Market Update
Global Bond Market Rout and Resurgent Oil Prices Weighed on Investor Sentiment
Barry Adams
19 Aug, 2026
New York City
U.S. indexes traded around the flatline on Wednesday, after the benchmark averages declined for the previous three consecutive sessions.
The S&P 500 Index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.3% as global bond routs and higher energy prices weighed on investor sentiment.
Broader indexes remained resilient despite the resurgent global bond yields, as investors continued to focus on earnings growth and overlook rising interest rates.
The yield on 30-year U.S. Treasury notes jumped to a new 19-year high on Tuesday, and Japanese government bonds surged to a three-decade high.
Bond yields in France and Germany advanced to multi-year highs amid rising fiscal imbalance and building inflationary pressures rooted in energy shock.
Despite higher nominal consumer prices and bond yields, investors are betting that continued economic growth and strong earnings will support the stock market.
Geopolitical tensions remained high in the Middle East, as Iran and the U.S. sent conflicting signals over the Strait of Hormuz.
Oil tanker traffic through the narrow passageway fell sharply earlier in the week after the ceasefire between the U.S. and Iran expired. Moreover, Iran is said to be preparing for a full-blown assault on the U.S. military targets in the UAE, Qatar, Saudi Arabia, and Bahrain.
Moreover, military analysts are speculating that the Islamic Republic is capable of reaching the U.S. military installations as far as the U.K., Germany, and Italy.
The West Texas crude oil price per barrel increased 1% to $85.95, and the Brent crude oil edged up 1.2% to $92.03 amid the growing prospects of prolonged disruptions in the Middle East.
U.S. Movers
SK Hynix increased 4.5% to $163.16 after the South Korea-based computer memory chipmaker vowed to distribute 50% of free cash flow generated between 2025 and 2027 to shareholders.
The company said it plans to buy back and cancel 40 trillion won, or $28.61 billion, worth of treasury shares, and pay quarterly dividends to shareholders.
Toll Brothers increased 0.4% to $143.43 after the home builder reported its results for the fiscal third quarter ending in July.
Revenue decreased to $2.65 billion from $2.94 billion, net income declined to $280.1 million from $369.6 million, and diluted earnings per share eased to $2.97 from $3.73 a year ago.
In the quarter, the company delivered 2,662 homes at an average price of $996,400.
Order backlog at the end of the quarter eased to $6.24 billion and 5,312 units, compared to $6.38 billion and 5,492 units.
The gross margin for home sales in the quarter eased to 23.9% compared to 25.6% a year ago, as higher raw material and labor costs weighed.
Despite the rising mortgage rates and macroeconomic headwinds, the company continues to benefit from a relative stability in the luxury market.
Quarterly cancellations as a percentage of backlog at the start of the quarter eased to 2.6% from 3.2% a year ago.
The company repurchased approximately 1.4 million shares at an average price of $148.63 per share for a total purchase price of $206.8 million.
Toll Brothers lifted its fiscal fourth-quarter unit sales outlook to between 3,450 and 3,550 and, for the full fiscal year, between 10,500 and 10,600.
The company estimated the average home sale price for the fourth quarter and full year to average approximately one million dollars.
Global Bond Market Rout and Re Oil Prices Weighed on Investor Sentiment
Barry Adams
19 Aug, 2026
New York City
U.S. indexes traded around the flatline on Wednesday, after the benchmark averages declined for the previous three consecutive sessions.
The S&P 500 Index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.3% as global bond routs and higher energy prices weighed on investor sentiment.
Broader indexes remained resilient despite the resurgent global bond yields, as investors continued to focus on earnings growth and overlook rising interest rates.
The yield on 30-year U.S. Treasury notes jumped to a new 19-year high on Tuesday, and Japanese government bonds surged to a three-decade high.
Bond yields in France and Germany advanced to multi-year highs amid rising fiscal imbalance and building inflationary pressures rooted in energy shock.
Despite higher nominal consumer prices and bond yields, investors are betting that continued economic growth and strong earnings will support the stock market.
Geopolitical tensions remained high in the Middle East, as Iran and the U.S. sent conflicting signals over the Strait of Hormuz.
Oil tanker traffic through the narrow passageway fell sharply earlier in the week after the ceasefire between the U.S. and Iran expired. Moreover, Iran is said to be preparing for a full-blown assault on the U.S. military targets in the UAE, Qatar, Saudi Arabia, and Bahrain.
Moreover, military analysts are speculating that the Islamic Republic is capable of reaching the U.S. military installations as far as the U.K., Germany, and Italy.
The West Texas crude oil price per barrel increased 1% to $85.95, and the Brent crude oil edged up 1.2% to $92.03 amid the growing prospects of prolonged disruptions in the Middle East.
U.S. Movers
SK Hynix increased 4.5% to $163.16 after the South Korea-based computer memory chipmaker vowed to distribute 50% of free cash flow generated between 2025 and 2027 to shareholders.
The company said it plans to buy back and cancel 40 trillion won, or $28.61 billion, worth of treasury shares, and pay quarterly dividends to shareholders.
Toll Brothers increased 0.4% to $143.43 after the home builder reported its results for the fiscal third quarter ending in July.
Revenue decreased to $2.65 billion from $2.94 billion, net income declined to $280.1 million from $369.6 million, and diluted earnings per share eased to $2.97 from $3.73 a year ago.
In the quarter, the company delivered 2,662 homes at an average price of $996,400.
Order backlog at the end of the quarter eased to $6.24 billion and 5,312 units, compared to $6.38 billion and 5,492 units.
The gross margin for home sales in the quarter eased to 23.9% compared to 25.6% a year ago, as higher raw material and labor costs weighed.
Despite the rising mortgage rates and macroeconomic headwinds, the company continues to benefit from a relative stability in the luxury market.
Quarterly cancellations as a percentage of backlog at the start of the quarter eased to 2.6% from 3.2% a year ago.
The company repurchased approximately 1.4 million shares at an average price of $148.63 per share for a total purchase price of $206.8 million.
Toll Brothers lifted its fiscal fourth-quarter unit sales outlook to between 3,450 and 3,550 and, for the full fiscal year, between 10,500 and 10,600.
The company estimated the average home sale price for the fourth quarter and full year to average approximately one million dollars.
Japan's Indexes Dropped 2% as Global Selloff In Semiconductor Stocks Intensified
Akira Ito
19 Aug, 2026
Tokyo
Japan's benchmark indexes declined for the second consecutive session on Wednesday, as the selloff in technology and semiconductor stocks intensified.
The Nikkei 225 Stock Average decreased 3%, and the broader TOPIX dropped 3.1% as local stocks tracked losses on Wall Street overnight.
The S&P 500 Index decreased 0.7%, and the tech-focused Nasdaq Composite declined 1.3%.
The Brent crude oil price per barrel rose 0.5% to $91.49, increasing the cost of imported energy for Japan. Higher crude oil prices put additional pressure on the yen and support domestic inflationary pressures.
The yen hovered at 159.31 against the U.S. dollar, driven by persistent downward pressure on the embattled currency.
The yield on 10-year Japanese government bonds traded at 2.89%, down from a three-decade high of 2.95% reached earlier in the week.
The Bank of Japan is likely to raise rates by 25 basis points at the end of its policy meeting on September 18.
Japan's core machinery orders jumped in June, reflecting broad-based recovery in business investment, noted a monthly report from the Cabinet Office.
Core machinery orders, which excludes volatile sectors such as ships and electric utilities, jumped 9.7% from the previous month to 1.06 trillion yen and shifted from a 12.4% decline in June.
Orders from manufacturers accelerated to 19.9% from a decline of 14.9%, while non-manufacturing orders growth slowed to 4.5% from 9.3% in the previous month, respectively.
On an annual basis, core machinery orders expanded 16.9% and reached a four-month high, swinging from May's 1.9% decrease.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 3% to 65,392.12, and the TOPIX dropped 3.1% to 4,011.66.
Japanese companies deeply integrated into the global AI supply chain traded down, tracking a worldwide sell-off.
Kioxia Holding Corp. dropped 11.5% to ¥50,710.0, Tokyo Electron decreased 3% to ¥54,670.0, Advantest Corp. fell 0.8% to ¥35,560.0, and Furukawa Electric plunged 12.6% to ¥3,815.0.
Japan's Indexes Dropped 2% as Global Selloff In Semiconductor Stocks Intensified
Akira Ito
19 Aug, 2026
Tokyo
Japan's benchmark indexes declined for the second consecutive session on Wednesday, as the selloff in technology and semiconductor stocks intensified.
The Nikkei 225 Stock Average decreased 3%, and the broader TOPIX dropped 3.1% as local stocks tracked losses on Wall Street overnight.
The S&P 500 Index decreased 0.7%, and the tech-focused Nasdaq Composite declined 1.3%.
The Brent crude oil price per barrel rose 0.5% to $91.49, increasing the cost of imported energy for Japan. Higher crude oil prices put additional pressure on the yen and support domestic inflationary pressures.
The yen hovered at 159.31 against the U.S. dollar, driven by persistent downward pressure on the embattled currency.
The yield on 10-year Japanese government bonds traded at 2.89%, down from a three-decade high of 2.95% reached earlier in the week.
The Bank of Japan is likely to raise rates by 25 basis points at the end of its policy meeting on September 18.
Japan's core machinery orders jumped in June, reflecting broad-based recovery in business investment, noted a monthly report from the Cabinet Office.
Core machinery orders, which excludes volatile sectors such as ships and electric utilities, jumped 9.7% from the previous month to 1.06 trillion yen and shifted from a 12.4% decline in June.
Orders from manufacturers accelerated to 19.9% from a decline of 14.9%, while non-manufacturing orders growth slowed to 4.5% from 9.3% in the previous month, respectively.
On an annual basis, core machinery orders expanded 16.9% and reached a four-month high, swinging from May's 1.9% decrease.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 3% to 65,392.12, and the TOPIX dropped 3.1% to 4,011.66.
Japanese companies deeply integrated into the global AI supply chain traded down, tracking a worldwide sell-off.
Kioxia Holding Corp. dropped 11.5% to ¥50,710.0, Tokyo Electron decreased 3% to ¥54,670.0, Advantest Corp. fell 0.8% to ¥35,560.0, and Furukawa Electric plunged 12.6% to ¥3,815.0.
Global Semiconductor Sell-off Dragged Down Indexes In China
Li Chen
19 Aug, 2026
Hong Kong
China's indexes faced significant challenges as a widespread selloff in semiconductor stocks heavily impacted investor sentiment.
The Hang Seng Index edged up 0.2%, and the mainland-focused CSI 300 Index decreased 2.4% as elevated bond yields and rising oil prices further dampened mood.
Global bond yields advanced amid worries of prolonged disruptions in energy supply in the Middle East, adding fears that inflation and borrowing costs may remain elevated for an extended period.
Bond yields in New York, Europe, and Japan advanced on mounting concerns over massive government spending and persistent inflationary pressures.
Japan's 10-year government bond yield advanced to 2.95%, the highest in three decades amid fiscal deficit worries and growing expectations of an imminent rate hike from the Bank of Japan.
Germany’s 10-year Bund yield climbed above 3.25%, reaching its highest level since March 2011, and the UK gilt yield rose above 5.0%, reaching a high not seen since April 2008.
The U.S. federal government debt crossed $40 trillion, a new record high, as lawmakers overlook the long-term consequences of rapidly rising overall debt and its impact on borrowing costs and pressure on the U.S. dollar.
The yield on 10-year Chinese government bonds hovered near 1.67%, a multi-year low amid expectations that the weakening domestic demand growth may prompt Beijing and the People's Bank of China to enact new stimulus measures.
China Indexes and Stocks
The Hang Seng Index edged up 0.2% to 25,523.18, and the mainland-focused CSI 300 Index decreased 2.4% to 4,611.77.
Tech stocks in Shenzhen and Shanghai led decliners, tracking losses in overnight trading in New York and overlooking strong earnings results.
GigaDevice dropped 7.8% to HK $476.80 after the semiconductor company reported strong results in the first half.
Revenue in the first half soared 178.7% to 11.6 billion yuan, while net income attributable to shareholders surged more than tenfold to 6.9 billion yuan.
SMIC decreased 5.4% to HK $71.65, Hygon Information Technology declined 6.4% to ¥262.07, and Hua Hong Grace Semiconductor dropped 12.7% to HK $112.50.
Global Semiconductor Sell-off Dragged Down Indexes In China
Li Chen
19 Aug, 2026
Hong Kong
China's indexes faced significant challenges as a widespread selloff in semiconductor stocks heavily impacted investor sentiment.
The Hang Seng Index edged up 0.2%, and the mainland-focused CSI 300 Index decreased 2.4% as elevated bond yields and rising oil prices further dampened mood.
Global bond yields advanced amid worries of prolonged disruptions in energy supply in the Middle East, adding fears that inflation and borrowing costs may remain elevated for an extended period.
Bond yields in New York, Europe, and Japan advanced on mounting concerns over massive government spending and persistent inflationary pressures.
Japan's 10-year government bond yield advanced to 2.95%, the highest in three decades amid fiscal deficit worries and growing expectations of an imminent rate hike from the Bank of Japan.
Germany’s 10-year Bund yield climbed above 3.25%, reaching its highest level since March 2011, and the UK gilt yield rose above 5.0%, reaching a high not seen since April 2008.
The U.S. federal government debt crossed $40 trillion, a new record high, as lawmakers overlook the long-term consequences of rapidly rising overall debt and its impact on borrowing costs and pressure on the U.S. dollar.
The yield on 10-year Chinese government bonds hovered near 1.67%, a multi-year low amid expectations that the weakening domestic demand growth may prompt Beijing and the People's Bank of China to enact new stimulus measures.
China Indexes and Stocks
The Hang Seng Index edged up 0.2% to 25,523.18, and the mainland-focused CSI 300 Index decreased 2.4% to 4,611.77.
Tech stocks in Shenzhen and Shanghai led decliners, tracking losses in overnight trading in New York and overlooking strong earnings results.
GigaDevice dropped 7.8% to HK $476.80 after the semiconductor company reported strong results in the first half.
Revenue in the first half soared 178.7% to 11.6 billion yuan, while net income attributable to shareholders surged more than tenfold to 6.9 billion yuan.
SMIC decreased 5.4% to HK $71.65, Hygon Information Technology declined 6.4% to ¥262.07, and Hua Hong Grace Semiconductor dropped 12.7% to HK $112.50.
Global Bond Yields Advanced as U.S. Debt Crossed $40 Trillion
Barry Adams
18 Aug, 2026
New York City
U.S. stocks turned sharply lower amid persistent tensions in the Middle East, and global bond yields advanced as rising concerns over resurgent inflation dominated investor sentiment.
The S&P 500 Index decreased 0.9%, the tech-heavy Nasdaq Composite decreased 1.1%, and the yield on 10-year U.S. Treasury notes edged up to 4.74%.
Bond yields in New York, Europe, and Japan advanced on mounting concerns over massive government spending and persistent inflationary pressures.
Japan's 10-year government bond yield advanced to 2.95%, the highest in three decades amid fiscal deficit worries and growing expectations of an imminent rate hike from the Bank of Japan.
Germany’s 10-year Bund yield climbed above 3.25%, reaching its highest level since March 2011, and the UK gilt yield rose above 5.0%, reaching a high not seen since April 2008.
The U.S. federal government debt crossed $40 trillion, a new record high, as lawmakers overlook the long-term consequences of rapidly rising overall debt and its impact on borrowing costs and pressure on the U.S. dollar.
The U.S. debt soared by $10 trillion in just four years and eight months, from $30 trillion on Feb 1, 2022, and jumped by the same amount from $20 trillion on September 8, 2017.
It took the U.S. government 205 years from the founding of the country to borrow its first $1 trillion, crossing that milestone in October 1981 during Ronald Reagan's presidency.
While it took more than 200 years to accumulate the first trillion dollars, the national debt grows by one trillion dollars every 100 days.
U.S. Movers
Home Depot increased 1.7% to $343.55 after the specialty retailer reported better-than-expected results in the fiscal second quarter ending on August 2.
Revenue increased 5.7% to $47.9 billion from $45.3 billion, net income advanced 4.7% to $4.8 billion from $4.5 billion, and diluted earnings per share rose to $4.79 from $4.58 a year ago.
Comparable sales accelerated to 1.7% from 1.0%, and average ticket rose to $92.50 from $90.01 a year ago, respectively.
The do-it-yourself retailer guided full-year 2026 total sales to rise between 2.5% and 4.5%, and comparable sales growth to range between flat and 2.0%.
The company estimated a gross margin for the full year at 33.1% and an operating margin between 12.4% and 12.6%.
Global Bond Yields Advanced as U.S. Debt Crossed $40 Trillion
Barry Adams
18 Aug, 2026
New York City
U.S. stocks turned sharply lower amid persistent tensions in the Middle East, and global bond yields advanced as rising concerns over resurgent inflation dominated investor sentiment.
The S&P 500 Index decreased 0.9%, the tech-heavy Nasdaq Composite decreased 1.1%, and the yield on 10-year U.S. Treasury notes edged up to 4.74%.
Bond yields in New York, Europe, and Japan advanced on mounting concerns over massive government spending and persistent inflationary pressures.
The U.S. federal government debt crossed $40 trillion, a new record high, as lawmakers overlook the long-term consequences of rapidly rising overall debt and its impact on borrowing costs and pressure on the U.S. dollar.
The U.S. debt soared by $10 trillion in just four years and eight months, from $30 trillion on Feb 1, 2022, and jumped by the same amount from $20 trillion on September 8, 2017.
It took the U.S. government 205 years from the founding of the country to borrow its first $1 trillion, crossing that milestone in October 1981 during Ronald Reagan's presidency.
While it took more than 200 years to accumulate the first trillion dollars, the national debt grows by one trillion dollars every 100 days.
U.S. Movers
Home Depot increased 1.7% to $343.55 after the specialty retailer reported better-than-expected results in the fiscal second quarter ending on August 2.
Revenue increased 5.7% to $47.9 billion from $45.3 billion, net income advanced 4.7% to $4.8 billion from $4.5 billion, and diluted earnings per share rose to $4.79 from $4.58 a year ago.
Comparable sales accelerated to 1.7% from 1.0%, and average ticket rose to $92.50 from $90.01 a year ago, respectively.
The do-it-yourself retailer guided full-year 2026 total sales to rise between 2.5% and 4.5%, and comparable sales growth to range between flat and 2.0%.
The company estimated a gross margin for the full year at 33.1% and an operating margin between 12.4% and 12.6%.
Japan's Bond Yield Advanced to a Three-Decade High, Yen Drifted Lower
Akira Ito
18 Aug, 2026
Tokyo
Japan's indexes traded down on Tuesday and reversed gains in the previous session following the rise in bond yield to a three-decade high.
The Nikkei 225 Stock Average decreased 1.8%, the broader TOPIX declined 0.6%, and the yen weakened to 159.67 against the U.S. dollar.
The yield on a 10-year Japanese government bond advanced to 2.95%, the highest level since 1996, amid mounting fiscal concerns and growing expectations of an imminent Bank of Japan rate hike.
The yen has been under pressure despite a joint intervention by the U.S. and Japan, as investors worry that the Prime Minister Takaichi's proposed consumption tax cut to 1% on food items for two years is likely to widen the fiscal gap without identifying an alternate revenue source.
Geopolitical tensions remained high after the U.S. and Iran ended a two-month ceasefire on Monday, and the Brent crude oil price increased 0.7% to $91.49 a barrel.
The energy product shipment through the Strait of Hormuz is likely to remain disrupted for a prolonged time amid fading hopes for a Middle East peace deal.
Investors are closely watching the risk of renewed fighting in the Middle East, disruptions to oil supply through the Strait of Hormuz, and their impact on global growth, inflation, and crude oil prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.8%, and the broader TOPIX fell 0.6% to 4,157.71.
Technology and consumer stocks led decliners in Tokyo on Tuesday, following a weakness in overnight trading in New York.
Tokyo Electron declined 5.5% to ¥56,780.0, Advantest Corp. fell 3.9% to ¥36,310.0, and Lasertec eased 5.6% to ¥37,050.0.
Fast Retailing Co. declined 1.9% to ¥75,320.0, Aeon Co. decreased 0.9% to ¥1,354.50, and Nintendo Co. increased 0.2% to ¥8,777.0.
Japan's Bond Yield Advanced to a Three-Decade High, Yen Drifted Lower
Akira Ito
18 Aug, 2026
Tokyo
Japan's indexes traded down on Tuesday and reversed gains in the previous session following the rise in bond yield to a three-decade high.
The Nikkei 225 Stock Average decreased 1.8%, the broader TOPIX declined 0.6%, and the yen weakened to 159.67 against the U.S. dollar.
The yield on a 10-year Japanese government bond advanced to 2.95%, the highest level since 1996, amid mounting fiscal concerns and growing expectations of an imminent Bank of Japan rate hike.
The yen has been under pressure despite a joint intervention by the U.S. and Japan, as investors worry that the Prime Minister Takaichi's proposed consumption tax cut to 1% on food items for two years is likely to widen the fiscal gap without identifying an alternate revenue source.
Geopolitical tensions remained high after the U.S. and Iran ended a two-month ceasefire on Monday, and the Brent crude oil price increased 0.7% to $91.49 a barrel.
The energy product shipment through the Strait of Hormuz is likely to remain disrupted for a prolonged time amid fading hopes for a Middle East peace deal.
Investors are closely watching the risk of renewed fighting in the Middle East, disruptions to oil supply through the Strait of Hormuz, and their impact on global growth, inflation, and crude oil prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.8%, and the broader TOPIX fell 0.6% to 4,157.71.
Technology and consumer stocks led decliners in Tokyo on Tuesday, following a weakness in overnight trading in New York.
Tokyo Electron declined 5.5% to ¥56,780.0, Advantest Corp. fell 3.9% to ¥36,310.0, and Lasertec eased 5.6% to ¥37,050.0.
Fast Retailing Co. declined 1.9% to ¥75,320.0, Aeon Co. decreased 0.9% to ¥1,354.50, and Nintendo Co. increased 0.2% to ¥8,777.0.
China's Weakening Economic Growth Outlook Dampen Mood In Stock Trading
Li Chen
18 Aug, 2026
Hong Kong
China's indexes advanced in cautious trading as investors reviewed the latest updates on key economic indicators.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index declined 0.9%, with markets turning choppy after recent gains in technology and semiconductor stocks.
Semiconductor stocks led the overall market rebound in the previous two weeks amid strong earnings and Beijing's continued support to develop a self-sufficient industry.
Investor sentiment was cautious after the release of July's industrial production, retail sales, fixed-asset investment, and jobless rate, and industrial production data.
New home prices in China's top-tier four cities decline in July from a year ago amid persistent demand weakness.
Prices fell 2.3% in Beijing, decreased 2.2%, and in Shenzhen eased 2.9%, but rose in Shanghai by 3%, according to the National Bureau of Statistics.
Property investment downturn intensified and fell in the first seven months to 19.2% from an 18% decline in the first six months to June.
Sales of new homes by floor area declined 11.8% in the first seven months, following an 11.6% decline in the first half of the year.
China's persistent property market weakness has weighed on the broader economy for five years, but the sector has gained traction in recent months on the back of supportive measures from the People's Bank of China and local regulators.
Geopolitical tensions remained high after the U.S. and Iran ended a two-month ceasefire on Monday, and the Brent crude oil price increased 0.6% to $91.45 a barrel.
The energy product shipment through the Strait of Hormuz is likely to remain disrupted for a prolonged time amid fading hopes for a Middle East peace deal.
China Indexes and Stocks
The Hang Seng Index declined 0.6% to 25,296.55, and the mainland-focused CSI 300 Index fell 0.9% to 4,698.78.
Semiconductor Manufacturing International declined 0.8% to HK $74.50, GigaDevice Semiconductor decreased 6.3% to HK $519.50, and Eoptolink Technology eased 3.4% to ¥450.49, and Zhongji Innolight dropped 2% to ¥981.16.
PetroChina and CNOOC advanced around 1.5% on higher oil prices and fading hopes of a Middle East deal.
China's Weakening Economic Growth Outlook Dampen Mood In Stock Trading
Li Chen
18 Aug, 2026
Hong Kong
China's indexes advanced in cautious trading as investors reviewed the latest updates on key economic indicators.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index declined 0.9%, with markets turning choppy after recent gains in technology and semiconductor stocks.
Semiconductor stocks led the overall market rebound in the previous two weeks amid strong earnings and Beijing's continued support to develop a self-sufficient industry.
Investor sentiment was cautious after the release of July's industrial production, retail sales, fixed-asset investment, and jobless rate, and industrial production data.
Geopolitical tensions remained high after the U.S. and Iran ended a two-month ceasefire on Monday, and the Brent crude oil price increased 0.6% to $91.45 a barrel.
The energy product shipment through the Strait of Hormuz is likely to remain disrupted for a prolonged time amid fading hopes for a Middle East peace deal.
China Indexes and Stocks
The Hang Seng Index declined 0.6% to 25,296.55, and the mainland-focused CSI 300 Index fell 0.9% to 4,698.78.
Semiconductor Manufacturing International declined 0.8% to HK $74.50, GigaDevice Semiconductor decreased 6.3% to HK $519.50, and Eoptolink Technology eased 3.4% to ¥450.49, and Zhongji Innolight dropped 2% to ¥981.16.
PetroChina and CNOOC advanced around 1.5% on higher oil prices and fading hopes of a Middle East deal.
U.S. and World Markets Flatlined Ahead of Middle East Ceasefire Deadline and Stagflation Worries
Barry Adams
17 Aug, 2026
New York City
U.S. and world markets continued to climb in the face of ongoing hostilities in the Middle East, weakening the global macroeconomic outlook, as well as concerns around the artificial intelligence trade.
Last week, world markets advanced to new record highs for the second consecutive week as AI-related companies reported strong earnings.
Investors overlooked persistent tensions in the Middle East and broadening inflationary pressures in the U.S., Europe, and Japan.
The West Texas Intermediate crude oil price per barrel increased 0.5% to $82.77, and the Brent crude oil price advanced to $89.21 as oil tanker traffic through the Strait of Hormuz nearly halted ahead of the ceasefire expiry later today.
This week a few economic indicators are scheduled for release, and on the earnings front, Home Depot and Lowe's report on Tuesday and Wednesday, and Walmart is set to release its quarterly update on Thursday.
The U.S. Federal Reserve is to release its latest minutes of meeting on Wednesday, and disappointing retail sales data and relatively mild inflation data have reduced
U.S. Retail Sales Slipped In July
U.S. retail sales fell by 0.6% in July to a total of $763.6 billion, marking the first monthly decline in nine months.
U.S. retail and food services sales eased 0.6% in July to a total seasonally adjusted amount of $763.6 billion, while achieving a 5.0% annual gain, according to data from the U.S. Census Bureau.
Retail sales are adjusted for seasonal variations but not for inflation.
Motor vehicle and parts dealers fell 1.8%, nonstore (online) retailers dropped 2.2%, and gasoline stations decreased by 0.9%, while sales at apparel and accessories stores rose 1.9%, health and personal care rose 0.7%, and food services and beverage places increased by 0.5%.
Stock Movers
A.P. Moeller Maersk A/S Class A increased 3.4% to DKK 20,480.0 and traded at a four-year high after the ocean freight company reported better-than-expected second quarter results last week.
Revenue in the second quarter jumped 20% to $15.8 billion from $13.1 billion, and earnings before interest and taxes advanced to $1.6 billion.
Ocean segment loaded-volume increased 4% and revenue surged 23%; logistics and services revenue advanced 15%; and terminals segment revenue advanced 11% and volume rose 2.2% from a year ago, respectively.
Ocean freight vessel utilization remained higher at 96%.
Higher spot rates and resilient shipping volume, despite global tensions, drove free cash flow to $549 million from negative $373 million a year ago.
The company revised its full-year 2026 guidance for underlying EBITDA to between $10.5 billion and $12.5 billion, compared to the previous estimate between $8.0 billion and $10.0 billion.
Maersk updated its free cash flow estimate to zero from the previous estimate of negative $1.5 billion because of the improved visibility for the remainder of the year.
This is based on global container market volume growth for the full year 2026 of around 4%.
U.S. and World Markets Flatlined Ahead of Middle Ceasefire Deadline and Stagflation Worries
Barry Adams
17 Aug, 2026
New York City
U.S. and world markets continued to climb in the face of ongoing hostilities in the Middle East, weakening the global macroeconomic outlook, as well as concerns around the artificial intelligence trade.
Last week, world markets advanced to new record highs for the second consecutive week as AI-related companies reported strong earnings.
Investors overlooked persistent tensions in the Middle East and broadening inflationary pressures in the U.S., Europe, and Japan.
The West Texas Intermediate crude oil price per barrel increased 0.5% to $82.77, and the Brent crude oil price advanced to $89.21 as oil tanker traffic through the Strait of Hormuz nearly halted ahead of the ceasefire expiry later today.
This week a few economic indicators are scheduled for release, and on the earnings front, Home Depot and Lowe's report on Tuesday and Wednesday, and Walmart is set to release its quarterly update on Thursday.
The U.S. Federal Reserve is to release its latest minutes of meeting on Wednesday, and disappointing retail sales data and relatively mild inflation data have reduced
U.S. Retail Sales Slipped In July
U.S. retail sales fell by 0.6% in July to a total of $763.6 billion, marking the first monthly decline in nine months.
U.S. retail and food services sales eased 0.6% in July to a total seasonally adjusted amount of $763.6 billion, while achieving a 5.0% annual gain, according to data from the U.S. Census Bureau.
Retail sales are adjusted for seasonal variations but not for inflation.
Motor vehicle and parts dealers fell 1.8%, nonstore (online) retailers dropped 2.2%, and gasoline stations decreased by 0.9%, while sales at apparel and accessories stores rose 1.9%, health and personal care rose 0.7%, and food services and beverage places increased by 0.5%.
Stock Movers
A.P. Moeller Maersk A/S Class A increased 3.4% to DKK 20,480.0 and traded at a four-year high after the ocean freight company reported better-than-expected second quarter results last week.
Revenue in the second quarter jumped 20% to $15.8 billion from $13.1 billion, and earnings before interest and taxes advanced to $1.6 billion.
Ocean segment loaded-volume increased 4% and revenue surged 23%; logistics and services revenue advanced 15%; and terminals segment revenue advanced 11% and volume rose 2.2% from a year ago, respectively.
Ocean freight vessel utilization remained higher at 96%.
Higher spot rates and resilient shipping volume, despite global tensions, drove free cash flow to $549 million from negative $373 million a year ago.
The company revised its full-year 2026 guidance for underlying EBITDA to between $10.5 billion and $12.5 billion, compared to the previous estimate between $8.0 billion and $10.0 billion.
Maersk updated its free cash flow estimate to zero from the previous estimate of negative $1.5 billion because of the improved visibility for the remainder of the year.
This is based on global container market volume growth for the full year 2026 of around 4%.