Global Markets Highlights — Aug 4, 2026 | Aivina
August 4, 2026
Global financial markets displayed mixed performance this week. US equities, particularly the tech sector, achieved record highs driven by AI optimism, while European markets experienced significant declines due to political uncertainty in France. Bond yields fluctuated, initially falling on softer US inflation data before rising after the Federal Reserve's hawkish outlook for future rate cuts. Central banks are on diverging paths, with the ECB cutting rates, the Fed signaling fewer cuts, and the BoJ hinting at future quantitative tightening.
Highlights
- US tech stocks surged; S&P 500, Nasdaq hit new records; AI optimism drove gains.
- European markets declined sharply; French political uncertainty sparked sell-off; broader Eurozone wavered.
- Bond yields fluctuated; soft US CPI initially lowered yields; Fed's hawkish outlook reversed trend.
Macro Overview
Inflation
US CPI softened unexpectedly. Eurozone inflation remains sticky. China faces persistent deflationary pressures.
Interest Rate Outlook
Fed signaled one 2024 cut, hawkish shift. ECB cut rates. BoJ indicated future bond reduction.
Risk Sentiment
neutral
This content is generated by AI for informational and educational purposes only and does not constitute financial advice.