Market Update US, Europe & Asia

Market Update US, Europe & Asia FSA Competence Center Equities | 7 August 2026 | Page 1 of 13

Equity Market Previous Close 1-Day (%) 1-Day (Chg) WTD MTD QTD YTD 12-Month US Dow Jones Nasdaq Mexico Brazil Europe UK France Germany Spain Switzerland Japan Hong Kong China India

Commodities Last 1-Day (%) 1-Day (Chg) WTD MTD QTD YTD 12-Month Volatility Gold Oil Thomson Reuters/Core Commodity Bloomberg Commodity Index USD/JPY EUR/USD GBP/USD EUR/CHF

Fixed Income 2s10s 10y Swap 2y 5y 10y Core Indicators (bps) Spread US Germany UK Japan -

U.S. Markets Recap Dow (0.85%), US (0.18%), Nasdaq (0.06%)

Synopsis  US equities closed lower in Tuesday trading, though downside was limited and indices still set to log solid weekly gains. Momentum was mixed; semis were largely better but reporters SNDK and WDC were lower in memory. No clear through line for today's pullback, though multiple dynamics still at play. Q2 results still very strong overall (and Street has been very upbeat on revision dynamics), though some scrutiny surrounding semis (high bar the issue) and software results. Geopolitics has been a lingering issue, with oil notably higher today amid reports Iran-Oman deal reopening SoH could bar US and Israeli vessels. But still a lot of skepticism about the possibility of translating anything involving Iranian oversight into a permanent deal. Fed also in focus after FT article suggesting Chair Warsh will continue his light- communication approach despite the market's backlash; article also said Warsh is prepared to raise rates in September if inflation readings come in hotter and market prices in a policy shift. Macro will remain in focus over the near term with NFP tomorrow and more importantly, CPI next Wednesday. Another busy earnings session. SNDK and WDC both had strong Qs but stocks weaker on elevated expectations. APP was pressured by Q2 sales miss and largely in line guide. COP beat and left FY guidance unchanged; announced near-

Market Update US, Europe & Asia FSA Competence Center Equities | 7 August 2026 | Page 2 of 13

term CEO transition. PH posted a big beat with organic growth well ahead of consensus. MCK takeaways positive on NA pharma acceleration and margin expansion, though MedSurg was a bit of a blemish. DDOG customer adds softer while expectations very high. DASH order growth accelerated with DashPass subscriber growth a focus. HONA results hampered by weaker supply chain improvement. Earnings-linked gainers included MSI, ALL, MET, OXY, LNG, BDX, ATI, FOXA, USFD, and INSM. Earnings decliners included AXON, TS, FISV, CDE, FIG, SGI, BSY, and CELH.  Sector Performance: Energy +1.59%, Healthcare +0.14%, Tech +0.09%, Consumer Spls. (0.12%), Financials (0.37%), Consumer Disc. (0.37%)¸ Utilities (0.63%), Communication Svcs. (0.73%), Materials (0.79%), Real Estate (0.83%), Industrials (0.83%)

Macro  Initial jobless claims printed at 199K, a bit better than 202K consensus and prior week's 198K (revised up from 197K). Continuing claims came in at 1801K, above 1790K forecast and prior week's downwardly revised 1777K (was 1782K). Followed July Challenger layoffs report noting lowest monthly total in two years (though still some AI-related pressure in tech). Preliminary Q2 productivity at a +1.4% SAAR, better than 0.6% consensus and Q1's 0.8% (revised up from 0.3%). Unit labor costs at a +1.3% SAAR against forecast for 2.1%. St. Louis Fed President Musalem speaks after the close. Musalem recently told the FT the selloff in longer-dated Treasuries was a signal Fed must earn its "credibility" on fighting inflation by backing up its tough talk on returning to 2% target with rate hikes. July employment report caps off the week on Friday. Nonfarm payrolls expected to increase ~80K in July following a 57K increase in June.  Iran's conditions for reopening Strait of Hormuz draw US objections: Strait of Hormuz headlines turned more cautious with latest reports highlighted maximalist Iranian demands seen risking deal's acceptance by US (Bloomberg). Terms of agreement reported in Iranian media would seek to ban US and Israel ships from transiting Hormuz until compensation is paid, violations would incur penalty of 20% of value of ship's…