Public Markets 24 Hours

Last updated: May 16, 2026, 8:32 PM ET

Markets

The bond selloff threatening to knock AI stocks off course continued to weigh on equity markets, as investors fervently chase the tech rally while acknowledging that rising yields pose a significant risk to equities. The surge in stock prices has simultaneously propelled the use of tax-loss harvesting strategies, with investors seeking to lock in gains while minimizing tax liabilities through carefully structured trades. In the UK, government bonds are proving less vulnerable than anticipated, with gilts defying expectations of underperformance as the market reassesses the Bank of England's policy path.

Trade & Geopolitics

China's Ministry of Commerce indicated that tariff reductions were discussed at the Trump summit, claiming the countries struck a preliminary agreement to reduce some tariffs—seemingly contradicting President Trump's characterization of the talks. However, Trump left Beijing without any concrete breakthroughs, highlighting the risks of his personality-driven foreign policy that rests on the belief he can defend U.S. interests through charm and force. The president further raised eyebrows by suggesting a potential arms deal for Taiwan was a "very good negotiating chip" in talks with Beijing, raising questions about the reliability of U.S. support for the island democracy. Meanwhile, Secretary of State Marco Rubio, once a China hawk who even hinted at the need for regime change as a senator, now strikes a softer tone of cooperation aligned with Trump's approach. Russia will host President Xi in Beijing on Tuesday, just days after Trump's visit, with the Kremlin saying Putin watched the U.S. trip closely.

Energy & Commodities

The global rush to stockpile manufactured goods on fears of an energy-supply crunch continues to overshadow business surveys as the Middle East war enters its third month. An analysis of oil export data reveals which nations have benefited from higher prices—and which have lost significant revenue—as the Iran war oil shock reshapes global energy flows. India tightened rules for silver imports as part of a series of measures to preserve foreign-exchange reserves and defend the rupee after the currency sank to an all-time low. Meanwhile, Abu Dhabi National Oil Co. continues loading liquefied natural gas onto tankers masking their location in the Persian Gulf as the producer pushes to get more fuel through the Strait of Hormuz. Adnoc's strategy underscores the lengths energy exporters are going to navigate shipping risks amid regional tensions.

Corporate Deals

Next Era Energy Inc. is in discussions to combine with utility rival Dominion Energy Inc. in a mostly stock deal, potentially creating one of the largest utility mergers in recent history. Vin Fast Auto Ltd. said its planned sale of two Vietnamese factories will enable the electric vehicle maker to shed about 182 trillion dong ($6.9 in debt and obligations while potentially speeding up its path to profitability. The deal rush in rare earths intensifies as Western nations seek to loosen China's grip on critical minerals, with a small group of companies competing for assets in what analysts describe as a "very hot" market.

Economy

U.S. debt has now grown larger than the economy—a startling milestone that Washington quickly brushed off as the mounting problem continues to compound. European Central Bank Governing Council member Yannis Stournaras suggested that a modest rate hike could temper inflation without causing economic damage, offering a counterpoint to more hawkish central bank voices. The equity story that powered European stocks has unraveled as investors seek shelter from a global energy shock and buy into the AI frenzy, with Europe lacking the ingredients needed to make its stock market a winner.

Labor

The Long Island Rail Road, the nation's busiest commuter line, suspended service for the first time in more than 30 years after labor groups and transit officials failed to reach a deal on wage increases. The strike marks the first walkout since 1994 and affects hundreds of thousands of commuters on America's busiest passenger rail service.

Endowments

The head of Harvard's endowment told the board he plans to retire, concluding a tenure under which the university's endowment grew from $35.7 billion to nearly $57 billion. N.P. Narvekar's departure will trigger one of the most consequential succession processes in higher education philanthropy.