Weekly Market Update

Global Market News

Global Equities Gain

Global equities ended the week higher amid strong earnings reports and a weak July jobs report. The US 10-year Treasury note fell to 4.65% from 4.73% a week ago, and West Texas Intermediate crude fell to $83.55 per barrel. Volatility, as measured by futures contracts on the Cboe Volatility Index (VIX), moved to 14.9 from 18.6.

Updated Market Figures

U.S. Treasury Announces Bond Buyback Program

The U.S. Treasury has expanded its bond buyback program in a stated effort to improve liquidity and stability in the government debt market. Beginning September 9, the Treasury will at least double the size of its buyback operations for 10- to 30-year Treasury bonds, increasing the maximum amount purchased in each operation from $2 billion to at least $4 billion. Treasury officials say the move is designed to support trading conditions and demand for older bonds that are less actively traded than newly issued securities, rather than to reduce the national debt or directly target interest rates. The announcement comes after long-term Treasury yields climbed to their highest levels in nearly two decades, raising concerns about government borrowing costs and market volatility. Investors initially welcomed the move, with bond yields falling following the announcement, although analysts note that the buybacks do not address the larger drivers of higher rates, including persistent federal deficits and the substantial volume of new Treasury debt issuance.

International Developments

US Launches ‘Economic D-Day’ Package of Sanctions Against Iran and Its Allies

The Trump administration has unveiled a sweeping new sanctions campaign against Iran, dubbed “Operation Economic Outcast” and described by Treasury Secretary Scott Bessent as an “Economic D-Day” effort aimed at severing what he called every remaining economic lifeline sustaining the Iranian government. The package expands the use of secondary sanctions not only against Iran but also against foreign countries, companies, banks, shipping operators, and technology providers that continue doing business with Tehran, with nearly 60 entities, individuals, and vessels targeted in the opening round and additional penalties threatened against Iranian trade partners. Officials say the strategy is designed to isolate Iran from the global financial system, restrict access to shipping, digital assets, technology, and energy markets, and force other nations to choose between commerce with Iran and access to the U.S. financial system. While the administration has not yet specified which countries could face the harshest penalties, the measures are widely seen as aimed in part at major Iranian trading partners, including China, and represent a significant escalation of Washington’s economic pressure campaign amid ongoing tensions and stalled negotiations with Tehran. Iranian officials have condemned the initiative as economic warfare and vowed retaliation, arguing that the country has prepared contingency plans to withstand the new restrictions, while analysts note that the ultimate effectiveness of the campaign will depend on how aggressively the United States enforces sanctions against third-country actors that continue facilitating Iranian trade.

Violent Gangs Commit Massacre near Port-au-Prince

A major gang massacre in Haiti this week has underscored the country’s deepening security crisis after heavily armed members of the Viv Ansanm gang coalition attacked the hillside community of Kenscoff, near Port-au-Prince, killing at least 47 people, injuring more than 20 others, and kidnapping over 50 residents in what appears to be one of Haiti’s largest mass abductions in recent years. According to the United Nations, 22 victims were reportedly executed in a church compound where they had sought refuge, while gang members also burned homes, destroyed property, and terrorized civilians throughout the community. The exact death toll remains disputed, with some Haitian authorities reporting lower figures due to difficulties accessing the area and accounting for victims, but international organizations have condemned the attack as one of the deadliest incidents of gang violence this year. The assault has shattered hopes that security conditions were improving amidst preparations for the island nation’s first election in more than a decade and has intensified pressure on the Haitian government, police, and the multinational security mission supporting law enforcement efforts. Human rights groups, the United Nations, and religious leaders have called for urgent action to protect civilians and secure the release of hostages, warning that the massacre highlights the continuing expansion of gang control and the inability of state institutions to safeguard vulnerable communities.

Flooding in Nepal and Tibet

A catastrophic glacier-induced flood has devastated communities along the Nepal-Tibet border after a massive collapse of glacier ice and rock high in the Himalayas triggered an avalanche, temporarily dammed a river, and then unleashed a destructive surge of water, mud, and boulders through the Bhote Koshi-Trishuli river system. Authorities report hundreds of deaths and more than 1,300 people missing, while rescue efforts are being hampered by destroyed bridges, washed-out roads, damaged hydropower facilities, and the remoteness of the affected mountain terrain. Initial reports suggested an earthquake had caused the disaster, but subsequent analysis by the U.S. Geological Survey and other experts concluded that the seismic signal was generated by the glacier collapse itself, which registered as a magnitude-5.2 event. Satellite imagery indicates that a large section of glacier and rock broke away from a slope more than 5,000 meters above sea level, sending debris into the Lhende Khola watershed and causing downstream water levels to rise dramatically within minutes. Scientists say the disaster underscores growing concerns about the vulnerability of the Himalayan cryosphere, where glacier retreat and instability linked to climate change are increasing the risk of catastrophic floods that can cross national borders and threaten communities, infrastructure, and economic development throughout the region.

US Social & Political Developments

Collapse of Bilateral Trade Negotiations Between the US and Canada Leads to Escalating Trade War

Trade talks between the United States and Canada collapsed late Friday, days after President Trump had announced a “DEAL” on social media and granted a three-day extension. Canadian Prime Minister Mark Carney said he suspended talks because the American side introduced last-minute terms that were “unfair, uneconomic, and called into question the reliability of any deal.” U.S. Trade Representative Jamieson Greer countered that Canada walked away from an offer of “the best treatment of any major exporter” to the U.S. market. As a result, 50 percent tariffs on about $20 billion of Canadian goods took effect after midnight under Section 338, a Depression-era provision never previously invoked. Carney said Canada would respond with dollar-for-dollar countertariffs on U.S. steel, dairy and appliances starting September 8. The standoff threatens the roughly $900 billion annual U.S.-Canada trade relationship and raises fresh questions about the USMCA’s future. Trump escalated the spat further on Thursday, signing a directive to rename Lake Ontario “Lake America,” telling reporters Canada “want[s] to be treated like they’re a state, and so we just can’t do that anymore” — a move Canada is virtually certain to reject.

Federal Judge Allows USPS to Proceed With Mail Voting Restrictions, For Now

Judge Indira Talwani lifted a nationwide injunction Wednesday that had blocked President Trump’s executive order directing the Postal Service to track mail-in ballots and potentially reject those from voters not on a federal eligibility list, after the Supreme Court ruled 6-3 Monday that she had acted too hastily in an earlier, similar case. The Supreme Court did not rule on whether the underlying policy is lawful. Talwani noted the challengers still have “substantial arguments that might persuade the Supreme Court to reach a different result” and set a Thursday noon deadline for the government to respond to a request to immediately block the finalized Postal Service rule. Separately, a coalition of Democratic state attorneys general and the League of Women Voters filed updated lawsuits arguing that Congress, not the executive branch, sets election rules, and the Justice Department has acknowledged that mismatches in federal voter data could cause eligible voters to be wrongly flagged as noncitizens. Talwani combined the pending cases and scheduled a September 3 hearing, with a further emergency ruling possible within days.

Corporate/Sector News

Meta reaches $17 billion settlement with states over ‘addictive tech’ lawsuit

Meta has reached a landmark settlement with a broad coalition of states over allegations that Facebook and Instagram were designed with addictive features that harmed young users and contributed to worsening mental health outcomes among children and teenagers. Under the agreement, which is valued at up to roughly $17 billion and is among the largest settlements ever reached with a technology company, Meta will implement sweeping changes to its platforms, including hard daily usage limits for minors, nighttime restrictions on access, stronger age-verification measures, expanded parental controls, limits on notifications during school hours and overnight, and new options allowing young users to opt out of algorithmically driven feeds. The settlement also requires Meta to reduce the influence of certain engagement-maximizing features that regulators argued encouraged excessive use, while providing states with funding intended to support youth mental health and education initiatives. State attorneys general described the agreement as a potential blueprint for future regulation of social media companies, suggesting that similar child-safety standards could eventually be applied to competitors such as TikTok, Snapchat, and YouTube. The deal represents one of the most significant government efforts to date to address concerns that social media platforms have knowingly prioritized user engagement over the well-being of minors and signals a broader shift toward stricter oversight of how technology companies design products for children.

FDA approves first drug to treat advanced pancreatic cancer

The FDA has approved Rasonque (daraxonrasib), a first-in-class targeted therapy for metastatic pancreatic adenocarcinoma, marking what many researchers are calling one of the most significant advances in pancreatic cancer treatment in decades. The once-daily oral drug targets RAS/KRAS-driven tumor growth, a pathway involved in more than 90% of pancreatic cancer cases that scientists had long considered difficult, if not impossible, to treat directly. In a Phase 3 clinical trial involving 500 patients whose cancer had progressed after prior treatment, daraxonrasib nearly doubled median overall survival to 13.2 months, compared with 6.7 months for patients receiving standard chemotherapy, while also producing fewer severe side effects. The approval applies to adults with advanced metastatic pancreatic cancer who have previously received systemic therapy or are not candidates for intensive chemotherapy. Experts have described the decision as a landmark moment for a disease that remains among the deadliest forms of cancer, with roughly 67,000 new U.S. cases and more than 52,000 deaths annually. While physicians caution that the drug is not a cure, they say it offers a meaningful new treatment option and could open the door to a broader generation of RAS-targeted cancer therapies.

Nvidia beats on earnings… again

Nvidia’s quarterly profit more than doubled to $59.69 billion, with revenue more than doubling to $96.22 billion, both topping Wall Street’s estimates of $50.94 billion and $91.96 billion, respectively. CEO Jensen Huang said “A.I. has reached its inflection point,” and the company projected 90 percent revenue growth for the current quarter to $108 billion, with about 70 percent growth expected next fiscal year even as it remains “supply-constrained.” Data center revenue, more than 90 percent of sales, rose 117 percent to $89 billion, and Nvidia and Amazon announced a deal for two million additional chips on Amazon’s cloud service. The results and forecast sent Nvidia shares up as much as 8.5 percent and lifted other AI-linked stocks, with CrowdStrike and Salesforce also posting strong AI-driven results. Some investors, however, questioned whether Nvidia’s own financing arrangements for customers were inflating apparent demand for its chips.