Hungary Industrial Output Beats Forecasts With 4.7% July Growth 
Yen Rebounds as BOJ Rate Hike Bets Rise 
Hong Kong Eyes Offshore Yuan Expansion, Deeper China Market Links 
Asian Currencies Mixed as Yen Rallies on BOJ Bets 
Japan, US Target AI and Chips in $550 Billion Investment Push 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
JPMorgan Sees ECB Raising Rates to 2.75% in December 
OPEC+ Expected to Hold October Oil Output Steady 
US Stock Futures Mixed as Strong Jobs Data Boosts Fed Rate Hike Bets 
Asian Stocks Rally as Fed Rate Hike Fears Ease 
Chinese AI Stocks Rally After OpenAI Launches GPT-6 Astra 
UK House Prices Fall for First Time Since 2023 
Iran Plans New Gulf Restricted Zone as Hormuz Tensions Push Oil Higher 
Singapore Straits Times Index Hits Record High as Banks, Property Stocks Rally 
Oil Prices Rise as Hormuz Tensions Threaten Supply 
U.S. Payrolls Seen Rebounding in August as Labor Market Stays Soft 
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The S&P 500 closed lower on Friday, retreating from its latest record high as weakness in AI-related stocks and disappointing U.S. retail sales weighed on investor sentiment.
The S&P 500 fell 0.17% to 7,785.76, while the Nasdaq Composite dropped 0.28% to 26,729.16. The Dow Jones Industrial Average declined 0.20% to 53,732.41. Despite Friday’s losses, the S&P 500 gained 0.4% for the week and the Nasdaq rose 0.1%, giving both indexes a third consecutive weekly advance.
Applied Materials shares tumbled 5.1% after the semiconductor equipment maker’s upbeat quarterly outlook failed to meet elevated investor expectations. The stock had doubled in 2026 amid surging demand for equipment supporting AI data center expansion. Other chip stocks also weakened, with Broadcom falling 5.9% and Intel losing about 2%, highlighting growing concerns over lofty AI stock valuations.
Geopolitical tensions provided additional pressure as traffic through the Strait of Hormuz slowed dramatically following attacks on two more ships. Oil prices climbed amid concerns over supply disruptions, helping the S&P 500 energy sector gain 1.4%.
Economic data also disappointed investors. July U.S. retail sales were weaker than expected, while the University of Michigan’s preliminary consumer sentiment index came in at 51 for August, below economists’ forecast of 54.5.
Markets nevertheless largely expect the Federal Reserve to keep interest rates unchanged at its September meeting. CME FedWatch data showed traders pricing in a 67% probability of no rate change and a 33% chance of an increase.
Elsewhere, Reddit shares surged nearly 13% after the company was selected to join the S&P 500 effective August 18. Workday fell 3.8% after soaring 18% a day earlier on reports of potential acquisition talks with Silver Lake.
Drone stocks also rallied after President Donald Trump announced plans for tariffs on imported drones and components, sending Red Cat up 8.8% and Unusual Machines about 25% higher.
