Wall Street shrugs off global slump as Trump promises (yet another) imminent deal with Iran

fortune.com Aug 3, 2026

Wall Street shrugs off global slump as Trump promises (yet another) imminent deal with Iran

Curated by Shubham · TechCapsules · Aug 3, 2026

AI-summarised brief · reviewed before publication

Wall Street opened higher despite a broad global market decline, with S&P 500 futures up 0.49% and the index having risen 0.7% the previous session. European indices showed modest gains, while Asian markets were mixed, highlighted by a 5.12% drop in South Korea’s KOSPI. Energy prices slipped, Brent crude trading at $83 a barrel, and Bitcoin hovered around $62,585. Investors focused on upcoming U.S. earnings, notably Palantir, SpaceX and AMD, and on a slate of labor reports that could influence the Federal Reserve’s September rate decision, which markets now price at a 65% probability. Meanwhile, Joby Aviation announced that its electric vertical take‑off and landing (eVTOL) air taxis will begin pilot cargo and passenger operations this summer, promising 10‑minute trips between Manhattan and JFK at roughly current taxi fares.

💡 Why It Matters

· The convergence of earnings hype, Fed‑rate expectations, and the imminent rollout of eVTOL services could reshape investor sentiment and commuter behavior simultaneously.

Read full article on fortune.com

Sunday Reboot: Tons of money, but way more grief

Apple reported record-breaking third-quarter revenue, marking its ninth consecutive quarter of year-over-year growth with approximately 16% increases from Q1 to Q3 2026. Despite these financial successes, the company’s stock price plummeted from $338.45 to $308.03 within an hour of the earnings release. CEO Tim Cook delivered a farewell speech ahead of his transition to John Ternus, attributing supply constraints to incredibly strong consumer demand rather than supplier issues. Major financial institutions reacted negatively to the results. Goldman Sachs and Morgan Stanley both lowered their price targets, citing inability to meet next quarter’s demand and slower-than-expected Services growth. Rosenblatt raised its target but maintained a bearish outlook due to volatile financial conditions. Analysts criticized the iPhone 18’s potential performance, arguing that the iPhone 17’s success creates a high bar for future growth. JP Morgan also cut its target, noting that limited product availability would defer revenue. The market’s reaction highlights a disconnect between Apple’s massive profitability and investor expectations for sustained, aggressive expansion across all business units.

💡 The market’s rejection of record profits exposes an unsustainable expectation for perpetual hyper-growth, punishing Apple for supply constraints caused by overwhelming consumer demand. This volatility suggests investors are prioritizing short-term margin expansion over the company’s ability to fulfill orders, creating a paradox where success becomes a liability.

siliconangle.com · Aug 3

Eric Trump-backed Space-Eyes to go public via $638M SPAC merger

Space-Eyes, a Miami-based defense technology startup, plans to go public through a merger with McKinley Acquisition Corp, valuing the combined entity at approximately $638 million. Eric Trump, who recently became the third-largest private investor, will serve as a strategic adviser following the transaction. The company, led by CEO Jatin Bains, develops artificial intelligence systems for counter-drone warfare and geospatial intelligence. Despite generating only about $1 million in annual revenue, Space-Eyes is negotiating contracts worth roughly $35 million over five years. Current deployments include monitoring drug trafficking in the Caribbean and preventing contraband smuggling in U.S. prisons. Post-merger, the firm intends to scale operations using third-party manufacturers to compete for government and corporate clients globally. Key products include SeaWatch for maritime intelligence and Morpheus for autonomous aerial threat mitigation.

💡 The merger validates a high-valuation exit for a pre-revenue AI defense firm, signaling investor appetite for counter-drone technology despite minimal current earnings. Eric Trump’s involvement bridges political security expertise with commercial defense contracting, potentially accelerating government adoption of private-sector surveillance solutions.

financialexpress.com · Aug 3

The Rs 28,000-Cr AI push: Meet the 2 infra stocks powering India’s…

India’s AI infrastructure market is projected to surge from ₹11,540 crore in FY26 to ₹28,290 crore by FY30, driven by the government’s IndiaAI Mission and a data centre pipeline reaching 8.33 gigawatts. E2E Networks, a key sovereign cloud GPU provider, is central to this expansion. The company scaled its GPU fleet from 1,900 to 5,100 units by Q1FY27, with 1,024 additional NVIDIA B200 GPUs planned. This capacity expansion drove Q1FY27 operating revenues up 334.3% year-over-year to ₹156.8 crore. E2E reported a significant turnaround, achieving ₹43.9 crore in profit compared to a ₹2.8 crore loss in the prior year. EBITDA surged 1,022.8% to ₹117.9 crore, with margins expanding to 75.2%. The company attributes this growth to high utilization rates and operational leverage. Strategic partnerships, including one with L&T, and international clients contributing 37% of revenue, further support E2E’s positioning within India’s rapidly growing indigenous AI ecosystem.

💡 E2E Networks’ rapid profitability shift demonstrates that India’s sovereign AI infrastructure is moving from theoretical investment to tangible commercial success. This validates the economic viability of domestic compute capacity, reducing reliance on foreign cloud providers for critical national AI projects.

fool.com.au · Aug 3

What were the best and worst-performing ASX ETFs in 2026?

InvestSMART data reveals significant volatility in the ASX ETF market for 2026, driven by a sharp divergence between artificial intelligence and cryptocurrency sectors. While AI and technology funds surged, cryptocurrency products collapsed. The Digital Bitcoin ETF, the top performer in 2025, plummeted 48.4% in 2026, ranking among the worst. Similarly, the Van Eck Bitcoin ETF fell 48%, placing 384th out of 387 ETFs. Conversely, AI-linked funds dominated the top rankings. The iShares MSCI South Korea ETF led with a 170.8% return, followed closely by the Global X Semiconductor ETF at 160.8%. This performance reflects strong demand for semiconductors from industry leaders like Samsung and TSMC. Gold miners also performed well, with the Betashares Global Gold Miners ETF returning 49.0%. The Vanguard MSCI Index International Shares ETF remained the most popular, attracting $3.8 billion in inflows. These results highlight a clear shift in investor preference toward technology and critical minerals, while digital assets and gaming sectors faced substantial declines compared to the previous financial year.

💡 The collapse of crypto ETFs alongside the surge in semiconductor funds signals a decisive rotation away from speculative digital assets toward tangible industrial infrastructure. Investors are prioritizing the physical hardware powering the AI revolution over volatile digital currencies.

newsbreak.com · Aug 3

Wall Street Questioned the AI Boom, Earnings Are Delivering: Here Are the…

Artificial intelligence companies are driving record earnings surprises, significantly outperforming the broader market during the second quarter. Data from The Kobeissi Letter reveals that S&P 500 firms beat estimates by an average of 27%, while Nasdaq 100 companies exceeded expectations by 55%. Companies within Bloomberg’s AI Value Chain Index led the surge, beating estimates by approximately 71%. Major technology firms like Microsoft and Amazon are reinforcing this trend by increasing capital spending on AI infrastructure, citing demand that continues to outpace available capacity. Microsoft reported accelerating Azure growth, and Amazon raised its 2026 capital spending target to $220 billion following strong AWS performance. Investors are closely monitoring upcoming earnings from Advanced Micro Devices, Palantir Technologies, and SpaceX. Consequently, exchange-traded funds tracking these sectors, including the Invesco QQQ Trust and iShares PHLX SOX Semiconductor Sector Index Fund, have seen substantial asset growth and positive year-to-date returns, reflecting sustained investor confidence in the AI ecosystem’s financial viability and future expansion potential.

💡 The widening gap between AI-specific earnings beats and general market performance validates the massive capital expenditure cycle currently underway. This divergence suggests that early skepticism regarding AI profitability is being replaced by tangible financial results, potentially reshaping long-term investment strategies toward infrastructure-heavy tech sectors.

cleantechnica.com · Aug 2

Is China Winning On AI Because It Just Has A Better Approach…

A recent analysis contrasts the divergent business models driving artificial intelligence development in the United States and China, suggesting structural differences may determine long-term industry success. While US firms like OpenAI and Anthropic pursue high-margin monopolies to satisfy profit-focused investors, Chinese startups operate in a highly competitive environment prioritizing customer loyalty and scale. This distinction mirrors historical patterns in solar and electric vehicle sectors, where China encouraged multiple providers to maintain low prices and rapid innovation. The Anglo-Saxon model relies on eventual market consolidation and price increases, whereas the Chinese system sustains competition to benefit the general public through lower costs. As Western nations erect trade barriers to protect domestic investors, Chinese companies continue to expand by catering to public preference. The article posits that this fundamental difference in investor expectations and market structure could explain why China appears to be gaining an edge in the global AI race, despite the massive capital expenditures currently facing potential bubble risks in the West.

💡 The contrast reveals that US AI investment prioritizes investor returns over consumer value, potentially stifling the widespread adoption and price competitiveness seen in China’s model. This structural divergence suggests Western firms may struggle to match the agility and public appeal of Chinese competitors who are forced to innovate continuously to retain market share.