China’s blue-chip CSI300 Index and the Shanghai Composite Index closed largely flat. Both indexes also finished the week slightly down.

Hong Kong benchmark Hang Seng declined 1.1 percent, down 2.2 percent for the week.

Analysts said caution ahead of interim earnings results kept investors on the sidelines, while the Unitree IPO drained some liquidity from the market.

Unitree, the country’s most high-profile humanoid robot maker, is widely expected to have an blockbuster stock market debut in Shanghai next week.

In A-shares, insurance, healthcare and real estate sectors led the decline, while communications and rare-earth shares outperformed.

In Hong Kong, property giant CK Asset lost 6.4 percent after the firm declared no special dividend despite strong mid-term earnings.

Hang Seng Tech dropped 1.8 percent, with index heavyweight JD.com plunging 10 percent due to a drop in second-quarter revenue.

Semiconductor giant Hua Hong Grace lost 12 percent in Hong Kong and 8.6 percent in mainland after the firm gave weaker-than-expected third quarter revenue guidance.

China’s widening cross-border tax collection has also weighed on sentiment, market participants said.

“Hong Kong financials have come under pressure following news that China may impose taxes on offshore insurance income, raising concerns over potentially tighter controls on offshore investments from mainland China,” Kelly Chung, chief investment officer for multi-assets at Value Partners, said in a note.

For both China and Hong Kong, worsening domestic demand and concentrated positioning remain headwinds, she added.

The smaller Shenzhen index was up 0.33 percent, the start-up board ChiNext Composite index was higher by 1.12 percent and Shanghai’s tech-focused STAR50 index was unchanged for the day.

The S&P 500 information technology index dropped 0.5 percent, with Broadcom taking the biggest jolt, down 5.5 percent. The declines weighed down the Nasdaq.

Applied Materials fell 5.2 percent, even after the chip equipment maker forecast fourth-quarter revenue above Wall Street estimates. The Philadelphia SE Semiconductor index fell 1 percent.

Data storage companies defied the broader decline, with Sandisk and Western Digital advancing 5.7 percent and 1.4 percent, respectively. Energy stocks on the S&P 500 rose 1.5 percent, tracking a rise in oil prices. Reddit surged more than 12 percent after the social media company was named a new addition to the S&P 500 index, effective August 18.

Financial and healthcare stocks declined, pulling the Dow lower.

“There is some profit taking, but I expect that most institutional investors remain fairly optimistic,” said Peter Andersen, founder and CEO of Andersen Capital Management.

Both the S&P 500 and the Nasdaq were on track for their third consecutive weekly gain, the longest winning streak since early April, as strong earnings and reduced bets on interest rate hikes after benign data lifted sentiment. The July retail sales reading came in weaker-than-expected, after an unrevised 0.2 percent gain in June, the Commerce Department’s Census Bureau said.

At 12:14 p.m. ET, the Dow Jones Industrial Average fell 122.05 points, or 0.23 percent, to 53,717.94, the S&P 500 lost 12.71 points, or 0.16 percent, to 7,786.28 and the Nasdaq Composite lost 101.63 points, or 0.38 percent, to 26,701.40.

“We will always have these slight disruptions when we have negative economic news, especially when investors are trying to figure out how the Fed will react to this kind of news,” said Andersen.

Rising energy prices linked to the conflict, along with limited guidance from Fed Chair Kevin Warsh, left investors scrutinizing economic data for clues on growth.

Developments in the Middle East remained in focus as transit through the Strait of Hormuz appeared to have come to a near standstill after two more ships were attacked and the US said it could maintain a naval blockade of Iran indefinitely.

The University of Michigan’s preliminary consumer sentiment survey came in at 51 in August, below expectations of 54.5, according to economists polled by Reuters.

Among other stocks, Workday slipped 3.8 percent. Reuters reported on Thursday that private equity firm Silver Lake was in talks to acquire the software firm. Shares of some drone makers gained after President Donald Trump said late on Thursday that he would impose tariffs on imports of drones and their components.

Red Cat added 8 percent and Unusual Machines jumped 25.5 percent.

Advancing issues outnumbered decliners by a 1.13-to-1 ratio on the NYSE and by a 1.13-to-1 ratio on the Nasdaq.

The S&P 500 posted 12 new 52-week highs and one new low while the Nasdaq Composite recorded 68 new highs and 47 new lows.

The STOXX 600 ended 0.2 percent lower at 657.86 and logged a 0.3 percent drop on a weekly basis.

Still, the euro zone benchmark was within 1 percent of a record high, having rallied about 3 percent in the previous four weeks, underpinned by better-than-expected second-quarter earnings.

Aggregate STOXX 600 earnings are now forecast to grow 23.4 percent, making it the biggest increase in nearly four years, as profits in the energy and materials sectors soared.

“Companies have been generating efficiencies in their business models and adapting to the increases in costs that they’ve seen. Consumers also have remained remarkably resilient, given the challenges facing them from higher energy costs,” said Michael Hewson, a senior market analyst at iForex.

The relatively smaller tech exposure in Europe has also worked in the region’s favour, as global investors look to the region while diversifying their portfolios away from AI-related stocks.

Data has also pointed to a broadly resilient economy as the region’s economy grew 0.4 percent in the second quarter from the previous three months, in line with economists polled by Reuters.

“This has led us to broaden our European equity exposure in multi-asset portfolios, taking profit on the incredible ride of European financials and broadening to all sectors across Europe,” said Laurent Clavel, global head of multi-asset at AXA Investment Managers, BNP Paribas Asset Management.

However, as Iran and the US remain at loggerheads over the control of the crucial Strait of Hormuz, oil prices are also likely to stay above pre-conflict levels, adding to uncertainty over longer-term impacts on corporate performance and the economy.

Healthcare stocks led sectoral declines with a 1.5 percent drop, with Zealand Pharma down over 5.8 percent. Defence stocks, on the other hand, gained 1.2 percent, with Rheinmetall up over 3.2 percent.

European software companies SAP rose 2.7 percent, Nemetschek climbed 8.4 percent and Temenos gained 1.8 percent.

A Reuters report that private equity firm Silver Lake is in talks to acquire US-based Workday rekindled investor interest in the group that had fallen out of favour on AI disruption concerns.

Among others, British insurer Aviva advanced 1.8 percent after beating first-half profit expectations. The STOXX insurance index added 0.8 percent.

Maersk added 8.7 percent and hit its highest in four years, extending strong gains after Thursday’s stronger-than-expected quarterly results and guidance upgrade.

The benchmark Nikkei 225 advanced 0.59 percent to close at 68,713.80, notching a 4.7 percent weekly gain. The broader Topix climbed 0.51 percent to 4,197.20, a record closing level.

US stocks rallied overnight after data showed July producer prices were unchanged, reinforcing expectations the Fed will hold rates steady next month. The S&P 500 and the Nasdaq both closed at record highs.

There were 132 advancers on the Nikkei 225 against 92 decliners and one unchanged.

The largest percentage gainers in the index were Nexon, up 19.85 percent and marking its biggest one-day gain since February 2024, followed by Shift, 7.57 percent higher, and Nintendo, which gained 6.91 percent.

The largest losers were Trend Micro, down 14.60 percent, marking its steepest one-day fall since February 2024, followed by Lasertec, 4.12 percent lower, and Isetan Mitsukoshi Holdings, which lost 3.98 percent.

The two-year yield, the one most sensitive to BOJ policy rates, added 0.5 basis point (bp) to 1.650 percent, the highest since May 1995. Yields move inversely to bond prices.

The five-year yield advanced 1.5 bps to a record high of 2.135 percent, extending its streak of gains to five sessions. The benchmark 10-year JGB yield climbed 0.5 bp to 2.875 percent.

Three sources familiar with the BOJ’s thinking said the central bank is set to raise interest rates as soon as September and is considering accelerating the pace of hikes thereafter.

“Speculation about an early interest rate hike by the Bank of Japan continues to weigh on the market,” Takayuki Miyajima, senior economist at Sony Financial Group, said in a note.

Japan may signal the chance of faster-than-expected interest rate increases to stem the yen’s decline, Tokyo’s former top currency diplomat Mitsuhiro Furusawa told Reuters.

Data on Thursday showed Japan’s July producer price index rose 7.2 percent year-on-year, slightly below forecasts but still elevated enough to reinforce expectations for a rate hike.

JGBs rose earlier in the session, tracking gains in US Treasuries after tame producer price data cooled expectations for a Federal Reserve rate hike next month.

Gains in Meta Platforms and Alphabet lifted the S&P 500 communication services index 0.5%, but mixed moves in chip stocks such as Broadcom and Nvidia left the S&P 500 and the Nasdaq swinging between gains and losses.

Applied Materials fell 4%, even after the chip equipment maker forecast fourth-quarter revenue above Wall Street estimates.

Energy stocks on the S&P 500 rose 1.6%, while miners and industrials gained about 0.5% each.

“It’s good to see an expansion in the markets here with broadening out, not just hiding out in hyperscalers like Microsoft and Nvidia,” said Bob Lang, founder and chief strategist at Explosive Options.

Declines in Amgen and Johnson & Johnson weighed on the Dow.

At 10:05 a.m. ET, the Dow Jones Industrial Average fell 21.14 points, or 0.04%, to 53,818.85, the S&P 500 gained 8.66 points, or 0.11%, to 7,807.65 and the Nasdaq Composite gained 17.78 points, or 0.07%, to 26,822.61.

Investors also parsed a weaker-than-expected retail sales reading for July, after an unrevised 0.2% gain in June, the Commerce Department’s Census Bureau said.

“If they (the Fed) raise rates at the next meeting, it’s not going to be a horrible thing … If they do not change policy, it means that they have confidence that inflation trends are moving in the right direction,” said Lang.

The figures follow benign inflation data earlier this week that eased some concerns about a Federal Reserve interest-rate hike in September, putting the S&P 500 and the Nasdaq on track for a third consecutive weekly gain, their longest winning streak since early April.

The University of Michigan’s preliminary consumer sentiment survey came in at 51 in August, below expectations of 54.5, according to economists polled by Reuters.

Developments in the Middle East continued to weigh on investor sentiment after transit through the Strait of Hormuz appeared to have come to a near standstill after two more ships were attacked and the U.S. said it could maintain a naval blockade of Iran indefinitely.

Among other stocks, Workday slipped 4.4%. Reuters reported on Thursday that private equity firm Silver Lake was in talks to acquire the software firm.

Reddit surged nearly 15% after the social media companywas named a new addition to the S&P 500 index, effective August 18.

Shares of some drone makers gained after President Donald Trump said late on Thursday that he would impose tariffs on imports of drones and their components.

Red Cat jumped 7% and Unusual Machines added 14%.

Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE and by a 1.02-to-1 ratio on the Nasdaq.

The S&P 500 posted nine new 52-week highs and one new low while the Nasdaq Composite recorded 49 new highs and 32 new lows.

The United States on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered.

Dubai’s main index fell 0.4% for a second straight session, dragged lower by a 4.1% slide in budget carrier Air Arabia and a 0.5% decline in blue-chip developer Emaar Properties.

Air Arabia posted its biggest intraday drop in more than three months after reporting a 75% fall in second-quarter net profit to 87.9 million dirhams ($23.93 million).

The Investment Corporation of Dubai-owned construction firm Alec Holding fell 4.4% to a four-month low after reporting a second-quarter loss of 16.3 million dirhams ($4.44 million), compared with a profit of 122.9 million dirhams a year earlier.

Abu Dhabi’s benchmark index meanwhile edged up 0.02%, supported by a 1.8% rise in both Orascom Construction and AI-driven space tech firm Space42.

Cairo-based EPC contractor Orascom Construction posted a 74% jump in second-quarter net profit to $61.9 million.

Adnoc Gas declined 0.9% after its parentcompany said that two of its vessels were attacked while transiting the Strait of Hormuz on Thursday evening.

Abu Dhabi’s index posted a 0.5% weekly loss after three consecutive weeks of gains, while Dubai fell 1% after two straight weeks of gains, according to LSEG data.

The CSE All-Share index settled up 0.39% at 21,623.17, closing the week 1.1% higher.

Industrial Asphalts (Ceylon) PLC and Softlogic Capital PLC were the top percentage gainers on the CSE All-Share index

Trading volume on the index fell to 76 million shares from 76.7 million in the previous session.

The equity market’s turnover fell to 2.24 billion Sri Lankan rupees ($6.7 million) from 2.78 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 723.7 million rupees, while domestic investors were net buyers, purchasing shares worth 2.21 billion rupees, the data showed.

The Nifty 50 fell 0.8% this week to 24,366 and the BSE Sensex lost 0.6% to 78,009.25. On Friday, they ended little changed.

The week saw Brent crude prices rise 4.6% to $87 per barrel due to a lack of progress in peace talks between the U.S. and Iran to end a months-long war in the Middle East.

The U.S. on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered, global oil supply is dropping, and regional tensions are rising.

“As long as the macroeconomic concerns arising from higher crude oil prices persist, we are unlikely to see a unidirectional move in the market,” said Pankaj Pandey, head of retail research at ICICI Securities.

The week also marked the end of the quarterly earnings season, which has largely been ahead of expectations, according to analysts.

Fifteen of the 16 major sectors fell in India this week, with broader mid-caps rising 0.5% and small-caps dropping 0.7%.

Heavyweight financials lost 1%, while metals led the losers among major sectors with a 1.9% drop.

Oil-to-telecom conglomerate Reliance Industries fell 1.9%, partly after MSCI announced a reduction of its weight in the flagship index as part of a periodic review.

Weakness in Indian markets this week was in contrast with other Asian markets, which were poised for their strongest week in two months. South Korea’s Kospi, a barometer for investor sentiment on the AI trade, jumped 11.5% during the week.

Friday’s movers

Tata Motors Passenger Vehicles shed 4.3% to be the biggest loser on the Nifty 50 after the carmaker’s quarterly profit slumped about 80% due to higher costs.

LG Electronics IndiaL jumped 9.6% after strong quarterly results and an affirmation of the full-year revenue target.

South Korean shares looked set to snap a seven-week decline on Friday, rising to their highest level in three weeks as chipmakers gained on AI optimism.

The benchmark KOSPI was up 55.55 points, or 0.82%, at 6,868.89 as of 0132 GMT, after rising as much as 2.9% earlier in the session.

The index cut gains on caution ahead of a public holiday on Monday.

It was the tech-heavy index’s fifth straight session of gains, rising 9.4% during the period, after losing almost 31% over the previous seven weeks. Market volatility has decreased in recent days.

The volatility index stood at 56 on Friday, versus a record high of 98 in late June.

The S&P 500 notched a record-high close on Thursday, fuelled by advances in technology stocks, as tame producer price inflation data supported expectations the Federal Reserve will not raise interest rates at its September meeting.

Among KOSPI heavyweights, chipmaker Samsung Electronics fell 0.37%, after rising more than 2% earlier, while peer SK Hynix gained 3.01%. Battery maker LG Energy Solution slid 1.37%.

Hyundai Motor and sister automaker Kia Corp were up 5.73% and up 1.97%, respectively. Steelmaker POSCO Holdings added 1.08%, while drugmaker Samsung BioLogics fell 1.09%.

Of the total 903 traded issues, 453 shares advanced, while 420 declined.

Foreigners were net buyers of shares worth 780.2 billion won ($550.81 million).

The won was quoted at 1,416.3 per dollar on the onshore settlement platform, 0.16% higher than its previous close at 1,418.6.

In money and debt markets, September futures on three-year treasury bonds gained 0.04 point to 103.33.

The most liquid three-year Korean treasury bond yield fell by 0.6 basis points to 3.774%, while the benchmark 10-year yield fell by 1.1 basis points to 4.282%.

The S&P/ASX 200 index lost 0.7% to 9,128.50 by 0028 GMT, on track for its largest weekly drop in nearly four months.

The benchmark lost 0.2% on Thursday.

Sentiment weakened after the US threatened to maintain a prolonged naval blockade of Iran, raising fears of disruptions to global oil supplies.

Back in Sydney, miners fell 2.8%, set for their largest weekly drop in a month, scuppered by a drop in metal prices.

BHP Group and Rio Tinto shed 3.8% and 2.4% respectively, while Fortescue lost 1.6%.

Gold stocks dropped 2.8% and were set for their largest one-day fall in two weeks, pressured by softer bullion prices.

Helping limit broader losses, technology stocks jumped 1.7%, tracking overnight gains on Wall Street, with sector heavyweights WiseTech Global and Xero gaining more than 4% each.

Banks edged up 0.1% in a week packed with three of the country’s major lenders reporting results.

Despite Friday’s gain, the sub-index was on track for its biggest weekly loss in three months. Shares of Westpac were up 0.3%.

The second-largest lender on Monday reported a 20% fall in mortgage applications and forecast investor housing credit growth to halve next year.

Commonwealth Bank of Australia on Tuesday reported a record annual profit, while ANZ flagged in its results that its home loan applications had slumped 12%.

Shares of both lenders were up 0.6% and 0.8% respectively on Friday.

All eyes are now on the last of the ‘Big Four’ banks, National Australia Bank’s third quarter results due next week.

Elsewhere, QBE Insurance tumbled 6% after Citi analysts said ex-catastrophe claims and expense ratios were higher than expected and underwriting profit missed estimates following the insurer’s full-year results.

In New Zealand, the benchmark S&P/NZX 50 index inched up 0.1% at 13,836.32.

China’s blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index dipped 0.2%.

Hong Kong benchmark Hang Seng declined 0.9%.

Analysts said caution ahead of interim earnings results kept investors on the sidelines, while the Unitree IPO drained some liquidity from the market.

In A-shares, real estate and healthcare sector led the decline, while communications and rare-earth shares outperformed.

In Hong Kong, property giant CK Asset lost more than 7% after the firm declared no special dividend despite strong mid-term earnings.

China’s widening cross-border tax collection has also weighed on sentiment, market participants said.

“Hong Kong financials have come under pressure following news that China may impose taxes on offshore insurance income, raising concerns over potentially tighter controls on offshore investments from mainland China,” Kelly Chung, chief investment officer for multi-assets at Value Partners, said in a note.

For both China and Hong Kong, worsening domestic demand and concentrated positioning remain headwinds, she added.

The smaller Shenzhen index was down 0.09%, the start-up board ChiNext Composite index was higher by 0.65% and Shanghai’s tech-focused STAR50 index was down 0.57%.‑Reuters

The benchmark Nikkei 225 rose 0.85% to 68,889.01 by the midday break, set for a 5% gain for the week.

The broader Topix gained 0.69% to 4,204.99, poised for a record high close.

US stocks rallied overnight after data showed July producer prices were unchanged, reinforcing expectations the Fed will hold rates steady next month.

The S&P 500 and the Nasdaq both closed at record highs.

“We are seeing a trend where the rise in US share prices is spilling over into Japan,” said Wataru Akiyama, an equities strategist at Nomura Securities.

“Factors such as lower crude oil prices and waning expectations for an early interest rate hike in the US due to slowing inflation are positive for the Japanese market as well.”

There were 145 advancers on the Nikkei 225 against 77 decliners and one unchanged.

The largest percentage gainers in the index were Shift, up 6.74%, followed by Nintendo, 6.59% higher, and Sony Group, which gained 5.35%.

The largest losers were Isetan Mitsukoshi Holdings, down 5.25%, set for its steepest one-day fall since December, followed by Ibiden, 4.08% lower, and Chugai Pharmaceutical, which lost 3.75%.

GIFT Nifty futures were at 24,428 points as of 7:30 a.m. IST, indicating a muted start for the Nifty 50, which closed at 24,395.85 on ​Thursday.

The Nifty 50 and BSE Sensex have dropped 0.7% and ​0.5%, respectively, this week as escalating tensions in the ⁠Middle East have outweighed strong earnings season and prospects that the ​Fed will hold rates steady in the near term.

The United States ​on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered.

Brent crude ​futures , however, dropped to $87 per barrel as higher inventories and ​lower global demand forecasts offset geopolitical concerns.

Foreign investors net sold Indian shares worth 5.11 ‌billion ⁠rupees ($53.54 million) on Thursday, as per provisional data. This was their third straight session of selling.

Meanwhile, U.S. producer price data, which was unchanged in July, further reduced expectations for a Federal Reserve rate hike ​next month.

Brent futures steadied at $87.03 per barrel after a drop on Thursday but were set for a 4% weekly gain, snapping a two-week losing streak, after the US threatened to ramp up economic pressure on Iran, including extending a naval blockade.

Markets have so far shrugged off the lack of progress in ending the Iran war, instead focusing on ​the broad AI theme and the global monetary policy outlook.

US inflation reports this week suggested pricing pressure remained under control, lowering the ​odds of a rate increase from the Federal Reserve next month.

Charu Chanana, chief investment strategist at Saxo, said ⁠risk appetite can hold for now because the immediate Fed hike risk has been repriced lower, noting softer oil is also helping.

“But this is still ​a headline-driven rally rather than a clean risk-on regime,” said Chanana. “Without clarity on the Middle East/Hormuz, another oil spike could quickly revive inflation and Fed ​concerns.”

In stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.28%, heading for a 2.7% weekly gain, its strongest performance since mid-June. Japan’s Nikkei was 1.5% higher, set for an over 5% gain for the week.

A puzzling feature of markets in recent months has been the growing disconnect between geopolitical uncertainty and asset price volatility, ​said John Sidawi, senior portfolio manager for fixed income at Federated Hermes.

“For now, markets appear willing to tolerate a significant amount of uncertainty without ​demanding higher risk premiums. However, this equilibrium is unlikely to be permanent,” Sidawi said.

“A meaningful escalation in conflict or a clear path toward resolution could finally force investors ‌off the ⁠sidelines, potentially triggering a much larger volatility response than current market pricing implies.”

Yen stuck in intervention loop

The yen was at 159.40 per US dollar, hovering close to the crucial 160 level that traders believe could trigger another bout of yen buying from Tokyo, after a joint intervention with the U.S. at the end of July failed to steady the frail currency.

Traders have since warmed to the idea that the Bank of Japan may at last start to support ​the yen, pricing in the prospect ​of a rate hike next month, ⁠although the risk now is that investors might come away from the September meeting disappointed if the BOJ is deemed not hawkish enough.

Padhraic Garvey, head of global rates and debt strategy at ING, said the yen’s weakness ​comes from “an uber-cautious Bank of Japan and a policy rate that remains too low,” noting the yen ​is back testing 160 ⁠levels as the underlying issues remain.

“This tension can be eased through rate hikes, and the sooner, the better,” said Garvey. “While that could be construed as negative for the economy, it’s also a choice. Prioritise the protection of the yen, or not?”

In commodities, gold was 0.8% down at $4,313 per ounce, as traders locked ⁠in profits ​after the yellow metal hit its highest level since early June in the previous session, ​due to dimming expectations of a near-term hike.

Traders are now pricing in a 35% chance of the Fed hiking next month, compared with 55% a week earlier, CME FedWatch tool showed. ​That led to a rally in US Treasuries although a lacklustre U.S. 30-year bond auction weighed.

Sandisk and Micron were among the top gainers on the benchmark index, rising 15 percent and 5.6 percent, respectively. The broader chip index added 1.8 percent and hit a nearly one-month high.

Technology stocks also boosted the Nasdaq, while the S&P 500 information technology index gained 0.9 percent, helped by modest gains in Microsoft, Nvidia and Apple.

“We’re starting to see broad-based earnings really pick up across sectors … where the value is not going to just solely be accrued to semiconductor and data center names, but now back into the actual model builders themselves,” said Josh Chastant, managing director of public markets at GuideStone.

“That direction of travel will be good for the overall broad AI trade.”

At 12:04 p.m. ET, the Dow Jones Industrial Average fell 96.14 points, or 0.18 percent, to 53,674.13, the S&P 500 gained 33.09 points, or 0.43 percent, to 7,781.59 and the Nasdaq Composite gained 153.18 points, or 0.58 percent, to 26,741.66.

Cisco Systems dropped 9 percent despite the networking equipment maker forecasting fiscal 2027 revenue above Wall Street expectations and bogged down the Dow.

Brent crude futures retreated 3 percent after six consecutive sessions of gains as investors assessed prospects for weaker global demand this year and higher US crude stocks.

Iran and the United States remain at loggerheads over efforts to agree on a permanent end to the war in the Middle East, according to a senior Iranian source, while traffic through the vital Strait of Hormuz remained severely curtailed.

US producer prices were unchanged in July as goods prices fell and the cost of services increased marginally, while the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable jobs market, data showed.

This follows benign July consumer inflation data that strengthened expectations that the Fed would hold interest rates steady at its next meeting.

Traders added to bets on a Fed interest rate hold next month, pricing in a 65 percent chance compared with 60 percent before the print, futures that settle to the Fed’s policy rate showed.

The Dow was hovering close to its record high, while the Nasdaq was around 1.6 percent below its own peak.

Robust earnings in several sectors, including technology, have provided the latest tailwind for US stocks after a rocky start to the second half of 2026.

Netflix added 3.3 percent after billionaire investor Bill Ackman unveiled a new holding in the streaming giant as part of Pershing Square’s biggest portfolio overhaul in years.

Tapestry shares plunged 14 percent after the Coach-owner forecast sluggish annual revenue growth.

PC makers Dell Technologies and HP gained 2.7 percent and 4 percent, respectively, after earnings from China’s Lenovo beat expectations.

Advancing issues outnumbered decliners by a 1.78-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and one new low, while the Nasdaq Composite recorded 129 new highs and 68 new lows.

Brent crude futures retreated 2.2% after six consecutive sessions of gains as investors assessed prospects for weaker global demand this year and higher U.S. crude stocks.

Iran and the United States remain at loggerheads over efforts to agree on a permanent end to the war in the Middle East, according to a senior Iranian source, while traffic through the vital Strait of Hormuz remained severely curtailed.

Tech stocks also boosted the Nasdaq, while the S&P 500 information technology index gained 1%.

Microsoft added 1.4%, Nvidia was up 0.6% and Apple added 0.5%, as investors flocked back to Big Tech stocks.

“The start of July was kind of a period of a rotation away from some of the areas of the market, such as tech, that have taken a backseat to some of the more cyclical-oriented sectors,” said Brock Weimer, analyst, investment strategy, Edward Jones.

Wall St gains as AI earnings lift tech, inflation data supports rate-hold bets

The market is showing little tolerance for companies that increase spending without a clear path to profitability, while rewarding those that can deliver results, he added.

Meanwhile, financial and healthcare stocks kept the Dow afloat.

At 10:09 a.m. ET, the Dow Jones Industrial Average rose 190.02 points, or 0.36%, to 53,960.29, the S&P 500 gained 56.52 points, or 0.73%, to 7,805.02 and the Nasdaq Composite gained 244.05 points, or 0.92%, to 26,832.54.

Producer price figures came in at 4.7%, below expectations of a 4.9% gain in July. This follows benign July consumer inflation data that strengthened expectations that the Fed would hold interest rates steady at its next meeting.

“I don’t think it’s really enough to sway the Fed one way or another just from this month’s data. But, it certainly doesn’t seem the energy price shock is having a meaningful transmission into other core categories of inflation,” said Weimer.

Traders added to betson a Fed interest rate hold next month, pricing in a 65% chance compared with 60% before the print, futures that settle to the Fed’s policy rate showed.

The Dow was hovering close to its record high, while the Nasdaq was around 1.5% below its own peak.

Robust earnings in several sectors, including tech, have proven to be the latest tailwind for U.S. stocks after a rocky start to the second half of 2026. They helped the Nasdaq recover from a 10% drop from its all-time high late in July.

Among stocks, Dow component Cisco Systems dropped 7.4% despite the networking equipment maker forecasting fiscal 2027 revenue above Wall Street expectations.

Tapestry shares plunged 15% despite the Coach-owner’s upbeat annual earnings forecast.

PC makers Dell Technologies and HP gained 2.5% and 4%, respectively, after earnings from China’s Lenovo beat expectations.

Separately, the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable jobs market, data showed.

Advancing issues outnumbered decliners by a 2.37-to-1 ratio on the NYSE and by a 2.16-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and no new lows while the Nasdaq Composite recorded 114 new highs and 52 new lows.

Iran and the United States remain at odds over a permanent settlement, with a senior Iranian source saying there had been no progress on reviving the interim agreement reached in June or setting a timetable for its implementation.

Hopes for a breakthrough were further dampened after U.S. President Donald Trump renewed his criticism of Iran’s leadership, while fresh attacks on shipping on Tuesday underscored the risks facing regional trade.

Iran controls and manages the Strait of Hormuz, the newly appointed Basij chief Taeb said on Thursday, rebutting Trump’s claim that the U.S. had “total control” of the strategic waterway. Taeb said Washington’s attempt to weaken Iran’s regional influence through another Hormuz conflict had failed.

A surprise rise in U.S. crude inventories, coupled with lower consumption forecasts from OPEC and the International Energy Agency, added to pressure on the energy outlook.

Saudi Arabia’s benchmark index was down 0.2%, with Sabic Agri-Nutrients Company losing 3.4%.

Elsewhere, oil major Saudi Aramco lost 0.5%.

Brent futures were down $1.54, or 1.7%, at $87.44 a barrel by 1140 GMT.

The kingdom’s crude exports from the Red Sea are becoming increasingly difficult to track as tankers disable their transponders to reduce the risk of Houthi attacks, with analysts saying all recent loadings from Yanbu have been carried out “dark.”

Dubai’s main share index eased 0.2%, hit by a 0.9% fall in blue-chip developer Emaar Properties.

In Abu Dhabi, the index added 0.3%.

The Qatari index fell 0.4%, weighed down by a 3% slide in petrochemical maker Industries Qatar .

Outside the Gulf, Egypt’s blue-chip index rose 0.4%, buoyed by a 5.1% jump in Telecom Egypt following a sharp rise in second-quarter profit.

The CSE All Share index settled up 0.56% at 21,539.

Samson International and LCB Finance were the top percentage gainers on the CSE All Share index.

Trading volume on the CSE All Share index rose to 76.7 million shares from 53.7 million in the previous session.

The equity market’s turnover rose to 2.78 billion Sri Lankan rupees ($8.3 million) from 2.06 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 657 million rupees, while domestic investors were net buyers, purchasing shares worth 2.74 billion rupees, the data showed.

Still-elevated crude prices also hurt sentiment on concerns over fiscal and current account balances as well as growth and inflation in Asia’s third-largest economy.

Iran and the U.S. remained at loggerheads over efforts to agree a permanent end to the war in the Gulf, Reuters reported on Thursday, citing a senior Iranian source, who said there had been no progress in talks to revive the interim deal agreed in June. Brent crude futures traded around $88 per barrel.

India’s Nifty 50 fell 0.16% to settle at 24,395.85 points and the BSE Sensex added 0.15% to 78,079.96.

The indexes were down 0.34% and 0.13% before the closing auction kicked in, with the 30-stock benchmarks demonstrating volatility on weekly expiry of derivatives.

“Elevated crude oil prices and weekly Sensex expiry-related positioning kept investors cautious despite a supportive global backdrop due to easing rate hike fears after U.S. inflation reading,” said Hariselvan Radhakrishnan, founder & CEO of HST Wealth.

Heavyweight financials and banks fell 0.4% each on concerns over potential margin hit from the Reserve Bank of India’s proposed loan-pricing rules.

Investec said draft rules would curb banks’ pricing flexibility, exposing loan yields and margins to volatile funding costs and quicker resets, clouding banks’ near-term earnings visibility.

Tata Group shares steadied after losing $4.6 billion on Wednesday, as investors assessed N. Chandrasekaran’s decision not to seek another term as Tata Sons chairman.

A panel will recommend the next chairman of India’s largest conglomerate, the charitable arm that controls the group said on Thursday.

Ten of the 16 major sectors declined. The broader small-caps and mid-caps rose 0.3% and 0.2%, respectively.

Bucking the trend, Tata Motors jumped 3.9% after reporting higher quarterly profit and forecasting firm demand.

The Nikkei rose 1.16% to 68,308.59, while the broader Topix rose 0.86% to a record high close of 4,176.04, extending gains to a seventh straight session.

The S&P 500 and the Nasdaq ended higher on Wednesday, lifted by upbeat quarterly results from CoreWeave and other AI infrastructure firms, while mild inflation data reinforced bets that the US Federal Reserve will hold interest rates steady in September.

The PHLX Semiconductor Index advanced about 2.5%.

“When the SOX index rises, Japanese chip-related shares follow, and Advantest is the symbol of that today,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities. Chip-testing equipment maker Advantest climbed 4.02%, while Ibiden, a supplier to AI bellwether Nvidia , was up 5.27%.

Murata Manufacturing, a leading maker of multi-layer ceramic capacitors (MLCCs) used to regulate power in AI servers, jumped 10.25%.

“What is different from previous rallies of Japanese stocks is that investors are buying both value and growth stocks.

That is supported by a strong corporate outlook,“ Shimada said.

Toppan Holdings jumped 10.78% to become the biggest percentage gainer on the Nikkei, after the printing and packaging firm said its first-quarter net profit more than doubled from a year earlier.

Banks, icons for value shares, rose, with Mitsubishi UFJ Financial Group and Mizuho Financial Group up nearly 3% each.

Of all the companies on the Topix, whose fiscal year ends in March, about 18% raised their annual recurring profit forecasts in the first quarter, compared with 2% which downgraded their forecasts, according to Shimada.

Of the more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 64% rose, 32% fell and 3% traded flat.

The pan-European STOXX 600 was up 0.2% at 660.49 points by 0714 GMT.

The benchmark STOXX 600 retreated from record highs in the previous session.

Britain’s FTSE 100 fell 0.3% even after data showed the UK economy unexpectedly expanded in June, offering some reassurance over the domestic growth outlook.

US inflation data came broadly in line with expectations, easing concerns over renewed price pressures and the prospect of further Federal Reserve rate hikes.

Still, sentiment in Europe remained subdued, with little progress in talks over the blockaded Strait of Hormuz and a US-Iran peace deal. On Thursday, oil prices declined after forecasters cut their outlook for global demand this year, citing the wider fallout from the Middle East war.

Europe’s energy sector was little changed.

Travel and leisure stocks gained 0.6% as lower oil prices improved the outlook for fuel costs.

Banking sector led the gains, rising 0.9%.

The European earnings season was entering its final stretch, with only a handful of companies left to report.

Maersk rose 8.3% after the Danish shipping group smashed profit forecasts and raised its full-year earnings guidance for a second time this year as the Middle East conflict and strong demand pushed freight rates higher.

Meanwhile, one Pakistani company has been removed from its FM Small Cap Index.

In the MSCI Frontier Markets Small Cap Indexes, one Pakistani company, i.e. Air Link Communications, has been added, while Biafo Industries has been deleted, stated MSCI in the note.

With the latest development, Pakistan now has 80 stocks in the MSCI FM Small Cap Index, said JS Global in a note.

Meanwhile, there was no change in the MSCI Frontier Markets Index for Pakistan.

As per JS Global, Pakistan has 109 stocks in the MSCI Frontier Markets Index.

MSCI adds 1 Pakistani co to Frontier Market Index, 3 to FM Small Cap Index 

These changes are to take effect from the close of August 31, 2026.

In September 2021, Pakistan was downgraded from its status as an emerging market, a little over four years after it was reclassified from the Frontier Markets (FM) Index by MSCI.

Back then, MSCI had said that while the Pakistani equity market meets the requirements for market accessibility under the classification framework for Emerging Markets, it no longer meets the standards for size and liquidity.

Hong Kong shares were roughly flat.

China’s blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.4%.

Hong Kong benchmark Hang Seng was up 0.1%.

Optical module leaders Eoptolink Technology, TFC Optical Communication, Zhongji Innolight rose 4.2%, 10.5%, and 5.5%, respectively, after US listed CoreWeave and Super Micro Computer posted upbeat forecasts that signaled booming demand for AI computing capacity.

The rally also came as US optical communication giant Lumentum gained nearly 14% in New York.

The 5G Communication Index and the tech-focused STAR50 Index rose nearly 3% and 2%, respectively.

China’s memory chip giant CXMT gained 1.3%.

Onshore financial shares held steady after China’s central bank said on Wednesday it would maintain an appropriately loose monetary stance and roll out practical, effective measures as needed, but stopped short of signaling explicit cuts to policy rates or banks’ reserve-requirement ratio.

Tech majors listed in Hong Kong edged up 0.3%.

Shares of Tencent Holdings fell 3.8% to a two- week low after the company reported a record quarterly negative free cash flow while raising its capital expenditure on AI investments.

“Investors are concerned that weak consumption trends may limit ad-load expansion and revenue growth, while AI investments may take longer to generate commensurate returns,” UBS analysts said in a note to clients.

Materials shares fell 3.6%, dragged by gold mining companies. China Gold International Resources slumped 5.9%.

The S&P/ASX 200 index fell 0.3% to 9,181.60 by 0040 GMT.

The benchmark ended 0.5% lower on Wednesday. Financials fell 0.2%, with Insurance Australia Group tumbling 5.4% after a drop in full-year cash earnings, hurt by lower investment income and rising claims expenses due to inclement weather.

But a 2.9% gain in ANZ Group helped limit losses in the sector, after the lender reported a slightly higher annual profit.

Peers Commonwealth Bank of Australia lost 2%, while Westpac and National Australia Bank added 0.8% and 1% respectively.

Miners lost 0.4%, hurt by a fall in metal prices.

Heavyweight Rio Tinto was down 2.6%, while peer South32 dipped 0.8%.

Countering losses, utilities gained 3.2% on the back of power producer Origin Energy. The company reported full-year underlying profit that slightly beat analysts’ estimates.

Among individual stocks, bourse operator ASX climbed up as much as 9.9%, logging its best session since mid-March 2020.

ASX reported a more than 5% rise in annual underlying profit, helped by heightened global market volatility that drove trading and post-trade activity.

Meanwhile, Treasury Wine Estates swung between gains and losses after the winemaker reported an annual loss after booking hefty write-downs on its US business.

On the dealmaking front, Cleanaway Waste Management surged 16.9% to mark its best session in 15 years.

The Melbourne-based waste solutions provider said it would grant EQT Infrastructure exclusive due diligence after receiving an A$9.4 billion ($6.63 billion) takeover offer.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.4% to 13,798.43.

The trading session reflected early buying interest followed by consolidation and a sharp late-session sell-off. The market opened on a positive note and climbed to an intra-day high of 181,433.85 points during the morning session.

The index then surrendered most of its early gains, moving largely sideways around the 180,700–181,000 level through mid-day and early afternoon amid mixed trading sentiment. Selling pressure intensified sharply during the final hours, dragging the index to its intra-day low of 180,035.92 points.

At close, the benchmark index settled at 180,104.61 points, down 206.60 points or 0.11%.

On Wednesday, PSX staged a recovery with the market gaining as buying resumed after two consecutive sessions of profit-taking. The market received a boost towards the close from reports of an extension of the US-Iran ceasefire. The KSE-100 Index closed at 180,311.22 points.

Internationally, Asian stocks rose on Thursday after US inflation data came in ‌as expected, dampening expectations of further near-term Federal Reserve rate hikes, while oil held near $80 a barrel as Washington and Tehran remained deadlocked over efforts to end the Gulf war.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.97%, led by South Korean shares jumping 4.4%. Japan’s Nikkei gained 1.86%, ​while S&P 500 E-minis were up 0.02%.

US consumer prices increased 0.1% in July, in line with expectations, data ​showed on Wednesday.

The small increase could weaken the argument for an interest rate increase ⁠from the Fed next month. Money markets are predicting a 40% chance of a rate hike, down from 54% a ​week ago, according to CME Group’s FedWatch.

Oil prices eased but remained elevated ​in Asia.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Thursday. The local unit closed the day at 277.65, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 891.33 million from 744.24 million recorded in the previous close.

The value of shares rose to Rs36.69 billion from Rs32.19 billion in the previous session.

Cnergyico PK was the volume leader with 247.07 million shares, followed by Beco Steel Ltd with 103.80 million shares, and Pak Refinery with 40.23 million shares.

Shares of 495 companies were traded on Thursday, of which 197 registered an increase, 269 recorded a fall, and 29 remained unchanged.

Stock-specific moves are likely to be in focus following MSCI’s index rebalancing announcement and ‌amid the ongoing quarterly earnings season.

GIFT Nifty futures were at 24,446 points as of 7:18 a.m. IST, indicating a muted start for the Nifty 50, which closed at 24,435.95 on Tuesday.

U.S. consumer prices barely increased in July, further reducing the ​likelihood of a Federal Reserve interest rate hike next month after soft jobs data released ​last week.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, led by ⁠a 4.4% jump in South Korean shares following the inflation data. MKTS/DATA

Lower interest rates in the U.S. can ​push Treasury yield and dollar lower, making emerging market equities such as India attractive for foreign investors.

India’s ​retail inflation data, released after market hours on Wednesday, showed consumer prices accelerated in July to 4.45%, but is still unlikely to push the central bank to hike interest rates over the next few months.

Oil prices fell 1% on Thursday ​as forecasters lowered global oil demand projections for 2026 because of the disruptions from the U.S.-Israeli ​war on Iran, though the supply constraints from the conflict provided a floor for the market.

Iran and the U.S. ‌remained at loggerheads ⁠over efforts to agree a permanent end to the war in the Gulf, Reuters reported on Thursday, citing a senior Iranian source, who said there had been no progress in talks to revive the interim deal agreed in June.

’Although Brent crude has eased modestly to below $89 per barrel, the unresolved situation ​in the Strait of ​Hormuz continues to keep ⁠the geopolitical risk premium in energy markets elevated,“ said Hariselvan Radhakrishnan, founder and CEO of HST Wealth.

Meanwhile, MSCI will add Laurus Labs, Lenskart, Adani Energy ​Solutions, and Groww to its flagship index, as part of a periodic review.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.97%, led by South Korean shares jumping 4.4%. Japan’s Nikkei gained 1.86%, ​while S&P 500 E-minis were up 0.02%.

U.S. consumer prices increased 0.1% in July, in line with expectations, data ​showed on Wednesday. The small increase could weaken the argument for an interest rate increase ⁠from the Fed next month. Money markets are predicting a 40% chance of a rate hike, down from 54% a ​week ago, according to CME Group’s FedWatch.

With August CPI data due before next month’s Federal Open Market Committee meeting and crude ​oil futures rising moderately since July, “both the Fed and markets will likely want to assess the data right up until just before the September FOMC,” said Den Miki, senior rate strategist at SMBC Nikko Securities, in a note.

Wall Street ended mixed overnight, with the Nasdaq Composite ​and the S&P 500 eking out small gains while the Dow Jones Industrial Average slipped.

Oil prices eased but remained elevated ​in Asia.

US crude fell 0.83% to $82.58 a barrel and Brent fell to $88.35 per barrel, down 0.71% on the day.

Iran and the ‌U.S. remained at ⁠loggerheads over efforts to agree a permanent end to the war in the Gulf, with talks to revive a June interim agreement making no headway and no timetable set for its implementation, a senior Iranian source said.

President Donald Trump said the US has “total control” over the Strait of Hormuz, a claim swiftly rejected by Iran, which said the route remained blocked.

Against the yen , the dollar softened ​0.06% to 159.32, amid growing speculation ​that the Bank of Japan ⁠would hike interest rates next month, earlier than the previously expected December timeline.

Those expectations were reinforced by Japan’s wholesale prices, which rose 7.2% in July from a year earlier, highlighting broadening price ​pressures.

The dollar index , which measures the greenback against a basket of currencies including the yen ​and the euro, ⁠was steady at 99.93.

The yield on benchmark US 10-year notes rose 0.62 basis points to 4.688%, from 4.682% late on Wednesday.

Reserve Bank of Australia Assistant Governor Christopher Kent said the three cash rate increases earlier this year were having their intended effects and ⁠would, over ​time, discourage spending.

Speaking at a Reuters NEXT Newsmaker event in Sydney, Kent said ​it would take “some time for tighter monetary policy to have its full effect on economic activity and inflation.”

The Australian dollar held broadly versus the greenback ​at $0.7062.

Spot gold rose 0.28% to $4,419.28 an ounce and spot silver gained 0.3% to $65.50 an ounce.

The Nikkei climbed 0.83 percent to close at 67,524.06, after swinging between gains and losses earlier in the session. The broader Topix ended 0.94 percent higher at 4,139.00.

All eyes are on the US Consumer Price Index, due later in the day, for clues to the direction of Federal Reserve interest rates.

Semiconductor-related shares, which weigh heavily on Japan’s benchmark Nikkei index, turned positive after a mixed start.

Memory chipmaker Kioxia gained 3.87 percent while chip manufacturing equipment maker Tokyo Electron added 2.61 percent. Tech-heavy South Korea’s index, which often moves in tandem with Nikkei, jumped 3.68 percent.

The S&P 500 information technology sector jumped 1.2 percent, leading sector gains on the benchmark index as investors bet on AI-fueled demand sustaining momentum.

CoreWeave surged 19 percent after the AI cloud company lifted its annual capital spending forecast and topped second-quarter earnings estimates.

Other AI infrastructure providers also rose, including data-center operators IREN and Applied Digital, which gained 7 percent and 3.4 percent, respectively. Neocloud company Nebius Group jumped 25 percent, helped by second-quarter results.

Super Micro Computer topped the S&P 500 with a 15 percent climb after the AI-server maker forecast fiscal 2027 revenue above Wall Street expectations.

Chipmakers gained, with Nvidia rising 2.6 percent and Micron Technology adding 6.4 percent. The broader semiconductor index advanced about 3.1 percent and was on track for its biggest one-day jump in more than a week.

“(AI trades) have more to run for good reason. There’s tremendous funding ahead and revenue scale for many… there’s further legs ahead. The demand for compute is at record highs,” said Eric Schiffer, chairman of The Patriarch Organization, a Los Angeles-based family office.

“You’re going to see continued signs and signals and deals and funding related to AI and AI has been powering this market.”

At 11:59 a.m. ET, the Dow Jones Industrial Average rose 9.21 points, or 0.02 percent, to 53,801.06, the S&P 500 gained 14.39 points, or 0.19 percent, to 7,742.59 and the Nasdaq Composite gained 102.48 points, or 0.39 percent, to 26,547.92.

The gains brought the tech-heavy Nasdaq within 2.2 percent of a record high. The S&P 500 and the Dow have already scaled peaks last week as upbeat earnings lifted sentiment.

Wall Street’s fear gauge, the CBOE Volatility Index, briefly touched a seven-month low and was last down 0.49 points at 14.79.

Investors also assessed US consumer prices data, which increased slightly in July, weakening the argument for the central bank to hike interest rates next month.

Traders are now pricing in a 62 percent chance of the Fed holding rates at its September meeting, according to CME’s FedWatch Tool. Before the data was released, they were split between a hike and no change.

Economic data, especially inflation figures, have drawn increased scrutiny as elevated energy prices due to the Middle East conflict raised rate-hike bets and Fed Chair Kevin Warsh stayed firm on muted forward guidance.

The situation in the Middle East remained volatile as a senior Iranian source said there had been no progress in talks to revive the interim deal agreed in June and define a timeframe to implement it, while shipping attacks continued.

In other stocks, Cava Group advanced 13.3 percent after the restaurant chain beat Wall Street expectations for second-quarter sales and core profit.

Lumentum Holdings added 15 percent after the photonic product maker forecast first-quarter revenue above analysts’ expectations and beat fourth-quarter estimates.

Advancing issues outnumbered decliners by a 1.4-to-1 ratio on the NYSE and by a 1.25-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and two new lows, while the Nasdaq Composite recorded 79 new highs and 74 new lows.