Public Markets 3 Days

Last updated: March 26, 2026, 8:30 PM ET

Geopolitics & Market Volatility

Global markets continued to grapple with the fallout from the extended conflict in the Middle East, prompting US stocks to suffer their worst session since the crisis began, with Treasury yields climbing amid fresh inflation anxieties. President Trump extended the deadline for Iran talks by ten days, leading to a cautious assessment by Asian equities which were set to decline following the Wall Street plunge. This uncertainty over a swift resolution has kept oil traders fatigued by the massive price swings, causing them to throttle back trading flows due to conflicting signals from Washington and Tehran. Further compounding energy market instability, Spain announced a deal with Algeria to increase gas imports as a direct response to heightened instability linked to the Iran war.

The US government’s handling of the crisis continues to draw political and market attention, with Senator Murkowski drafting formal authorization for military force in Iran, seeking to place operational parameters around the ongoing action. Meanwhile, the domestic situation is strained by a Department of Homeland Security funding lapse that is set to become the longest partial government shutdown in history if not resolved over the weekend, a chaos that directly impacted air travel. In response to the resulting travel snarls, President Trump stated he would sign an emergency order to ensure Transportation Security Administration agents receive pay, as Republicans pressed for a national emergency declaration to address the situation avoiding agency closure.

Fixed income markets are showing signs of stress, with the ease of trading U.S. Treasurys worsening in recent weeks as traders attempt to hedge against escalation scenarios that could compel the Federal Reserve to hike rates sooner than anticipated. The ongoing turmoil has led to a bond market nearing an inflection point as the initial rush by traders to unwind short positions in US futures slows, setting up the next phase of market positioning. This rate-hike hedging also rippled into housing, where the average 30-year mortgage rate climbed again to 6.38 percent, marking the fourth consecutive increase since the war commenced and dampening spring season prospects. In Europe, the selloff in UK and European bonds is forcing everyday citizens to confront the implications of rising yields.

Corporate Dealmaking & Asset Management

Alcoholic beverage giants are exploring consolidation amid an industry downturn, with Pernod Ricard holding talks regarding a largely stock-based combination with Jack Daniel’s maker Brown-Forman, a deal that could be weeks from finalization. In the asset management sector, Capital Group is acquiring its Los Angeles headquarters building as part of expansion plans that also involve opening a new office in Charlotte. Elsewhere, the world’s largest stablecoin issuer, Tether, hired KPMG as auditor and brought on PwC simultaneously to prepare internal systems ahead of a planned US expansion. In private credit, JPMorgan Chase is planning a novel fund that will allow investors quarterly redemptions of 7.5% and potentially monthly withdrawals, signaling a move to address liquidity concerns in the $1.8 trillion market.

The fallout from geopolitical risk is directly impacting asset values, as evidenced by the Fundrise Innovation Fund shares sliding a third after Citron Research disclosed it was shorting the stock following a short report. Meanwhile, the ongoing instability has prompted financial institutions globally to quietly increase their cash buffers to guard against potential credit meltdowns or market distress. In litigation news, a federal judge deferred a ruling on Multi-Color Corp.'s loan, allowing the label-maker to access more of its $250 million Chapter 11 financing but stopping short of immediately approving a contested feature of the debt structure.

Technology & Regulatory Shifts

The artificial intelligence sector saw strategic shifts as OpenAI displayed business discipline by abandoning plans for an erotic chatbot and shelving its Sora video app project. In the semiconductor space, GlobalFoundries filed patent infringement suits against Tower Semiconductor, alleging infringement on 11 US patents covering core technologies. Tech titans like Alphabet and Amazon continue to command enormous global resources, underscoring the relentless march of the omniscalers. In regulatory action, the Federal Trade Commission issued warnings to payment processors like Mastercard and Visa, cautioning them against denying financial services access based on customers' political or religious viewpoints.

In private technology, SpaceX is scheduling investor briefings for April as advisers prepare filings for what could be the largest-ever initial public offering, a move occurring as CEO Elon Musk’s X platform undergoes restructuring to boost profit. Separately, a judge issued a court order blocking the Pentagon’s security threat designation against AI group Anthropic, ruling the classification as a 'supply chain risk' was inconsistent with stated US national security objectives. In the gaming sector, Epic Games laid off over 1,000 employees, representing roughly 20 percent of its workforce, citing a slump in the performance of Fortnite.

Sector Spotlights & Economic Indicators

Electric vehicle makers are seeing an uplift as surging oil prices—a direct result of the Iran war—brighten the sales outlook for companies like BYD Co., whose shares are tracking toward their best monthly performance in over a year. Conversely, the energy price shock is putting pressure on global economies already burdened with over $100 trillion in public debt. Germany, for example, faces a risk that its 2026 growth rate could halve if the conflict is prolonged. In response to high global oil costs, Thailand’s government slashed subsidies, leading to a 22% fuel price jump for motorists.

Automakers faced supply chain difficulties, with Jeep Cherokee production halting due to a payment dispute between Stellantis and supplier ZF Chassis Modules that idled a Mexican factory since mid-March, while Jaguar Land Rover will shut a UK plant for nearly two weeks following a supplier fire, months after a major cyberattack. In aviation, traveler disruption from the TSA chaos is benefiting rental companies, with Hertz and Avis shares soaring on expectations that travelers will opt for cars over struggling airport security lines. Meanwhile, the Oscars ceremony will move venues outside of Hollywood starting in 2029 as part of a deal with developer AEG.