Most Important News

1. US Federal Debt Tops $40 Trillion, Annual Interest Hits $1.17 Trillion;
2. Al-Modawat H1 2026 Net Profit Down 42% Despite 31% Revenue Growth;
3. Moderna Soars 177% in One Day, Shorts Lose $5.5B;

At the close of 19/8/2026, the Tadawul All Shares Index(TASI.SA) increased by 0.13%, closing at 10925.69 points; the Parallel Market Capped Index (NomuC)(NOMUC.SA) decreased by 0.05%, closing at 21573.18 points.

As of Wednesday’s close, the S&P 500 index(SPX.US) increased by 0.21%, the NASDAQ(IXIC.US) rose by 0.16%, and the Dow Jones Industrial Average(DJI.US) increased by 0.22%.

US Federal Debt Tops $40 Trillion, Annual Interest Hits $1.17 Trillion

US Treasury data shows federal debt has surpassed $40 trillion for the first time, just five years after topping $30 trillion. Interest payments this fiscal year reached $1.17 trillion—up 15% year-on-year—now the government's third-largest expense. Treasury Secretary Yellen expanded long-term bond buybacks, lowering yields, though recent 10- and 30-year bond auction rates hit multi-year highs. Deutsche Bank’s Matthew Luzzetti notes the focus is rising yields pushing up debt costs, not the headline number. Fitch expects the $41.1 trillion debt ceiling could be reached by mid-2027.

Fed Minutes: More Officials See Possible Need for Rate Hikes

According to the July 28–29 Fed meeting minutes, several officials said more rate hikes may be needed if inflation stays high. The FOMC kept rates at 3.5%-3.75% by a 9–3 vote, with Dallas, Cleveland, and Minneapolis Fed presidents favoring a 25bps hike. Two non-voting regional Fed presidents later said they would have supported a hike as well.

Most officials expect inflation to ease as earlier energy and tariff effects fade, but many warned inflation could stay elevated, especially with renewed US-Iran tensions. Chair Waller suggested reducing Fed meetings from eight to six per year, but not for 2026. Recent weak jobs, retail, and core inflation data have cut the chance of a September rate hike from over 70% to around 36%.

KSA Stocks

SMASCO Announces SAR 60M H1 2026 Dividend

Saudi Manpower Solutions Co.(1834.SA) will distribute SAR 60 million in cash dividends (SAR 0.15/share, 15% of par value) for H1 2026 to shareholders of record on August 27. Payment is set for September 9, 2026.

Al-Modawat H1 2026 Net Profit Down 42% Despite 31% Revenue Growth

Al-Modawat Specialized Medical Co.(9594.SA) reported a net profit of SAR 5.96 million for H1 2026, down 42% year-on-year, despite a 31% jump in revenue to SAR 72.36 million. The profit drop was due to higher costs from expanding staff and facilities ahead of upgrading its hospital license to 100+ beds—a move expected to allow a 21% increase in service pricing for National Health Insurance Authority patients (about 60% of revenue) once finalized. Operational cash flow and cash reserves improved sharply, while infrastructure investments and preparations for growth continued.

Riyal Investment H1 2026 Net Profit Drops 85% on Flat Revenue

Riyal Investment and Development Co.(9584.SA) reported a net profit of SAR 0.79 million for H1 2026, down 85% year-on-year, despite a slight 2% rise in revenue to SAR 75.33 million. The company did not disclose specific reasons for the profit decline in English, noting that, per parallel market rules, detailed statements were published in Arabic only. Shareholders’ equity remained stable.

Al Rashid Industrial H1 2026 Net Profit Up 1.4% on 16% Revenue Growth

Al Rashid Industrial Co.(9580.SA) posted a net profit of SAR 21.78 million for H1 2026, up 1.4% year-on-year, as revenue rose 16.3% to SAR 97.38 million. Growth was driven by expanded production lines, new market entry, and stronger demand in both local and export markets. Net profit rose more slowly than revenue due to higher operating costs. Shareholders' equity increased by about 20%.

USA Stocks

Moderna Soars 177% in One Day, Shorts Lose $5.5B

Moderna(MRNA.US) shares jumped 177% after announcing its personalized cancer vaccine with Merck cut late-stage melanoma relapse risk. Shorts lost about $5.5 billion in one day, and $7.7 billion total this year. The stock had already doubled in 2026, following years of declines after COVID vaccine demand fell. Analysts call the trial results a “milestone” and raised ratings, seeing strong growth potential for Moderna's cancer business. Short interest has dropped from 20% to 14% of shares this year.

Apple’s AI AirPods With Camera Still Planned for 2027 Launch

Apple Inc.(AAPL.US)’s camera-equipped AI AirPods are still set for a 2027 release, despite recent software leaks and earlier delays from supply and software issues. The device will use low-res sensors for environmental scanning to boost Siri and AI features, not for taking photos or videos. Two models are in development, one based on AirPods Pro 3 and the other a new generation. Apple has not commented.