Mid-Morning Look: August 24, 2026

Mid-Morning Look

Monday, August 24, 2026

U.S. stocks are sliding early, adding to last week’s losses led by weakness in technology (XLK), falling over -2% amid a notable pullback in semiconductors (SOX) which is down over -3.75% to 11,300 ahead of key earnings this week in the sector. US stock futures erase Friday’s advance, as investors position ahead of a major catalyst-heavy week including earnings results Wednesday from the AI chip giant Nvidia (NVDA) as well as reports from other chip maker Marvell (MRCL) and several software names (CRWD, CRM). Investors are looking for evidence that massive AI infrastructure demand can reignite mega-cap tech momentum. The last two weeks, the “AI” trade has seen a notable pullback following a massive run as political pushback of data center buildouts in Texas, Tennessee, Pennsylvania and New York weigh. Outside of a few off quarter key earnings results, The Fed’s Jackson Hole event becomes the focus Friday as Fed Chair Warsh is scheduled to speak on the long-term monetary-policy framework and bond-market trajectory. The Trump administration is also expected to announce the details of new economic sanctions against Iran while deal talks between Canada and the U.S. fell apart this weekend, leading to massive tariffs against one another. Note All three major indices posted weekly losses last week, ending their three-week winning streaks. Early strength in Consumer Staples (XLP), Financials (XLF), Materials (XLB) and Communications (CLX>

U.S. and Canada trade talks broke down over the weekend, and the U.S. imposed new tariffs on Canadian goods, which is boosting shares of U.S. metal producers like Nucor (NUE), Steel Dynamics (STLD) and Cleveland Cliffs (CLF). Canadian Prime Minister Mark Carney suspended negotiations and vowed to retaliate with like-for-like tariff as the U.S. hit Canada with fresh 50% tariffs on billions of dollars of Canadian goods taking effect. The S&P 500 (SPX) Materials (XLB) sector +0.9% to $54, new all-time highs amid metals moves. Precious metals are higher once again, with gold rising 1% around $4,725 an ounce after jumping $109.20, to settle at $4,680.60 Friday while silver prices climbed +$1.43, to settle at $69.53 an ounce. Gold posted its third consecutive winning week on Friday, rising over 5% and ending at three-month highs.

Bond yields moved back up near their highest levels l in over a decade late Friday even as Treasury Secretary Scott Bessent seeks to contain borrowing costs. But prices have pulled back this morning as oil prices are down -2% after WTI crude rose $5.59 per barrel, or 6.86% to $87.06 last week its largest one week net and percentage gain since the week ending July 24, 2026 (now up 11.36% the last 2 weeks) and up closed higher for a sixth consecutive session, longest win streak since March 9, 2026.

The U.S. on Monday will unveil “economic D-Day” sanctions to further strain Iran, with Treasury Secretary Scott Bessent calling it “the single greatest financial offensive ever marshaled against an adversary.” “We are now entering the endgame,” Bessent posted on X. “Our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone.” Bessent is slated to hold a press conference at 1 pm ET on Monday to detail the sanctions. In an op-ed published in the Financial Times, Bessent warned countries against maintaining trade and financial ties with Iran.

• Auto sector: U.S. tariffs on all cars and trucks, automotive parts and steel will be increased to 50% starting January 1, 2027, President Donald Trump said in a social post on Monday after trade talks with Canada collapsed. “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” Trump wrote. XPEV reported Q2 Non-GAAP EPADS of -$0.19, missing ests by $0.08, while revenue of $2.91B (+8% Y/Y) missed by $130M. Gross margin improved to 20.7%, but deliveries were essentially flat Y/Y at 103,295 vehicles. Q3 guidance calls for 115,000–121,000 deliveries.
• Media sector: NFLX has discussed bringing services like Peacock and Fox One directly into its app, per NY Times. The move could turn Netflix into more of a streaming hub, similar to Prime Video or Roku. No deal is imminent as per the report. California’s Attorney General Rob Bonta canceled a meeting with PSKY representatives scheduled for Monday to begin settlement talks over the state’s lawsuit seeking to block Paramount’s proposed acquisition of WBD, his office said.

• MSTR +5%; as Bitcoin levered stocks outperform as Bitcoin prices rise 2.5% to $79,300, adding to last weeks more than 20% advance, helped by the Treasury buyback announcements.
• NUE +4%; along with gains in other steel producers STLD, CLF and aluminum producers AA, CENX were higher initially after the U.S. imposed 50% tariffs on selected Canadian goods after trade talks between the U.S./Canada broke down. The tariffs add to strains, potentially complicating broader efforts to renew the United States-Mexico-Canada Agreement trade pact.
• WULF +3%; receives Kentucky Public Service Commission approval of retail electric service agreement for up to 482 MW for its justified data campus.

• BABA -3%; announced $10.2B share placement as it steps up capital expenditure to compete with the world’s leading AI firms.
• GOOS -5%; was downgraded to Underweight from Overweight at Wells Fargo saying while they appreciate the work done over the past 18-24 months to reinvest and improve product – it simply feels the macro is against them (El Nino, EMEA and tariffs) and the NT risk is material.
• HIMS -7%; shares tumbled Bloomberg noted the company was put on notice by Visa Inc. for excessive customer complaints in its weight-loss subscription business, according to internal documents.
• RGNX -23%; said the FDA has placed its experimental gene therapy for Hunter syndrome on clinical hold after spinal scans found abnormalities in five study participants. Spinal scans identified a small lump or fluid-filled mass in five patients who received the treatment, RGX-121, about three to six years ago.
• SNDK -10%; broad pullback in semiconductor stocks, memory names in particular with SKHY, MU, WDC tumbling, but INTC, ARM, AMD also lower; NVDA falls a 7^th straight day.
• XPEV -7%; reported Q2 Non-GAAP EPADS of -$0.19, missing ests by $0.08, while revenue of $2.91B (+8% Y/Y) missed by $130M. Gross margin improved to 20.7%, but deliveries were essentially flat Y/Y at 103,295 vehicles. Q3 guidance calls for 115,000–121,000 deliveries.