Joseph Wang

Markets Weekly for August 1, 2026 covers four major topics: a dead cat bounce in AI stocks following massive losses, imminent Iran military escalation with economic consequences, coordinated US-Japan yen intervention that addresses symptoms not causes, and Fed Chair Kevin's proposal to reduce meeting frequency which could increase interest rate volatility.

Markets Weekly discusses the US-Iran peace agreement and its deflationary impact on oil prices, along with the broader 'China shock 2.0' phenomenon where Chinese manufacturing has moved up the value chain and now threatens Western industries, prompting Europe to consider erecting tariff walls similar to the US.

Fed Chair Kevin Warsh's first FOMC meeting marked a significant shift toward less forward guidance, more hawkish messaging, and structural changes via task forces on communications, balance sheet policy, data measurement, AI productivity, and inflation frameworks. Market reaction was hawkish with rate hikes priced in despite no immediate rate increase, while Joseph Wang discusses the long-term implications for Fed power consolidation and financial stability.

Markets Weekly discusses peak inflation driven by energy prices amid positive Iran peace developments, and analyzes the record-breaking SpaceX IPO alongside concerns about massive equity supply flooding the market in coming months that could pressure stock prices.