatory requirements. The stake sale will fetch the government up to 314 billion rupees ($3.3 billion) through the offer, which consists of a base size of a 2.5% stake and an option to sell an additional 4% in the country's largest insurance company, LIC said in a stock exchange filing on Monday. The offer for sale, priced at 382 rupees per share, will open on Tuesday and end on Wednesday. The government of India owns a 96.5% stake in LIC, which it needs to reduce to 75% by 2032 to meet the minimum public shareholding requirements. LIC is the leading life insurance company in India with over 56% market share based on premium income. As of the end of March 2026, the firm had assets under management of 57.29 trillion rupees (about $600 billion).
Trump insists Iran talks are underway despite Tehran's 'duplicitous' denials
President Donald Trump on Monday insisted talks between the U.S. and Iran are ongoing after Tehran undermined him by saying it had no plans for direct negotiations with Washington. Trump, in an angry Truth Social post, called the Islamic republic's leaders "unbelievably duplicitous" and accused them of lying about peace talks that are underway "whether Iran wants to admit it or not." He also once again asserted the U.S. is in full control of the Strait of Hormuz, even though ship traffic through the economically vital waterway remains stuck at a fraction of its prewar averages. "Nothing gets through to Iran, unless we want it to, and nothing will get through, unless a Deal, or Total Surrender, is accomplished," Trump claimed in the post.
US Treasury raises third-quarter borrowing estimate to $739 billion
The U.S. Treasury said on Monday it expects to borrow $739 billion in the third quarter, $68 billion more than it projected in May, as lower projected cash flows were only partly offset by a higher-than-assumed starting cash balance. Stripping out the benefit of that larger starting cushion, the increase in borrowing needs is $87 billion above the May estimate. The department's quarterly refunding statement assumes a cash balance of $950 billion at the end of September. For the fourth quarter, Treasury projected borrowing of $628 billion, based on a year-end cash balance of $850 billion. The department also said it borrowed $190 billion in the second quarter, ending June with a cash balance of $919 billion.
Fed's Williams expects inflation to ease, says Fed will act if it doesn't
Federal Reserve Bank of New York President John Williams said he remained optimistic that inflation pressures are on track to ease gradually, but if they don't the U.S. central bank will not hesitate to respond with rate hikes to ensure price pressures return to target. If energy prices and trade tariffs have peaked and the economy remains on a solid footing, "I think that some of the big drivers that pushed up inflation" over the last year and half or so "will not be at play as much, and then some of the disinflationary forces that we've been seeing" should reassert themselves, Williams said in an interview with Reuters on Friday. Williams said he is focused on what the core inflation data shows over the next several months, and whether that is consistent with a run rate of inflation moving toward a sustained 2% goal by 2028.
HSBC pretax profit beats estimates, boosted by higher net interest income and fees
HSBC reported second-quarter pre-tax profit of $10.1 billion on Tuesday, exceeding analysts' estimates on the back of stronger growth in banking net interest income and other higher fees. Revenue at Europe's largest lender gained 16% year-on-year, helped by a one-off gain of $1.3 billion from notable items. Second-quarter profit before tax rose 60% year-on-year, also helped by a net favourable impact from notable items of $2.6 billion, the company said. Notable items included costs associated with a $200 million restructuring, HSBC said in a statement. HSBC's net interest income rose 9% in the second quarter, year on year, to $9.29 billion. Operating expenses fell 2%, owing to lower restructuring costs. HSBC maintained its targeted return on tangible equity — a measure of profitability — of 17%. Annualized RoTE in the reported quarter, excluding items, was 19.1%.
Palantir soars 12% on blowout quarter, with U.S. commercial revenue soaring nearly 150%
Palantir topped second-quarter earnings estimates on Monday and said commercial revenue more than doubled from a year ago. The stock surged 12% after the numbers were released. Revenue climbed 93% from about $1 billion a year ago. Palantir reported net income of $1.07 billion, or 41 cents per share, compared to about $329 million, or 13 cents per share in the year-ago quarter. "Forget consensus," CEO Alex Karp told CNBC's Seema Mody in an exclusive interview. "To my knowledge, no businesses at our scale has even grown half this much." Palantir's U.S. government revenue grew 90% from a year ago to $809 million. The company is widely known for selling its software to the U.S. government and military, but its commercial revenue has accelerated.
Eli Lilly to offer early access to next-gen obesity drug to some patients
Eli Lilly said on Monday it would allow a limited number of patients to have early access to its experimental obesity drug, retatrutide, before its U.S. FDA approval. "For a limited number of patients who meet specific medical criteria and cannot enroll in a clinical trial, we believe it is medically appropriate to make authentic retatrutide available before FDA approval, consistent with FDA's guidance," a company spokesperson said. The spokesperson added that Lilly has built an expanded access program "that does that and are actively reviewing requests from health care providers." Eligible patients must be aged 18 or older, have refractory obesity despite tolerating the highest approved dose of obesity therapy, and have at least two serious or life-threatening obesity-related complications for which they are receiving care.
Apple launches new legal challenge to UK attempt to access encrypted user data
Apple has launched a new legal challenge against the British government's latest attempt to create a so-called backdoor to access encrypted customer data, the Financial Times reported on Monday. The report said Apple last month lodged a legal complaint at the Investigatory Powers Tribunal — Britain's independent judicial body — over the Interior Ministry's demand that Apple allow it access to encrypted cloud backups of data belonging to British users. Britain dropped last year a previous mandate for such a backdoor that would have allowed access to British and U.S. customers' data following months of negotiations with the U.S. President Donald Trump's administration.
