Key global financial headlines from overnight and this morning include:
Positive signals from Qatar and the US bring a potential US-Iran agreement on the Strait of Hormuz into focus. Canadian imports from the US hit a record high, driven by data center construction. SpaceX delivered its first quarterly report as a public company, showing a 92% revenue surge, though its stock is set for a massive unlock. Advanced Micro Devices reported a 50% revenue increase for Q2, but its stock dropped over 8% in after-hours trading. Treasury Secretary Bessent defended Fed Chair Kevin Warsh, stating the market is undergoing a "detox" from excessive central bank guidance. OPEC's oil production increased last month, led by Gulf states.
Potential US-Iran Pact on Hormuz Nears, Oil Prices Slide
On Tuesday, the likelihood of a temporary agreement between the US and Iran focused on the Strait of Hormuz appeared to be growing. Qatar indicated a proposal has been drafted, while US officials expressed optimism about reaching a deal to restore navigation through the critical waterway. Oil prices reversed earlier gains, and US Treasuries rose, as markets grew optimistic that mediators could broker an agreement and avoid a new round of US airstrikes. Brent crude fell for a second consecutive day, dropping over 5% to below $80 per barrel for the first time since mid-July. According to diplomatic sources speaking anonymously due to the sensitive nature of the talks, Iran is considering allowing European nations to clear mines from the Strait of Hormuz, a potential concession that could be part of the agreement.
Canadian Imports from the US Hit Record High on Data Center Boom
Canada's imports from the US reached a record high in June, driven by a surge in imports of computer components used in data centers. The country is actively expanding its artificial intelligence infrastructure. Statistics Canada reported on Tuesday that an increase in imports of electronic and electrical equipment and parts led to a rise in total Canadian imports, even as imports fell in nine out of eleven product categories. Imports of computers and peripherals jumped 59% in June, primarily due to an increase in processors for data centers imported from the US.
SpaceX's First Post-IPO Report: Revenue Surges 92% to $7.8 Billion, AI Losses Narrow, Trillion-Dollar Stock Unlock Looms
On Tuesday after the market close, SpaceX released its first quarterly earnings report since its historic IPO in June. The results for the second quarter of fiscal 2026 significantly beat Wall Street expectations for both revenue and EBITDA. The company's AI division also showed a sharp narrowing of its operating losses, demonstrating strong business generation and cost control. Before this highly anticipated report, SpaceX shares had experienced a volatile period following its $86 billion capital raise. The stock was hit hard by post-IPO turbulence and a global sell-off in the AI sector, losing over $1 trillion in market value from its peak and costing Elon Musk the title of world's richest person.
AMD Q2 Revenue Up 50%, Data Center Sales Double, Stock Falls Over 8% After Hours
Advanced Micro Devices reported second-quarter earnings on Tuesday that exceeded expectations, but the stock fell sharply in after-hours trading following a gain during the regular session. AMD's Q2 revenue grew 50% year-over-year to $11.536 billion, surpassing the consensus estimate of $11.3 billion and setting a new record. Non-GAAP earnings per share came in at $1.66, above the anticipated $1.62. The company's gross margin reached 56%, and net profit was $2.76 billion. AMD forecast third-quarter revenue of approximately $13 billion, plus or minus $300 million, which is higher than the analyst estimate of roughly $12.5 billion, though it did not fully satisfy investor expectations.
Treasury Secretary Bessent Defends Fed Chair Warsh, Says Market in 'Detox' From Over-Guidance
US Treasury Secretary Scott Bessent stated on Tuesday that he is not convinced interest rate hikes are necessary. Bessent came to the defense of the embattled Federal Reserve Chair Kevin Warsh, arguing that the market's poor reaction to Warsh's recent press conference only indicates traders are adapting to the central bank's reduced "hand-holding" guidance. "I think it's a 'detox' for both the financial markets and financial journalists," Bessent said in an interview, adding that Warsh is wise to avoid providing "forward guidance" or explicitly stating the likely direction of interest rates. He said that approach was partly responsible for the inflation surge five years ago and would make it difficult to change policy direction if needed. "I started on Wall Street in 1984, and you never knew what the Fed was going to do. You had to position yourself accordingly," Bessent said in the interview.
OPEC Oil Output Rises in July, Led by Gulf States
According to a survey, crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) recovered further last month from some of the losses suffered during the war. Output increased in Kuwait, Saudi Arabia, and Iraq, although opaque shipping data complicates the tracking of the group's production. The survey showed OPEC's crude output rose by 1.16 million barrels per day in July to an average of 19.44 million bpd, with nearly all of the increase coming from the three Gulf states. However, total OPEC production remains significantly below pre-war levels, as the ongoing conflict in Iran continues to disrupt shipping in the Persian Gulf and Red Sea transport remains at risk. Part of the July production increase may also be attributed to higher domestic consumption. Middle Eastern oil producers typically boost output in the summer to meet surging electricity demand for air conditioning, with some crude going directly to power generation.
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