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%.