Please see below the daily update article from Brooks Macdonald, received this morning – 04/08/2026:
What has happened?
The combination of lower oil prices and stronger economic data provided a supportive backdrop for risk assets. The S&P 500 rose +1.48% to finish just below its June record high, while the Nasdaq Composite gained +2.13%. Large-cap technology led the advance, with the Magnificent Seven rallying +3.56%. Together with last week’s rebound, the group delivered its best three-day run (+8.98%) since the US-China trade truce in May 2025. Europe also participated in the rally, with the Stoxx 600 up +0.45%. One of the most notable corporate stories came from healthcare, where AstraZeneca fell -8.96% following reports that it had explored a potential acquisition of Bristol-Myers Squibb, a deal that would rank as the largest pharmaceutical transaction on record.
The market gets the best of both worlds
Markets were encouraged by signs that geopolitical tensions and growth concerns may be easing at the same time. Optimism grew after reports of renewed diplomatic engagement between the US and Iran, alongside progress on temporary shipping arrangements through the Strait of Hormuz. At the same time, US economic data surprised positively. The ISM manufacturing index rose to 55.6 in July, its highest level since May 2022 and comfortably above expectations, with employment returning to expansion territory for the first time since September 2023. Survey commentary highlighted strength in semiconductors, artificial intelligence, defence and high-performance computing. The result was a combination investors have seen little of this summer: easing inflation concerns alongside stronger growth signals, helping to support both equity and bond markets.
What does Brooks Macdonald think?
While geopolitical developments helped improve sentiment, the more important takeaway may be that market optimism is still being underpinned by fundamentals. Recent economic data suggest that overall business investment remains healthy. The resilience of corporate earnings and business activity remains an important source of support for risk assets, particularly if growth can continue without a material reacceleration in inflation.
Please continue to check our blog content for advice, planning issues and the latest investment market and economic updates from leading investment houses.
Cameron Owen
04/08/2026