TSX and S&P 500 close at record highs as Fed rate-hike bets ebb - The Globe and Mail

• The AUD/JPY currency cross halted a three-day winning streak on Friday, trading around 111.30 during Asian market hours. • The Australian Dollar depreciated due to a surge in global safe-haven demand triggered by escalating tensions in the Strait of Hormuz.

• US stocks rose to end a winning week, with the Nasdaq jumping 1.3% on the day and 5% for the week, while the S&P 500 gained 0.6% and the Dow rose nearly 0.3%. • The rally followed a surprise July jobs report showing the US economy lost 23,000 jobs, significantly missing Bloomberg economists' expectations of 80,000 new positions.

• Wall Street futures declined ahead of the market open, with the S&P 500 slipping 0.6% and Nasdaq futures dropping 0.9%. • The downturn is primarily driven by weakness in big tech stocks and rising oil prices, which are impacting overall investor sentiment.

• U.S. stock futures are trading higher in pre-market activity, with the Nasdaq 100 rising 0.55% to $29,651, the S&P 500 up 0.23% to $7,752, and the Dow Jones Industrial Average remaining in the green at $54,063. • A rebound in the semiconductor sector is driving the optimism, with Sandisk advancing 2.6%, Micron increasing 1.27%, and AMD rising 0.7%.

• Asia Pacific equity capital markets reached record activity levels last month, driven by massive share sales from companies linked to artificial intelligence. • This surge in capital raising occurred despite overall weakness and volatility across the region's broader stock markets.

• The Sensex dropped over 200 points and the Nifty tested the 23,600 level on Friday as Indian stock markets opened lower. • Market volatility was driven by rising oil prices and investor concerns regarding Iran potentially closing the Strait of Hormuz.

• Investors are prioritizing balance-sheet quality for sector allocation during the current earnings season, favoring large-cap quality equities over speculative growth companies. • This shift puts significant pressure on highly leveraged businesses, with credit markets expected to differentiate more aggressively between strong and weak issuers if financing conditions tighten.

• The BSE Sensex fell 456 points and the NSE Nifty slipped below the 24,600 mark during trading on Friday, August 7. • The market decline was primarily driven by heavy selling in financial stocks, with Bajaj Finance identified as the biggest loser of the session.

• Europe's STOXX 600 index reached a fourth consecutive record close on Friday, driven by strong technology stocks and positive corporate earnings. • The rally was supported by a surprising U.S. nonfarm payrolls report showing that the American economy shed jobs last month.

• Record-breaking heatwaves across Europe are evolving from weather events into significant economic risks, impacting food prices and supply chains. • Investors are closely monitoring river levels, cooling demand, and catastrophe bonds as extreme temperatures pressure heavily indebted economies.

• U.S. equity markets experienced significant sector performance reversals during the first half of 2026. • The S&P 500 Information Technology and S&P 500 Energy sectors were specifically highlighted as areas of sharp volatility.