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U.S. stocks ended modestly higher Wednesday as long-term Treasury yields fell sharply. The S&P 500 rose 16.22 points, the Dow Jones Industrial Average gained 119.65 points, and the Nasdaq Composite added 41.38 points. Falling government bond yields helped major indexes recover after several sessions of pressure from rising borrowing costs. Bond prices climbed after the U.S. Treasury Department announced larger liquidity support buybacks for longer-dated government debt. Treasury yields moved lower following the announcement, easing pressure from the recent selloff in longer-term government bonds.

Eco-friendly vehicles lead July export gains
The ministry linked the July export increase to more operating days and continued overseas demand for eco-friendly vehicles and SUVs. Major automakers shifted summer vacation schedules from July in 2025 to August in 2026. That change increased the number of working days during the month. Higher production followed the same calendar effect, with output rising 11.3% year on year to 352,000 vehicles. June production had reached 394,000 vehicles, an increase of 11.6% from a year earlier.
South Korea’s domestic auto market posted a smaller increase than exports and production. Vehicle sales rose 0.5% from July 2025 to 139,000 units. Eco-friendly vehicles accounted for 84,000 domestic sales, or about 60% of the market. Electric vehicle sales increased 47.5% to 36,000 units. Eco-friendly models therefore represented about three of every five vehicles sold domestically during July. Total domestic vehicle sales remained close to their level in the same month a year earlier.

North America and Europe post strong increases
The auto results formed part of a broader increase in South Korean exports during July. Total goods exports reached US$98.89 billion, the second-highest monthly value on record and up 62.8% from a year earlier. Automobiles contributed about 6.3% of the July export total.

Diesel prices remained elevated on Wednesday as tighter refined-product supplies kept pressure on fuel markets in the United States and Europe. U.S. ultra-low sulfur diesel futures jumped 7.4% on Monday to settle at $4.19 a gallon. That marked the contract’s biggest daily gain since July 13. Early Wednesday trading put the contract near $4.28 a gallon, while European diesel refining margins remained at historically high levels after rising nearly 10% on Monday.

Europe’s extreme summer heat and drought could cut EU economic output by about 1% in 2026, according to new analysis from Triodos Bank. The estimated loss equals roughly €180 billion and is close to the European Commission’s current growth forecast for the bloc. The comparison shows the scale of the weather-related damage estimated in the bank’s analysis.

The July consumer price index reached 102.92, with 2025 set as the index base of 100. Holiday home rentals and package holidays accounted for 1.24 percentage points of the monthly increase. Food added 0.15 percentage point. Lower clothing, hotel accommodation and footwear prices reduced the monthly rise by a combined 0.34 percentage point. Rent provided the largest positive contribution to annual inflation, adding 0.55 percentage point. Holiday home rentals added 0.51 point, while fuel added 0.39 point. Electricity prices cut 0.68 point from the annual rate. Food prices reduced it by 0.26 point, and package holidays subtracted 0.06 point. The combined movements left headline inflation below June’s 1.9% reading.

Gold advanced for a third consecutive session on Tuesday as bullion extended its rebound from last week. Spot gold gained 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. U.S. gold futures climbed 1.7% to $4,492.60. The move pushed prices above the seven-week peak recorded last week and continued a recovery that accelerated after weaker U.S. employment data.

South Korea heat wave drives fresh food prices higher. Fresh vegetable prices have surged in South Korea as prolonged extreme heat reduced shipments and damaged farm output nationwide. Korea Agro-Fisheries & Food Trade Corp. data showed spinach at 1,978 won per 100 grams on Aug. 7, up 152.3% from a month earlier. Ten cucumbers cost 8,313 won, an increase of 54.8%. Blue lettuce rose 41.7%, while a zucchini climbed 46.6% to 1,504 won.

Under the terms of the revised agreement, the main satellite constellation will grow from 282 planned orbital units to 348 active spacecraft. The expanded network architecture integrates 330 satellites positioned in higher low Earth orbit alongside 18 spacecraft deployed in medium Earth orbit, with optional orbital elements reserved for specialized mission support. The implementation agreement confirms the definitive timeline for satellite manufacturing, launch procurement, secure ground segment construction, and operational connectivity service delivery. The primary constellation schedule establishes initial satellite launches for 2029, enabling early sovereign connectivity capabilities for participating member states shortly thereafter.

The latest slide followed a sharp Tuesday retreat that exceeded the 4% decline reported earlier in the session. Brent settled 5.3% lower at $79.36 a barrel, its first close below $80 since July 13. WTI settled 5.7% lower at $75.77. Both contracts reached their lowest closing levels in three weeks. The Tuesday losses extended Monday’s drop, when Brent fell 7% and WTI declined 5.1%.

Headline inflation across OECD economies eased to 4.2% in June 2026 from 4.6% in May, ending three straight monthly increases. The measure tracks annual changes in consumer prices across the group’s member countries. Inflation declined in 20 economies, increased in six and remained stable or broadly stable in 12. Nine OECD countries recorded inflation at or below 2%, including three where the rate stood below 1%. Energy prices drove much of the monthly easing. OECD energy inflation fell four percentage points to 11.7% year on year, after reaching 15.8% in May. The rate declined in 24 of the 37 countries with available data.