Market Update
Wall Street Rally Extended Gains Amid Improving Sentiment and Solid Earnings
Barry Adams
05 Aug, 2026
New York City
U.S. stocks advanced on Wednesday and extended gains of the previous three sessions.
The S&P 500 Index increased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.4% as investors reviewed the latest batch of earnings.
In Tuesday's trading, the S&P500 index increased 1.8%, and the tech-focused Nasdaq Composite advanced 2.6% as global risk sentiment improved.
The West Texas Intermediate crude oil price increased 0.3% to $76 a barrel, and the Brent crude oil price advanced 0.7% to $79.81 a barrel amid renewed worries of violence in the Red Sea.
Investor sentiment stayed positive following the release of earnings from Arista Networks, AMD, SpaceX, Eli Lilly, and Merck.
SpaceX reported better-than-expected revenue in the second quarter, and losses narrowed, but the massive surge in artificial intelligence infrastructure investment rattled investors.
U.S. private businesses expanded payrolls at a slower pace in July, according to the monthly report released by ADP.
Private businesses added 44,000 net new jobs in July, following a downwardly revised 95,000 increase in June. The service sector added 47,000, the manufacturing sector expanded by 2,000, the construction sector added 1,000, and the mining sector shed 6,000.
U.S. Movers
Arista Networks increased 12.6% to $214.52 after the data networking equipment company reported better-than-expected second quarter results.
Total revenue increased 38% to $3.3 billion from $2.0 billion, net income advanced to $1.2 billion from $888 million, and diluted earnings per share rose to 95 cents from 70 cents a year ago.
The company guided third quarter revenue of $3.3 billion, adjusted operating margin between 48% and 49%, and adjusted diluted earnings per share to range between $1.06 and $1.08.
AMD declined 8.5% to $474.45 after the advanced semiconductor company's second quarter results fell short of market expectations.
Revenue soared 50% to $11.5 billion from $7.7 billion, net income surged 163% to $2.3 billion from $872 million, and diluted earnings per share increased 156% to $1.66 from 48 cents a year ago.
The continued investment in data centers supported the business momentum in the latest quarter.
Data center segment revenue soared 107% to $6.7 billion, client and gaming segment revenue increased 6% to $3.8 billion, and embedded segment revenue jumped 19% to $977 million.
Chief Financial Officer Jean Hu highlighted that data center growth powered the performance, representing 58% of total revenue, and projected further sales acceleration in the second half of the year.
AMD expects third-quarter 2026 revenue to be approximately $13 billion, give or take $300 million. While the midpoint beats Wall Street's average consensus of roughly $12.5 billion, some investor expectations had priced in even higher outcomes, leading to a muted market reaction.
The midpoint of the revenue range represents a 41% increase in revenue from a year ago and a sequential increase of 13% and a non-GAAP gross margin of 56%.
SpaceX decreased 10.8% to $111.76 after the recently listed rocket launch and connectivity company released its second quarter results.
The stock plunged after the massive surge in capital expenditures to $18.4 billion from $2.8 billion, driven by AI infrastructure investments, rattled investors.
Total revenue jumped to $7.8 billion from $4.1 billion, net loss shrank to $541 million from $1.0 billion, and diluted loss per share eased to 9 cents from 34 cents a year ago.
Japan's Real Wage Growth Increased for Sixth Consecutive Month In June Driven by Higher Summer Bonuses
Akira Ito
05 Aug, 2026
Tokyo
Japan's indexes rebounded for the second consecutive session amid improving global risk sentiment toward the AI trade.
The Nikkei 225 Stock Average increased more than 3%, the broader TOPIX advanced 1.7%, and the Japanese yen weakened to 157.45 against the U.S. dollar.
AI and semiconductor stocks advanced in Tokyo, tracking gains in overnight trading in New York as investors increased exposure to high-flying hyperscalers and tech stocks.
Japan's Real Wage Growth Streak Extends to Sixth Month In June
Japan's real wages in June increased for the sixth consecutive month in June, reflecting higher government bonuses, according to the Ministry of Health, Labor, and Welfare.
Nominal wages per worker, including base pay and bonuses, increased 3.4% to 531,677 yen, marking the fifth consecutive month exceeding 3%.
After adjusting for inflation, real wages rose 1.6%, matching the rate in the previous month as June's inflation accelerated to 1.9% from 1.7% in May.
The advance in nominal wage was driven by a 3.5% increase in special earnings, mainly bonuses, to 232,455 yen, as labor organizations during "Shunto negotiations" won record increases.
The Japan Business Federation, the association of large businesses, said on Tuesday it agreed to an average wage increase of 5.37%, exceeding 5% for the third consecutive year.
In addition, large companies raised summer bonuses by 1.88%, exceeding one million yen for the first time since recordkeeping began in 1981.
For now, the Bank of Japan has held its short-term rates at 1.0% at the end of its policy meeting last month, and Governor Kazuo Ueda signaled additional rate hikes, citing the yen's weakness and higher cost of imported energy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 3.1% to 65,976.88, and the broader TOPIX advanced 1.7% to 4,029.44.
Semiconductor equipment makers led the gainers in Tokyo amid sustained enthusiasm over the AI trade.
Tokyo Electron increased 3.5% to ¥58,690.0, Advantest Corp. gained 8.1% to ¥33,530.0, and Kioxia Holdings Corp. jumped 6% to ¥55,200.0.
Nippon Yusen KK decreased 4.3% to ¥5,764.0, Mitsui OSK Lines dropped 1.9% to ¥5,938.0, and Kawasaki Kisen Kaisha Ltd. eased 6% to ¥2,691.50.
Japan's Real Wage Growth Increased for Sixth Consecutive Month In June Driven by Higher Summer Bonuses
Akira Ito
05 Aug, 2026
Tokyo
Japan's indexes rebounded for the second consecutive session amid improving global risk sentiment toward the AI trade.
The Nikkei 225 Stock Average increased more than 3%, the broader TOPIX advanced 1.7%, and the Japanese yen weakened to 157.45 against the U.S. dollar.
AI and semiconductor stocks advanced in Tokyo, tracking gains in overnight trading in New York as investors increased exposure to high-flying hyperscalers and tech stocks.
Japan's Real Wage Growth Streak Extends to Sixth Month In June
Japan's real wages in June increased for the sixth consecutive month in June, reflecting higher government bonuses, according to the Ministry of Health, Labor, and Welfare.
Nominal wages per worker, including base pay and bonuses, increased 3.4% to 531,677 yen, marking the fifth consecutive month exceeding 3%.
After adjusting for inflation, real wages rose 1.6%, matching the rate in the previous month as June's inflation accelerated to 1.9% from 1.7% in May.
The advance in nominal wage was driven by a 3.5% increase in special earnings, mainly bonuses, to 232,455 yen, as labor organizations during "Shunto negotiations" won record increases.
The Japan Business Federation, the association of large businesses, said on Tuesday it agreed to an average wage increase of 5.37%, exceeding 5% for the third consecutive year.
In addition, large companies raised summer bonuses by 1.88%, exceeding one million yen for the first time since recordkeeping began in 1981.
For now, the Bank of Japan has held its short-term rates at 1.0% at the end of its policy meeting last month, and Governor Kazuo Ueda signaled additional rate hikes, citing the yen's weakness and higher cost of imported energy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 3.1% to 65,976.88, and the broader TOPIX advanced 1.7% to 4,029.44.
Semiconductor equipment makers led the gainers in Tokyo amid sustained enthusiasm over the AI trade.
Tokyo Electron increased 3.5% to ¥58,690.0, Advantest Corp. gained 8.1% to ¥33,530.0, and Kioxia Holdings Corp. jumped 6% to ¥55,200.0.
Nippon Yusen KK decreased 4.3% to ¥5,764.0, Mitsui OSK Lines dropped 1.9% to ¥5,938.0, and Kawasaki Kisen Kaisha Ltd. eased 6% to ¥2,691.50.
Japan's Real Wage Growth Increased for Sixth Consecutive Month Driven by Higher Summer Bonuses
Akira Ito
05 Aug, 2026
Tokyo
Japan's indexes rebounded for the second consecutive session amid improving global risk sentiment toward the AI trade.
The Nikkei 225 Stock Average increased more than 3%, the broader TOPIX advanced 1.7%, and the Japanese yen weakened to 157.45 against the U.S. dollar.
AI and semiconductor stocks advanced in Tokyo, tracking gains in overnight trading in New York as investors increased exposure to high-flying hyperscalers and tech stocks.
Japan's Real Wage Growth Streak Extends to Sixth Month In June
Japan's real wages in June increased for the sixth consecutive month in June, reflecting higher government bonuses, according to the Ministry of Health, Labor, and Welfare.
Nominal wages per worker, including base pay and bonuses, increased 3.4% to 531,677 yen, marking the fifth consecutive month exceeding 3%.
After adjusting for inflation, real wages rose 1.6%, matching the rate in the previous month as June's inflation accelerated to 1.9% from 1.7% in May.
The advance in nominal wage was driven by a 3.5% increase in special earnings, mainly bonuses, to 232,455 yen, as labor organizations during "Shunto negotiations" won record increases.
The Japan Business Federation, the association of large businesses, said on Tuesday it agreed to an average wage increase of 5.37%, exceeding 5% for the third consecutive year.
In addition, large companies raised summer bonuses by 1.88%, exceeding one million yen for the first time since recordkeeping began in 1981.
For now, the Bank of Japan has held its short-term rates at 1.0% at the end of its policy meeting last month, and Governor Kazuo Ueda signaled additional rate hikes, citing the yen's weakness and higher cost of imported energy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 3.1% to 65,976.88, and the broader TOPIX advanced 1.7% to 4,029.44.
Semiconductor equipment makers led the gainers in Tokyo amid sustained enthusiasm over the AI trade.
Tokyo Electron increased 3.5% to ¥58,690.0, Advantest Corp. gained 8.1% to ¥33,530.0, and Kioxia Holdings Corp. jumped 6% to ¥55,200.0.
Nippon Yusen KK decreased 4.3% to ¥5,764.0, Mitsui OSK Lines dropped 1.9% to ¥5,938.0, and Kawasaki Kisen Kaisha Ltd. eased 6% to ¥2,691.50.
China and Asian Markets Extended Weekly Gains Powered by AI Trade
Li Chen
05 Aug, 2026
Hong Kong
China's stocks advanced on Wednesday, and investors reacted to international events amid uncertain geopolitical tensions.
The Hang Seng Index increased 0.3%, and the mainland-focused CSI 300 Index advanced 1% as investors surmised cooling tensions in the Middle East may improve energy shipments through the Strait of Hormuz.
The Brent crude oil price decreased 1.2% to $78.44 a barrel as the U.S. and Iran signaled a willingness to accelerate diplomatic efforts and avoid the immediate repeat of July's string of attacks.
In overnight trading in New York, the S&P 500 Index jumped 1.8% and the tech-focused Nasdaq Composite advanced 2.6% amid improving global risk sentiment and strong earnings.
Across Asia, benchmark indexes in Tokyo jumped 3.3% and in Seoul advanced 4.4%, driven by a surge in computer memory makers and semiconductor equipment makers.
In Mumbai, benchmark indexes gained 0.4% and the rupee held stable, following the two-day decline in energy prices, and in Sydney, it edged up 0.3%.
On the economic front, China's service sector growth slowed in July, expanding at the slowest pace since September 2024.
The RatingDog China General Services PMI dropped to 50.4 from 54.1 in June, as input and output prices rose amid higher operating expenses and insurance premiums, said S&P Global.
China Indexes and Stocks
The Hang Seng Index increased 0.3% to 25,916.61, and the mainland-focused CSI 300 Index advanced 1% to 4,646.25.
AI- and semiconductor-linked stocks retained an upward bias in Hong Kong and Shanghai amid expectations of sustained investment in artificial intelligence infrastructure.
SMIC advanced 4.3% to HK $68.45, Zhongji Innolight declined 7.6% to ¥943.86, and Eoptolink Technology decreased 5.7% to ¥422.43.
MiniMax Group soared 11.8% to HK $257.40, Z.AI Co. Ltd. increased 7.5% to HK $1,086.00, and CXMT Corp. fell 0.6% to ¥54.70.
China and Asian Markets Extended Weekly Gains Powered by AI Trade
Li Chen
05 Aug, 2026
Hong Kong
China's stocks advanced on Wednesday, and investors reacted to international events amid uncertain geopolitical tensions.
The Hang Seng Index increased 0.3%, and the mainland-focused CSI 300 Index advanced 1% as investors surmised cooling tensions in the Middle East may improve energy shipments through the Strait of Hormuz.
The Brent crude oil price decreased 1.2% to $78.44 a barrel as the U.S. and Iran signaled a willingness to accelerate diplomatic efforts and avoid the immediate repeat of July's string of attacks.
In overnight trading in New York, the S&P 500 Index jumped 1.8% and the tech-focused Nasdaq Composite advanced 2.6% amid improving global risk sentiment and strong earnings.
Across Asia, benchmark indexes in Tokyo jumped 3.3% and in Seoul advanced 4.4%, driven by a surge in computer memory makers and semiconductor equipment makers.
In Mumbai, benchmark indexes gained 0.4% and the rupee held stable, following the two-day decline in energy prices, and in Sydney, it edged up 0.3%.
China Indexes and Stocks
The Hang Seng Index increased 0.3% to 25,916.61, and the mainland-focused CSI 300 Index advanced 1% to 4,646.25.
AI- and semiconductor-linked stocks retained an upward bias in Hong Kong and Shanghai amid expectations of sustained investment in artificial intelligence infrastructure.
SMIC advanced 4.3% to HK $68.45, Zhongji Innolight declined 7.6% to ¥943.86, and Eoptolink Technology decreased 5.7% to ¥422.43.
MiniMax Group soared 11.8% to HK $257.40, Z.AI Co. Ltd. increased 7.5% to HK $1,086.00, and CXMT Corp. fell 0.6% to ¥54.70.