OpenAI told investors its revenue grew by 18% from the first to the second quarter, while its losses deepened, results that disappointed some shareholders who had hoped the startup would show more progress catching up to rival Anthropic. The company said its revenue grew to $6.7 billion in the three months ending in June, up from $5.7 billion in the first quarter. Meanwhile, its operating margin sank further into the red, pushing the company farther away from profitability ahead of a much-anticipated initial public offering, people familiar with the matter said. Anthropic more than doubled its revenue to $11.6 billion in the same period, marking the first time its sales surpassed its older rival. The company also swung to a small operating profit. The two companies’ diverging fortunes show just how drastically the artificial-intelligence race has shifted since the beginning of the year. A slowdown in the growth of ChatGPT, combined with the success of Anthropic’s hit coding tool, Claude Code, has put OpenAI on its back foot, forcing the company to pivot its business and overhaul its leadership team. Last week, the company replaced its chief revenue officer, Denise Dresser, after she spent less than a year on the job. Her departure followed a string of other exits, including former chief operating officer Brad Lightcap and Fidji Simo, once seen as the heir apparent to Chief Executive Sam Altman.

Despite spending much of the day's trading session in negative territory, the Swiss market's benchmark index SMI settled marginally above the flat line on Tuesday thanks to selective buying at a few counters during the final hour. The SMI, which slipped into negative territory around mid-morning, stayed weak for a long time before edging higher. The index ended with a gain of 18.51 points or 0.13% at 14,320.90 after scaling a low of 14,251.01 and a high of 14,336.58 intraday. Alcon gained about 2.5%. Sonova and Novartis moved up 1.85% and 1.75%, respectively, and Roche climbed 1.35%. Swiss Re, Nestle, Richemont, Swisscom, Zurich Insurance and Galderma Group posted modest gains. VAT Group closed lower by 4.6%. Amrize, ABB, Logitech International, Holcim, Sika and Sandoz Group ended down 2%-3%. Kuehne + Nagel, Geberit, UBS Group, Schindler Ps, SGS, Partners Group, Straumann Holdings and Julius Baer also closed notably lower.

Europe
European stocks closed mostly lower on Tuesday weighed down by concerns about escalating tensions between Iran and the U.S., elevated oil prices and rising bond yields. The pan European Stoxx 600 ended down 0.69%. Germany's DAX shed 0.8% and France's CAC 40 closed with a loss of 0.82%, while the UK's FTSE 100 outperformed and edged up 0.07%. Switzerland's SMI closed 0.13% up. Among other markets in Europe, Austria, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Spain and Sweden closed weak. Iceland, Portugal and Russia ended higher, while Belgium, Czech Republic and Türkiye closed flat. In the UK market, energy stocks BP and Shell moved up 2.7% and 1.8%, riding on higher oil prices. Relx, Experian, Burberry Group, AstraZeneca, Marks & Spencer and Smith & Nephew gained 2%-3%. GSK, United Utilities, National Grid, JD Sports Fashion, BT Group, Severn Trent, Haleon, The Sae Group, Coca-Cola Europacific Partners, Unilever and Centrica also ended sharply higher. Miners Anglo American Plc, Fresnillo, Endeavour Mining and Antofagasta declined sharply. Bank stocks Barclays and Natwest Group ended weak. Polar Capital Technology Trust dropped 4.2%. Halma, Babcock International, Weir Group, Lion Finance, Diploma, Land Securities, IAG, Metlen Energy & Metals and Barratt Redrow also ended notably lower. In the German market, Infineon Technologies tumbled more than 7%. Siemens Energy dropped 5.2%. Heidelberg Materials, Siemens, Airbus, MTU Aero Engines, Continental, RWE, Commerzbank, Daimler Truck Holding, Symrise, Vonovia and Hochtief lost 1%-3%.

United States
U.S. stocks fell Tuesday as a worldwide bond selloff pushed long-term yields to their highest levels in years. Chip stocks came under heavy pressure and the expiration of a U.S.-Iran ceasefire rekindled fears of renewed Middle East escalation. The Dow Jones Industrial Average fell 116.38 points, or 0.22%, to 53343.40. The S&P 500 lost 53.30 points, or 0.69%, to 7691.76, while the Nasdaq Composite declined 355.20 points, or 1.33%, to 26289.71. According to preliminary data, there were 945 advancing issues and 1779 declining issues on the NYSE. Klarna fell 23% after the buy-now-pay-later company cut its 2026 revenue forecast below Wall Street estimates, citing softer consumer spending in Germany and currency headwinds Home Depot edged lower after reporting higher sales, though its CFO noted that steep interest rates and continued inflation are keeping homeowners away from larger renovation projects. UGI jumped 9.4% after KKR made a $9 billion takeover bid for the natural-gas and electricity distributor. Amylyx Pharmaceuticals surged 64% after announcing positive late-stage trial results for experimental treatment. Housing starts fell 12.4% in July from the previous month, well below the 6.1% drop economists had expected, as elevated mortgage rates and economic uncertainty kept buyers sidelined. A Bank of America survey of fund managers found that 56% now expect the global economy to keep growing without a slowdown, a record share, while 72% do not expect the Fed to raise rates before November's midterm elections. Meta's trial began on Tuesday, with four states seeking as much as $1.4 trillion in damages, alleging that Facebook and Instagram contributed to a youth mental health crisis.

Asia
Asian stock markets are trading lower midweek, with some suffering heavy losses. The volatile Seoul stock market is seeing a particularly sharp fall, with the Kospi plunging by 5.4 per cent. Here, heavy losses among the index heavyweights Samsung Electronics (-7.5 per cent) and SK Hynix (-9.1 per cent) are dragging the market down.

Bonds
Yields on U.S. Treasury bonds ended lower after climbing overnight. The 10-year yield declined 0.019 percentage point to 4.706%. The ICE U.S. dollar index increased by 0.04 percentage point. The euro was last seen at $1.16. Gold lost $51.80 to $4366 per troy ounce. The 30-year Treasury yield hit its highest level since 2007 early Tuesday.

Analysis
Jefferies raises Kuehne + Nagel to 240 (220) CHF – Buy
Jefferies raises ING to 31 (28) EUR – Hold
Jefferies raises H&M to 160 (154) SEK – Hold


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