Market Brief — August 4, 2026

US indices advanced, with SPX up 1.8%, DJIA up 1.7%, and ^IXIC up 2.6% as gains in technology (VGT +4.4%) and industrials (XLI +1.8%) outweighed softness in energy (XLE -0.5%). European benchmarks were firmer, with FRA40 up 0.6%, DAX up 0.8%, and UKX up 0.2%, while Asia's 000001.SS index ended unchanged at 0.0%.

Major central banks kept policy on hold, with the Federal Reserve leaving the target range at 3.50–3.75% at the July 28–29 meeting with three members preferring a hike, the ECB holding its deposit facility rate at 2.25%, and the Bank of England keeping Bank Rate at 3.75% in a 6:3 vote. US June JOLTs job openings came in at 7.359M versus 7.537M previously and 7.4M consensus, focusing attention on August releases including July Nonfarm Payrolls forecast at 100,000–130,000, July CPI expected around 3.4–3.6% headline and 2.5–2.7% core, and July PCE due on August 26 alongside July Fed minutes on August 19. Brent (UKOIL) and WTI crude fell more than 5% on August 4 amid improved diplomacy between the US and Iran, while spot gold stayed above $4,000 per ounce, the US Dollar Index traded near the 100 area, USD/JPY (USDJPY) remained in the high-150s, and reports cited about $160 billion of Japanese FX intervention in 2026.

SpaceX (SPCX) reported Q2 revenue of $7.8 billion and a net loss of $541 million, disclosed AI-related capital expenditures of $15.8 billion versus a $13.09 billion estimate, and saw its shares fall about 6% in after-hours trading from a $125.33 close ahead of a roughly 911.5 million share lockup expiration on August 6. BP (BP) reported Q2 2026 underlying replacement cost profit of $5.73 billion, more than doubling from $2.35 billion in Q2 2025 as revenue rose 47% year-on-year to $70 billion, Brent crude averaged $103.85 per barrel, and the company raised its dividend by 4% to 8.66 cents per share while reducing net debt to $22.25 billion. Caterpillar (CAT) posted record Q2 2026 sales and revenues of $20.5 billion, up 24% year-on-year with adjusted EPS of $8.17, operating profit of $4.295 billion up 50%, and an order backlog of about $72.1 billion alongside a mid-to-high-teens full-year sales growth outlook, while ams-OSRAM (AMS) delivered Q2 revenue of €805 million with about a 17% adjusted EBITDA margin at the top end of guidance and saw its shares rise roughly 5.7% intraday and 6.7% premarket to $17.76. H.I.G. Capital completed the sale of ECI, Covius completed the integration of Title365's operations, J.F. Lehman & Company completed the sale of ENTACT, Verdant Capital Partners completed the acquisition of Native Roots retail operations, and REED MINERALS completed a strategic acquisition of U.S. MINERALS. Announced transactions included Genergy acquiring Utility Research Associates to advance its vision for smart utilities management, NNS acquiring shares in OCI, Fishbowl Inventory acquiring Repfabric, Next Century Spirits acquiring the Grain & Barrel Spirits brand portfolio including Chicken Cock Whiskey, and MMS Group acquiring TMI-Orion and TMI-USA, anchoring JRI's commitment to the North American market.