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Stocks drift with Hormuz and inflation in focus.

Stocks drift with Hormuz and inflation in focus.

A major shift is underway in European stocks.

August 11, 2026

1. The reporting season is winding down after exceptionally strong results.

JPMorgan raises S&P 500 year-end target to 8,000.
A strong earnings season and faster AI monetization than expected for hyperscalers is boosting profit estimates, JPMorgan says, raising its S&P 500 year-end target to 8,000 from 7,800. That’s 2.5% upside…
“We keep the forward P/E multiple unchanged at ~20 times given higher-for longer rates, ongoing geopolitical uncertainty and unprecedented equity and debt supply that will need to be absorbed.”
Below: S&P breaking out of its range

2. A major shift is underway in European stocks.

Europe’s stock market is firing on all cylinders and drawing money managers who say this rally will be more durable than just another short-term trade.
With about 80% of Stoxx 600 companies having reported and Q2 EPS growth near 20%, the focus shifts to guidance upgrades.
Also, European equity breadth has rarely been so strong. That’s a strong signal.

3. The cost of servicing US debt is going parabolic.

The estimated annualized cost to service the US debt has tripled over the past five years.
The resulting yield rise will engender volatility in stocks, as it threatens corporate credit, most relevantly in the tech space. It will also be a form of higher rates that is counterintuitively negative for the dollar, as it will be predicated on declining US policy credibility.

4. The crisis in the Middle East is helping the sale of EV’s.

Countries where economies have been hit hard by the oil crisis, want to improve their energy security. They see EVs as a way to reduce their dependence on imported gasoline and are rolling out policies to encourage drivers to buy them.

5. Token prices.

Alibaba's Qwen launches open platform, opening up service integration for devices including mobile phones, PCs, and AI glasses, to ecosystem partners and developers.

"Competition is up and prices are down. This is good for consumer and enterprise users of AI (agents) and promotes much wider and faster AI adoption."