Public Markets 24 Hours

Last updated: June 24, 2026, 5:30 AM ET

Public Markets Briefing

Tech & AI Selloff & Rebound

Global technology stocks showed signs of stabilizing after a sharp, two-day selloff that erased nearly $1.3 trillion from the market capitalization of Nasdaq 100 companies. Fears surrounding the sustainability of the artificial intelligence boom triggered a significant rout, with AI-related stocks particularly hard-hit. Despite the volatility, Nasdaq futures pointed to a positive open as investors began to re-evaluate valuations. Investors are now closely watching Micron Technology's earnings report for further clues on the health of the AI sector, as the company's performance is seen as a barometer for the broader industry. South Korean chipmakers, including Samsung and SK Hynix, saw their shares gyrate wildly, with leveraged ETFs likely selling an estimated $6 billion of shares to maintain ratios amid the turmoil driven by AI doubts.

Defense Sector Dynamics

The European defense sector faced mixed fortunes, with Rheinmetall AG shares plummeting as much as 16% following reports that Germany may be shelving a major warships contract. The German defense contractor has now shed more than a third of its value year-to-date. In contrast, tankmaker KNDS initiated the process for a listing in Paris and Frankfurt, signaling investor appetite for defense stocks amidst a regional rearmament drive. Israel is also reportedly considering a US listing for its multi-billion-dollar state-owned defense giants, Israel Aerospace Industries Ltd. and Rafael Advanced Defense Systems Ltd., potentially to navigate stricter disclosure rules in their home market.

Energy Market Crosscurrents

Oil prices continued their downward trend, with futures falling in early Asian trade on indications of easing supply disruptions in the Middle East. The cost of diesel in the US dipped below $5 a gallon for the first time since mid-March, offering some relief to inflationary pressures on a key global fuel. However, geopolitical tensions persist, with around $125 billion of vessels and cargo remaining stranded in the Persian Gulf due to disruptions, making it the top risk for the shipping industry according to Allianz amidst ongoing uncertainty. China's independent oil refiners have responded by slashing operating rates to a nine-year low, impacted by the lingering effects of the US-Iran conflict on crude imports from Tehran. Russia is considering a ban on diesel exports to counter domestic shortages exacerbated by Ukrainian attacks on its refineries and fuel crunch.

Global Economic Signals

The euro sank to a one-year low against the dollar as falling oil prices eased pressure on the European Central Bank, prompting traders to scale back bets on further interest rate hikes amid a slowing economy. In Japan, Bank of Japan Governor Kazuo Ueda reiterated the risk of inflation exceeding the 2% target, signaling readiness for additional interest-rate hikes if necessary. Meanwhile, the US dollar touched its highest level since November, fueled by increased bets on the Federal Reserve hiking interest rates later this year as inflation concerns linger. Australia's central bank is betting that its rapid interest rate hikes will temper inflation without significantly impacting unemployment, citing the Phillips Curve relationship between prices and jobs.

Corporate & Deal Activity

Prologis saw its $16.6 billion takeover approach for UK-based Segro rebuffed, with the industrial real estate giant urging Segro shareholders to pressure the board into engagement. In the aviation sector, sixteen Airbus A380 aircraft are set to undergo urgent inspections after potential cracks were identified in wing components, prompting a directive from the European Union Aviation Safety Agency following earlier reports. Walmart is making a significant move into advertising technology with its $1.4 billion acquisition of Vibe.co, a company specializing in connected TV advertising, marking its largest deal in two years to bolster its ad business.

Emerging Markets & Investments

SK Hynix Inc. is planning a landmark US listing to raise approximately $29.4 billion, aiming to fund its expansion in the artificial intelligence supply chain and meet growing demand for memory chips globally. China's climate envoy suggested that oil and gas shortages stemming from the US-Iran conflict should accelerate the global energy transition away from fossil fuels. In India, billionaire Gautam Adani announced a new 10-gigawatt nuclear power initiative aimed at enhancing the nation's energy security through diversification. Singapore's Temasek Holdings Pte. and Oman's sovereign wealth fund are investing in a $255 million private credit financing for Vingroup JSC's hospitality arm, underscoring continued appetite for such deals in the region.

Regulatory & Market Structure

Hedge funds are poised to receive an exemption from a European Union requirement that would mandate investment managers categorize their products as ESG or not, a move that could simplify compliance. The European Union's fiscal oversight regime has navigated a significant test following a budget dispute, suggesting market resilience and stable credit ratings after the pandemic period. In fixed income, U.S. Treasuries gained as a selloff in stocks and declining oil prices tempered expectations for Federal Reserve interest rate increases in the coming year ahead of auctions. Meanwhile, the US Treasury market is showing signs of fragility, with calls for reforms to bolster its foundational stability amidst global turmoil.

Other Noteworthy Developments

Contemporary Amperex Technology Co. Ltd. (CATL) anticipates that between 10,000 and 20,000 electric vehicles will be equipped with its sodium-ion batteries this year, signaling progress in alternative battery technologies for EVs. China's central bank has weakened its daily yuan fixing for a fourth consecutive session, demonstrating flexibility in currency management as the US dollar advances against major currencies. The UK's grid operator issued a rare summer power supply warning due to soaring temperatures straining the energy system, as heat waves continue to break records across Europe and stress infrastructure.