Public Markets 24 Hours

Last updated: May 16, 2026, 8:30 AM ET

Geopolitics & Energy

Oil futures settled higher as the prolonged closure of the Strait of Hormuz raised concerns about dwindling global inventories, extending a week of gains that pushed the 10-year Treasury yield to nearly 4.6% and the 30-year to its highest level since 2007. Crude sentiment was further stoked after President Trump returned from Beijing without securing a Chinese commitment to pressure Iran into reopening the waterway, while U.S. and Nigerian forces killed an ISIS leader the president said had been hiding in Africa, a development he claimed has "greatly diminished" the group's global operations. Against this backdrop, Abu Dhabi National Oil Co. continued loading LNG onto tankers with masked locations in the Persian Gulf, and the White House's $40 billion Hormuz ship insurance facility has seen zero uptake because the absence of naval escorts has made the program unworkable. Adnoc's workaround has kept supply lines open even as Iran oil flows from Kharg Island appear to have been interrupted by a spill rather than military action.

U.S.-China Tensions & Trade

President Trump turned Taiwan arms sales into a bargaining chip during his Beijing summit, telling President Xi that a potential arms deal was a "very good negotiating chip," raising questions about the durability of U.S. security commitments in the region. The Kremlin announced that Vladimir Putin will travel to Beijing on Tuesday for talks with Xi, saying he watched Trump's visit "closely", while Boeing secured a deal for 200 planes though shares slid as expectations disappointed when Beijing reportedly committed only to expanding agriculture and oil purchases. Meanwhile, Marco Rubio softened his China stance to align with the administration, abandoning years of hawkish rhetoric that included hints of regime change, and U.S.-China relations remain fraught behind the scenes over Iran, artificial intelligence, and espionage. Trade diplomacy was on display as Trump touted "fantastic trade deals" with Beijing but offered scant detail on what was agreed.

Bond Market Turmoil

Government bonds tumbled globally as inflation fears from the Iran war shock drove the 30-year U.S. Treasury yield to its highest level since 2007, prompting G-7 finance chiefs to convene and discuss the rout. The selloff threatens to disrupt the Treasury futures market as traders overhaul positions amid climbing yields, and the euro could climb to levels last seen five years ago if hedging costs drop, potentially channeling more than $200 billion in flows into the currency. UK gilts fell as traders braced for an Andy Burnham challenge to Keir Starmer, with concerns that a change in leadership could loosen the country's self-imposed borrowing limits, even as FT analysis argued UK sovereign debt is not the outlier it appears to be. ECB Governing Council member Yannis Stournaras said a modest rate hike could temper inflation without inflicting economic damage, a middle path that markets are now pricing in as rate-cut expectations swirl.

Deals, IPOs & Corporate Moves

Next Era Energy is in talks to merge with Dominion Energy in a mostly stock deal that would create a $400 billion U.S. utility giant, timed with booming demand for electricity to power AI data centres. SpaceX is planning to file for its IPO as soon as Wednesday, with the long-awaited listing potentially valuing the rocket firm at a multiple of its revenue that has attracted intense investor interest. Fervo Energy raised $1.9 billion in its IPO, bringing geothermal energy to public markets using oil-and-gas drilling techniques, while Erock Inc., a modular power systems maker for data centres, filed for its own U.S. IPO. Berkshire Hathaway sold about $8 billion of Chevron shares in the first quarter as the oil giant's stock hit record highs, but amassed a $2.6 billion stake in Delta Airlines under CEO Ajit Jain, reigniting the conglomerate's complex relationship with the airline industry. Bill Ackman disclosed a new stake in Microsoft, arguing the tech company is underpriced as AI ambitions drive valuation shifts.

Crypto, AI & Private Markets

Crypto exchange OKX reconsidered its sponsorship of Consensus Miami after an "immature" pole-dancing after-party drew criticism, underscoring the sector's struggle to shake its reputation for excess. OpenAI acquired Weights.gg, a social network for sharing AI voice-cloning algorithms, even as the broader AI industry absorbs an unprecedented share of venture capital, with Anthropic raising $30 billion more. On the private credit front, U.S. federal prosecutors are scrutinising BlackRock's private credit fund over valuation practices, while Wall Street analysts warned that adding slivers of hot pre-IPO companies to portfolios can be far trickier than buying public stocks and that bargain-hunting in private credit may not pay off. Hedge funds pushed bullish copper wagers to a five-month high as prices climbed toward fresh records, and inflation risk is giving corporate bonds the edge over sovereigns as credit investors buy high-yield debt on the back of blue-chip earnings.

Commodities & Inflation

Gold ended the week down 3.49% at $4,555.80 per ounce while silver collapsed below $80 an ounce in a week of extreme price swings, and both metals posted sharp losses as the dollar strengthened on higher-for-longer rate expectations. Copper is catching a bullish tailwind from data centre demand, and natural gas futures extended their winning streak as warmer weather forecasts point to increased consumption. Argentina's YPF announced a $25 billion oil project, its largest investment since President Milei took office, while a modest ECB rate hike could limit economic pain from inflation that continues to pressure bond markets. The S&P 500 has posted a long weekly winning streak despite accelerating inflation, driven by strong corporate earnings, but the rally is confronting higher rates and mounting price pressures that could test valuations heading into summer.