Category: Market Summary

UK equities traded modestly higher on Friday as higher oil prices continued to support energy stocks, while fresh data from Lloyds highlighted renewed pressure on mortgage borrowers following the recent escalation in the Middle East.

By 03:30 ET (07:30 GMT), the FTSE 100 was up 0.22%. Elsewhere in Europe, Germany’s DAX advanced 0.33% and France’s CAC 40 gained 0.26%. Sterling weakened slightly against the US dollar, with GBP/USD slipping 0.07% to 1.3449.

Hormuz Shipping Slump Keeps Energy Markets on Edge

Investors remained focused on developments in the Strait of Hormuz after shipping activity fell sharply. Reuters, citing Kpler data, reported that only 33 vessels transited the waterway between Monday and Thursday, compared with 50 during the same period a week earlier. Just six crude oil tankers departed the strait during the week, while traffic through the Bab al-Mandeb route increased to 26 vessels on Thursday, indicating that some shipping is being redirected.

The disruption followed explosions near Iran’s Qeshm Island on Thursday evening, which the semi-official Fars news agency linked to reported military strikes. Brent crude surged almost 4% in the previous session before extending gains on Friday.

Diplomatic Tensions Continue to Influence Markets

Political developments remained mixed. Iranian Parliament Speaker Mohammad Bagher Ghalibaf criticised the United States, writing on X that “using bullying + broken promises + fake news as leverage is a failed strategy,” describing Washington’s approach as “theater diplomacy.”

Mohit Kumar, an analyst at Jefferies, said investors could become “desensitized to the Middle East, as long as oil stays around of below $80,” arguing that broader market fundamentals remain supportive thanks to a resilient US labour market and strong global liquidity.

However, Kumar identified higher US government bond yields as the primary concern, calling 10-year Treasury yields near 4.70% the “biggest worry.” He noted that oil prices between $75 and $80 remain around 25% to 30% above pre-conflict levels, warning this would “feed into inflation globally.”

He also suggested that a potential agreement between Iran and Oman over shipping in the Strait of Hormuz would be unlikely to satisfy Washington because it would effectively hand Iran greater control over the strategic waterway. Referring to reports that Tehran wants to restrict US and Israeli vessels from using the strait, Kumar said “we are still some distance from a deal.”

Reuters separately reported that any reopening of the Strait of Hormuz may require concessions from Washington, as the United States opposes any arrangement granting Iran control or the right to collect transit fees, while Tehran continues to insist on retaining influence over the route.

Meanwhile, US President Donald Trump acknowledged that certain American weapons stockpiles were “a little bit tighter” than others, while dismissing reports that the ongoing five-month conflict had significantly depleted US military supplies. His comments followed media reports, denied by the White House, that he had questioned Defence Secretary Pete Hegseth over ammunition levels.

Lloyds Reports Slower UK House Price Growth

In the UK, Lloyds’ latest House Price Index showed property prices were unchanged in July after rising 0.2% in June. The average UK home was valued at £299,253, while annual house price growth slowed to 0.1%, the weakest reading since November 2023.

“The UK housing market remained steady in July, with the average property price effectively unchanged over the month,” said Amanda Bryden, Head of Mortgages at Lloyds. She added that mortgage rates “have edged higher again after easing earlier in the summer” following the recent escalation in Middle East tensions.

Oil and Gold Extend Gains

Oil prices continued to move higher, with Brent crude rising 0.70% to $83.08 a barrel and US West Texas Intermediate adding 0.36% to $77.57.

Safe-haven demand also lifted precious metals. Gold futures climbed 1.04% to $4,345.47 an ounce, while spot gold gained 1.1% to $4,286.50.

UK Corporate News

• JD Sports (LSE:JD.) has appointed former IKEA chief executive Peter Agnefjäll as its new chair, with the appointment taking effect on 1 September.
• Goodwin (LSE:GDWN) is in discussions over the sale of its defence business following order delays, according to a report by the Financial Times.

U.S. equity futures traded close to flat on Thursday as investors adopted a cautious stance ahead of Friday’s closely watched July employment report, which is expected to provide fresh guidance on the outlook for Federal Reserve interest rate policy.

With one of the week’s most important economic releases still to come, traders appeared reluctant to place aggressive bets at the opening bell.

Weekly jobless claims remain lower than expected

Ahead of Friday’s payrolls release, the Labor Department reported that initial jobless claims rose modestly during the week ended August 1.

New unemployment benefit claims increased to 199,000 from the prior week’s revised 198,000. The figure was below economists’ expectations of 202,000, indicating that layoffs remain subdued and the labour market continues to show resilience.

Markets are forecasting that the U.S. economy added 88,000 jobs in July, following an increase of 57,000 in June.

SanDisk slides despite earnings beat

Technology stocks were set for a weaker start after SanDisk (NASDAQ:SNDK) dropped roughly 10% in pre-market trading.

The memory chip manufacturer reported quarterly results ahead of expectations, but investors focused instead on guidance that fell short of the market’s elevated expectations.

Wednesday’s rally loses momentum

Wall Street initially extended its recent gains on Wednesday before sellers emerged later in the session.

The Dow Jones Industrial Average closed up 263.24 points, or 0.5%, at 54,349.12. Meanwhile, the S&P 500 slipped 0.2% to 7,723.55 and the Nasdaq Composite lost 0.8% to finish at 26,363.44.

The pullback followed four consecutive sessions of gains that had pushed both the Dow and S&P 500 to record highs.

AI-related names remain under pressure

Investor sentiment toward AI-related companies weakened after SpaceX (NASDAQ:SPCX) reported higher-than-expected revenue but disclosed a sharp rise in capital expenditure, sending its shares down 13.6%.

Advanced Micro Devices (NASDAQ:AMD) also fell 7%, despite delivering stronger-than-expected quarterly earnings.

Disney and healthcare stocks provide support

Disney (NYSE:DIS) helped support the Dow after climbing 3.7% on stronger-than-expected quarterly results.

Amgen (NASDAQ:AMGN) advanced 4.6%, while Nvidia (NASDAQ:NVDA) gained 3.4%.

ADP points to softer hiring

Private payroll processor ADP reported that private-sector employment increased by 44,000 jobs in July, below economists’ forecasts of 75,000.

June’s figure was revised down to 95,000 from 98,000.

Energy weak, gold miners rally

Falling crude prices weighed on energy shares, with the NYSE Arca Oil Index declining 3% and the Philadelphia Oil Service Index falling 2.5%.

Gold miners outperformed as bullion prices strengthened, lifting the NYSE Arca Gold Bugs Index 7.6% to its highest close in more than a month.

European equity markets reached new record levels on Thursday as investors drew support from robust corporate earnings, optimism surrounding negotiations linked to the Strait of Hormuz, and stronger-than-expected economic data from Germany.

According to Destatis, German factory orders rose 3.1% month over month in June, significantly above the revised 0.3% increase recorded in May and well ahead of economists’ expectations for a 0.5% gain. On an annual basis, new orders accelerated to 6.5%, compared with 4.5% in the previous month.

Meanwhile, Iran said it was finalising a shipping agreement with Oman covering commercial traffic through the Strait of Hormuz, while rejecting reports that the United States was participating in the negotiations.

Major European indices advance

France’s CAC 40 gained 0.7%, while Germany’s DAX and the UK’s FTSE 100 both traded around 0.2% higher.

UK stocks in focus

Tullow Oil (LSE:TLW) fell 5.3% after investors reacted to concerns over the company’s unchanged debt position.

Wizz Air (LSE:WIZZ) slipped 1% after reporting a quarterly net loss that exceeded market expectations.

WPP (LSE:WPP) surged 23% as the advertising giant exceeded forecasts with its first-half profit and margin performance.

Persimmon (LSE:PSN) added 4% after stating that full-year home completions are expected to reach the upper end of previous guidance.

Serco (LSE:SRP) climbed 6% after reporting stronger first-half underlying earnings and announcing an expansion of its share buyback programme.

German stocks post mixed performance

Fresenius (TG:FRE) advanced 1.6% after posting solid second-quarter earnings and raising its outlook for 2026.

SGL Carbon (TG:SGL) gained 5% after returning to profitability in the second quarter.

Commerzbank (TG:CBK) rose 1.2% following record first-half financial results.

Nordex (TG:NDX1) added 2.5% after securing a contract from Turkerler Holding to supply approximately 525 MW of wind turbines.

Henkel (TG:HEN) jumped 4.6% after delivering strong interim results and upgrading its organic growth forecast for 2026.

Deutsche Telekom (TG:DTE) rallied almost 6% after increasing its 2026 share buyback programme by up to €3 billion.

Siemens (TG:SIE) dropped 5% after issuing a profit outlook that disappointed investors.

Merck (TG:MRK) gained 1.7% after improving its full-year sales and earnings guidance.

Other European movers

Swisscom (TG:SWJ) advanced 4.3% after reaffirming its 2026 revenue outlook alongside solid quarterly results.

Adecco (TG:ADI1) declined 3% after weaker-than-expected gross margins and operating cash flow weighed on investor sentiment.

Banco BPM (BIT:BAMI) climbed 5.3% after raising its profit guidance for 2026.

U.S. equity futures were little changed on Thursday as markets balanced optimism over diplomatic progress in the Middle East against a busy corporate earnings calendar and awaited key labour market data due later this week.

At 01:17 ET (05:17 GMT), Dow Jones futures were up 122 points, or 0.2%, while S&P 500 futures also gained 0.2%. Nasdaq 100 futures slipped 0.1%, as weakness in large technology stocks continued to weigh on sentiment.

Wall Street ended Wednesday’s trading on a mixed note. The Dow Jones Industrial Average added 0.5%, while the S&P 500 declined 0.2% and the Nasdaq Composite lost 0.8%.

Technology stocks remained under pressure after investors reacted to reports that SpaceX (NASDAQ:SPCX) plans to significantly increase spending on artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) also moved lower after Elon Musk said SpaceX would no longer use the company’s latest AI chips, despite AMD posting broadly encouraging quarterly results.

Economic releases also painted a mixed picture. ADP data showed that private-sector hiring slowed more than expected in July, although wage growth remained strong for workers changing jobs. Separate figures pointed to stronger activity across the U.S. services sector, supported by rising new orders and production, while employment weakened and inflationary pressures accelerated. Investors are now looking ahead to Friday’s closely watched U.S. non-farm payrolls report.

Diplomatic developments remain in focus

Attention also remained fixed on negotiations between Washington and Tehran.

Although President Donald Trump has repeatedly said discussions with Iran are progressing positively, no formal agreement has yet been announced.

Reuters reported that U.S. officials continue to insist any deal must prevent Iran from controlling access to the Strait of Hormuz, the strategic waterway that previously handled around 20% of global oil and liquefied natural gas exports.

However, the news agency also reported that a proposed arrangement between Iran and Oman would give Tehran oversight of vessels entering the Gulf through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmail Baghaei said both countries have agreed on the geographic coordinates of a designated shipping corridor.

A senior Iranian official also told Reuters that Tehran is seeking transit charges of up to 7% of the value of cargo carried by commercial vessels. Before the conflict, commercial shipping passed through the strait without paying such fees.

Oil prices edged around 0.3% lower after a volatile session on Wednesday, with traders continuing to assess the implications for inflation and future central bank policy.

Sandisk exceeds estimates but guidance prompts profit-taking

Sandisk (NASDAQ:SNDK) reported quarterly results ahead of analysts’ forecasts, benefiting from stronger pricing and robust demand for memory products used in data centres.

For the first quarter of fiscal 2027, the company forecast revenue of between $10.3 billion and $10.8 billion, broadly matching analysts’ expectations of $10.62 billion. Adjusted earnings per share are expected to range between $44.00 and $46.00, compared with a consensus estimate of $44.21.

Despite expanding its share repurchase programme and delivering another quarter of exceptional growth, investors focused on guidance that largely met expectations rather than exceeding them. Shares fell about 2% in after-hours trading.

Fourth-quarter revenue climbed to $8.97 billion, representing sequential growth of 51% and an increase of 372% from a year earlier. GAAP net income rose to $6.90 billion, or $43.97 per diluted share, compared with a loss of $23 million, or $0.16 per share, in the same period last year.

Block upgrades annual outlook

Block (NYSE:XYZ) reported quarterly revenue and earnings above market expectations and increased its forecast for adjusted profit for the full year.

The financial technology company also issued stronger-than-expected adjusted profit guidance for the current quarter, although its Class A shares slipped slightly in premarket trading.

Block’s portfolio includes the Square payments platform, the Afterpay buy-now-pay-later business and Cash App, its largest revenue-generating platform, which enables digital payments, personal finance services and bitcoin trading.

Originally founded as Square in 2009 by Twitter co-founder Jack Dorsey, the company rebranded as Block in 2021 to reflect its broader ambitions in blockchain and digital technologies.

Moderna wins FDA approval for first mRNA flu vaccine

Moderna (NASDAQ:MRNA) announced that the U.S. Food and Drug Administration has approved mFLUSIVA for adults aged 50 and over, making it the company’s first mRNA influenza vaccine and its fourth product authorised by the regulator.

The biotechnology company expects to begin shipping the vaccine to selected U.S. retailers in the coming weeks ahead of the 2026-2027 respiratory virus season. Worldwide, the approval makes mFLUSIVA Moderna’s fifth authorised product.

The decision follows a unanimous recommendation from the FDA’s advisory committee and is supported by Phase 3 clinical trial data involving more than 40,800 participants across 11 countries.

For adults aged 65 and older, the vaccine received accelerated approval based on immune response data from a separate U.S. study involving 2,992 participants. Moderna said further post-marketing studies will be conducted to confirm long-term clinical benefits in older adults.

The company’s shares moved higher in extended trading.

FTSE 100 edges higher as Wizz Air and Persimmon lead company news, while Brent crude declines and European markets remain near record highs.

Market Overview

The FTSE 100 opened marginally higher after gaining 0.01 per cent from the previous close, while the Euronext 100 added 0.04 per cent and Germany’s DAX rose 0.21 per cent at the open. Overnight, the Nasdaq closed lower at 26,363.44 and the S&P 500 finished lower at 7,723.55 as technology shares remained under pressure. European sentiment remained supported by corporate earnings and optimism surrounding progress on a Hormuz shipping agreement despite weaker US technology performance and continued focus on company results.

Commodity markets reflected a softer risk backdrop, with copper and natural gas edging higher while gold and Brent crude moved lower. Bitcoin rose against sterling. Sterling strengthened modestly against the US dollar and euro, while remaining broadly unchanged against the Swiss franc and Japanese yen, as lower oil prices and easing geopolitical concerns continued to influence broader market sentiment.

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Market Numbers

FTSE 100: Up (+0.01%), 10,888.45

Euronext 100: Up (+0.04%), 1,958.56

DAX: Up (+0.21%), 26,182.21

NASDAQ: Down, 26,363.44

S&P 500: Down, 7,723.55

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In the Headlines

Capacity growth – Wizz Air (LSE:WIZZ)

Wizz Air expanded passenger capacity and traffic during the first quarter despite reporting a wider loss as higher fuel costs and pricing pressure weighed on earnings. The results underline continued demand growth but highlight the profitability challenges facing European airlines.

Housing demand – Persimmon (LSE:PSN)

Persimmon reported higher first-half earnings as home completions increased and operational performance improved. The update reinforces signs of a stabilising UK housing market and supports expectations for continued growth in deliveries.

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Currencies (vs GBP)

USD: Up (+0.10%), $1.3470

CHF: Down (-0.01%), Fr.1.0866

EUR: Up (+0.04%), €1.1655

JPY: Up (+0.03%), ¥212.298

AUD: Down (-0.01%), $1.9086

Bitcoin (BTC/GBP): Up, £48,157.45

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Commodities

Copper: Up

Gold: Down

Brent Crude: Down

Natural Gas: Up

UK equities traded modestly higher on Thursday as investors monitored developments surrounding the Strait of Hormuz while digesting another busy day of corporate earnings releases.

By 03:13 ET (07:13 GMT), the FTSE 100 had gained 0.19%. Germany’s DAX was up 0.06%, while France’s CAC 40 led major European markets with a 0.71% advance. Sterling slipped 0.06% against the US dollar to trade at $1.3460.

Attention remained focused on geopolitical developments after U.S. President Donald Trump dismissed reports suggesting the conflict with Iran had significantly depleted American military stockpiles. In a Truth Social post, Trump said the United States had “massive amounts” of munitions and warned that anyone responsible for leaking military inventory information could face prosecution.

His comments followed a CNN report citing sources who claimed the U.S. had consumed around 80% of its pre-conflict THAAD interceptor inventory and roughly half of its Patriot missile interceptors since fighting began. According to the report, the situation has also raised concerns among Gulf allies that depend on U.S. air defence systems.

Separately, The Washington Post reported that Trump challenged Defense Secretary Pete Hegseth over the reported shortages during a meeting at Camp David last Friday. However, both the White House and the Pentagon rejected the report as “fake news,” with Press Secretary Karoline Leavitt and Pentagon spokesman Sean Parnell denying that any confrontation had occurred.

Meanwhile, Vice President JD Vance told Fox News that negotiations with Tehran would be “messy” and unlikely to conclude quickly. He said Washington would rely on “military, economic and diplomatic” measures to secure a favourable outcome, adding that oil prices, which he said were at “$79 today,” were expected to “come down and stay down.”

Brent crude rose 0.50% to $79.85 per barrel, while US West Texas Intermediate gained 0.25% to $75.41. Gold futures increased 0.35% to $4,320.50 an ounce, with spot gold also rising 0.35% to $4,261.92.

UK company news

Quilter (LSE:QLT) posted first-half earnings below market expectations after a higher policyholder tax charge offset record client inflows and stronger revenue growth.

Wizz Air (LSE:WIZZ) reported a larger-than-anticipated quarterly loss as higher fuel prices and weaker unit revenues outweighed strong capacity growth, while also warning of a softer outlook for the current quarter.

Persimmon (LSE:PSN) increased its forecast for 2026 home completions to the upper end of its previous guidance, although it cautioned that rising construction costs may not be fully recoverable in 2027.

Harbour Energy (LSE:HBR) upgraded its full-year production and free cash flow guidance following record first-half output and stronger oil and gas prices, while also unveiling a $250 million share buyback programme.

Michael Page (LSE:PAGE) reported higher first-half profit, with growth across Asia-Pacific and the Americas helping to offset continued macroeconomic uncertainty in global recruitment markets.

U.S. equity futures traded in positive territory on Wednesday, indicating another higher open as investors looked to build on the recent rally that has carried the Dow Jones Industrial Average and the S&P 500 to fresh all-time closing highs.

Confidence remained supported by easing energy prices and expectations that diplomatic negotiations could soon lead to the reopening of the Strait of Hormuz.

Oil retreat continues to underpin markets

The recent advance in U.S. equities has coincided with a sharp fall in crude oil prices, which have dropped by more than 10% over the past two sessions.

Although oil prices edged higher during Wednesday’s trading, market participants continued to focus on reports suggesting the United States and Iran are moving closer to an agreement that would restore shipping through the strategically important Strait of Hormuz.

Disney boosts pre-market sentiment

Corporate earnings remained another source of support for the market.

Disney (NYSE:DIS) gained more than 3% in pre-market trading after reporting fiscal third-quarter results that surpassed analyst expectations, adding to the positive tone created by the latest earnings season.

Record highs extend across Wall Street

Stocks posted another powerful advance on Tuesday, with all three major U.S. indices finishing comfortably higher.

The Dow Jones Industrial Average climbed 907.47 points, or 1.7%, to a record close of 54,085.88.

The Nasdaq Composite advanced 671.10 points, or 2.6%, ending at 26,584.99, while the S&P 500 rose 136.02 points, or 1.8%, to a new record of 7,736.52.

Although the major averages gave back part of their intraday gains before the close, investor appetite remained strong.

Palantir and lower oil prices drive momentum

Wall Street also benefited from another steep decline in oil prices. U.S. crude futures dropped 5.7% on Tuesday after losing more than 5% in the previous session.

Prices reversed lower after U.S. Treasury Secretary Scott Bessent said an agreement between Washington and Tehran to reopen the Strait of Hormuz could be reached within days.

Technology stocks also outperformed after Palantir (NASDAQ:PLTR) reported quarterly results that exceeded expectations and lifted its full-year guidance, sending the shares almost 30% higher.

European equity markets traded modestly higher on Wednesday after closing at fresh record highs in the previous session, supported by another round of encouraging corporate earnings and continued optimism surrounding negotiations between the United States and Iran over reopening the Strait of Hormuz.

Britain’s FTSE 100 gained 0.5%, Germany’s DAX added 0.2%, while France’s CAC 40 advanced 0.1%.

Corporate earnings remain the main market driver

Among individual stocks, Ibstock (LSE:IBST) declined 2.4% after the building materials group reported lower first-half revenue and indicated that full-year 2026 profit is likely to come in at the lower end of its guidance range.

Glencore (LSE:GLEN) climbed 3.3% after stronger commodity prices helped the mining and trading group deliver a sharp increase in first-half earnings.

Next (LSE:NXT) rallied 6.5% after upgrading its earnings outlook for the third time during the current financial year.

Coca-Cola HBC (LSE:CCH) gained 4% after improving its full-year profit forecast following another solid set of results.

Sandoz (LSE:0SAN) jumped almost 8% after reporting second-quarter net sales growth of 9%, comfortably ahead of market expectations.

Mixed performance across healthcare and industrials

Novo Nordisk (NYSE:NVO) fell 3.7% after announcing that one of its experimental medicines failed to reduce the risk of heart attack or stroke in a late-stage clinical study.

Schaeffler (TG:SHA0) advanced 1.3%. The German automotive and industrial supplier reported second-quarter profit broadly in line with expectations and unveiled plans to reduce its domestic workforce through an expanded phased-retirement programme.

Infineon Technologies (TG:IFX) dropped nearly 6%, despite reporting record quarterly revenue and raising both its full-year revenue forecast and adjusted free cash flow guidance.

Siemens Energy (TG:SIE) added 1.2% after announcing record third-quarter sales, margins and order intake.

Heineken extends gains after strong results

Heineken (EU:HEIA) rose 2.5% after the Dutch brewer posted stronger-than-expected first-half profit and reaffirmed its earnings outlook for the full year.

US equity futures traded modestly higher on Wednesday as investors balanced signs of diplomatic progress in the Middle East against a fresh round of high-profile corporate earnings. Reports from SpaceX (NASDAQ:SPCX), Advanced Micro Devices (NASDAQ:AMD) and Novo Nordisk (NYSE:NVO) dominated pre-market trading.

While hopes of easing geopolitical tensions supported broader sentiment, several individual stocks experienced sharp moves following earnings announcements and executive commentary.

Markets gain on hopes of a breakthrough over the Strait of Hormuz

At 03:09 ET (07:09 GMT), futures on the Dow Jones Industrial Average rose 156 points, or 0.3%. S&P 500 futures added 0.4%, while Nasdaq 100 futures advanced 0.3%.

Wall Street ended the previous session in positive territory after US Treasury Secretary Scott Bessent indicated that negotiations with Iran over reopening the Strait of Hormuz could soon produce an agreement. Officials in Qatar also pointed to encouraging progress in regional talks.

Lower crude prices added further support by reducing concerns that energy costs could reignite inflationary pressures or force central banks to maintain higher interest rates for longer. Treasury yields also moved lower before comments from Kansas City Federal Reserve President Jeffrey Schmid, who said inflation would require “tighter policy” before returning to the Fed’s 2% target.

Corporate earnings continued to underpin investor confidence. Palantir (NASDAQ:PLTR) surged almost 30% after lifting its annual revenue forecast, with Chief Executive Alex Karp describing quarterly sales growth as “otherworldly.” Snap (NYSE:SNAP) also rallied after narrowing its quarterly loss, while Caterpillar (NYSE:CAT) climbed more than 5% after raising its sales outlook for 2026.

According to Deutsche Bank, investors also continued rotating back into semiconductor and AI infrastructure stocks, becoming “increasingly willing to lean back into the capex theme that looked under pressure” during July’s market volatility.

Trump says negotiations with Iran are progressing

US President Donald Trump said talks between Washington and Tehran had been “very good,” fuelling speculation that a resolution to months of tensions in the Gulf may be approaching.

Speaking with Fox News, Trump said the Strait of Hormuz would be “open very soon” and warned that Iran would “get hit really hard” if it abandoned a potential agreement.

Despite the encouraging rhetoric, analysts cautioned that investors remain wary after several previous rounds of negotiations failed to deliver lasting results.

“Markets have seen plenty of false dawns throughout this conflict, so plenty of attention will be on whether a deal is announced imminently and its details,” Deutsche Bank analysts said.

Brent crude later recovered to trade around 0.8% higher at $80.01 per barrel after falling below the $80 mark in the previous session.

Heavy investment overshadows strong SpaceX revenue growth

SpaceX shares fell more than 7% in extended trading despite reporting a sharp increase in quarterly revenue.

The aerospace and satellite communications company generated second-quarter revenue of $7.8 billion, up 92% year-on-year, while narrowing its net loss. However, investors focused on the company’s heavy investment programme, which pushed free cash flow further into negative territory.

Capital expenditure reached $18.36 billion during the quarter, including $15.8 billion invested in the company’s artificial intelligence operations. Meanwhile, revenue from Starlink increased 66% to $4.3 billion as subscriber numbers doubled.

Chief Executive Elon Musk reiterated his long-term ambitions, saying the company ultimately aims to generate $1 trillion in annual revenue and suggesting orbital data centres could become a reality next year.

“[T]he revenue and EBITDA results are great, but the cash flow numbers are pretty ugly,” analysts at Vital Knowledge said.

Musk comments weigh on AMD despite record performance

Advanced Micro Devices shares also moved lower after Musk announced that SpaceX would rely exclusively on Nvidia’s Blackwell AI platform rather than purchasing AMD processors.

He described Nvidia as offering the “best architecture” and confirmed that SpaceX would “build exclusively” using its technology.

The announcement overshadowed another record quarter for AMD.

The semiconductor manufacturer reported revenue of $11.5 billion for the quarter ended 27 June, slightly exceeding analyst expectations and marking its fifth consecutive quarter of record sales.

Revenue from AMD’s data centre division climbed to a record $6.7 billion, accounting for 58% of total company revenue compared with 42% a year earlier, underscoring continued growth in AI infrastructure demand.

Novo Nordisk disappoints despite improving guidance

Novo Nordisk (NYSE:NVO) raised its full-year outlook, forecasting a smaller decline in sales and operating profit than previously expected as demand for its obesity treatments remained resilient.

However, the company’s shares declined after sales of the oral version of Wegovy came in below market forecasts and an experimental next-generation weight-loss treatment delivered disappointing clinical trial data.

Novo Nordisk now expects adjusted sales and operating profit to decline by up to 6% at constant exchange rates, improving on its earlier guidance for declines of between 4% and 12%.

Second-quarter sales of oral Wegovy totalled 3.2 billion Danish kroner, missing analyst estimates of 3.3 billion kroner, while injectable Wegovy generated revenue of 19.48 billion kroner.