Public Markets 24 Hours

Last updated: May 16, 2026, 11:30 AM ET

Public Markets Wrap

Geopolitical flashpoints and inflation jitters dominated trading, with markets struggling to digest a barrage of crosscurrents. The killing of a top ISIS leader in a U.S.-Nigerian raid and the assassination of Hamas’s Gaza military chief provided fleeting risk-on moments, but those were quickly overshadowed by President Trump’s suggestion he could use Taiwan arms sales as a bargaining chip with China, rattling sentiment in Asia. Oil prices surged past $78 on fears the Iran war could trigger a supply shock, while gold edged lower despite a softer dollar as real yields climbed. In Europe, Latvian political uncertainty deepened after the president nominated a new prime minister, adding to regional bond volatility.

Fixed Income

A relentless global bond selloff intensified, with the 10-year U.S. Treasury yield closing near 4.6%—its highest in over a year—as inflation fears from the Middle East conflict mounted. The 30-year yield hit a 2007 peak, pressuring long-duration assets. European bonds underperformed after remarks from Greater Manchester mayor Andy Burnham raised concerns about a potential loosening of UK fiscal rules, while German bunds slumped as investors shunned the region’s growth story. Corporate bonds found some footing amid strong earnings, but hedging costs surged, threatening to disrupt the $20 trillion Treasury futures market.

Equity Markets

The tech and AI-fueled rally faced its sternest test as rising yields pressured high-growth valuations. The S&P 500’s long winning streak stumbled, though mega-cap tech held up relatively well amid persistent enthusiasm for artificial intelligence. Retail euphoria cooled after a six-week fund that had become a poster child for the AI trade saw heavy outflows. In contrast, defense stocks rallied on reports NATO would press European arms makers to boost production. Meanwhile, the IPO market showed signs of life with Vin Fast’s plan to spin off factories and raise $6.9 billion, though used EV caution grew.

Commodities & Currencies

Oil’s climb extended as the Strait of Hormuz closure threatened global inventories, with hedge funds boosting bullish copper wagers to a five-month high on supply concerns. Gold’s weekly loss accelerated as real yields rose, while silver collapsed in a volatile week. The euro drew support from expectations of $200 billion in hedging flows, but the dollar remained under pressure amid Trump’s trade comments. The British pound faltered on political worries.

Corporate & Deal News

Berkshire Hathaway doubled down on airlines, amassing a $2.6 billion Delta stake even as it exited positions in Amazon and Visa. Meanwhile, the conglomerate sold $8 billion in Chevron as oil prices soared, a contrarian move. In utilities, Next Era and Dominion explored a $400 billion tie-up to meet AI data center demand. Private equity rushed into rare earths as the West sought to loosen China’s grip, while BlackRock’s private credit fund faced a federal probe over valuation practices.

Regional Markets

European equities staggered as the energy shock and AI frenzy diverted capital from the continent. In Asia, Japan’s Nikkei eased as bond yields rose, while Australian miners benefited from the commodity surge. Canada’s pipeline debate heated up after a carbon tax deal paved the way for increased oil exports to Asia. Argentina’s YPF announced a $25 billion oil project, the largest investment since Milei took office, as the country bets on energy to fuel its economic turnaround.

Cryptos & Alternatives

The crypto sector struggled as Kraken cut 150 jobs and delayed its IPO due to falling prices. A major sponsor reconsidered a conference partnership after an “immature” after-party, highlighting ongoing reputational risks. Meanwhile, a 26-year-old entrepreneur gained traction with buffer-focused ETFs, chipping away at giants like BlackRock and Goldman.

Upcoming Events

All eyes turn to the Fed, where Chair Powell’s successor prepares to tackle a “regime change” amid soaring debt and inflation. In the UK, a potential Burnham challenge to Starmer looms over gilts. The Supreme Court weighs Virginia’s voting map, while Louisiana’s Senate primary tests Trump’s influence.