Public Markets 3 Days

Last updated: April 17, 2026, 11:30 AM ET

Geopolitical Shocks & Commodity Markets Rebound

Global markets experienced significant volatility driven by developments surrounding the Strait of Hormuz, culminating in a major relief rally late in the week. US stocks climbed to record highs on Friday after Iran declared the Strait of Hormuz open following a truce between Israel and Lebanon, easing fears of an oil supply shock that had previously shadowed the economic outlook. This optimism caused oil prices to plunge dramatically, sending Treasury yields to their lowest levels in a month as the safe-haven trade unwound. The dollar subsequently erased all war-related gains after Tehran confirmed commercial traffic was "completely open," a declaration that also saw aluminum prices sink in London. The reopening allowed an Iraq-bound supertanker to successfully transit the Persian Gulf on its second attempt, marking the first crude carrier heading west since the blockade began, though logistical disruptions persist, evidenced by US diesel traders turning to rail transport to manage scrambled fuel flows.

The immediate easing of the supply crunch led to dramatic price adjustments across energy sectors. European power futures closed the week below pre-war levels, supported by surging renewables generation and lower gas prices linked to ceasefire optimism. Conversely, the war’s lingering effects are still impacting industrial supply chains; Dow and Exxon Mobil Corp. are raising plastic prices due to upstream supply shocks, while chocolate makers like McCormick are deepening flavor footprints amid rising cocoa input costs from volatility. Meanwhile, international actors are securing alternative supplies, with South Korea securing millions of barrels of crude via routes bypassing Hormuz, and Australia purchasing 250,000 tons of urea fertilizer from Indonesia to offset war-related gaps.

Central Bank Vigilance & Inflation Risks

Despite the market relief rally, central bankers remain cautious regarding persistent inflationary pressures stemming from the conflict. ECB President Christine Lagarde stated that risks to the Eurozone’s inflation outlook are skewed to the upside as officials tally the economic damage. This aligns with updated data showing Euro-zone inflation was faster than initially reported in March at 2.6%, suggesting underlying price strength. ECB Governing Council member Madis Muller cautioned that while vigilance against inflation risks is necessary, the central bank must avoid rushing into rate hikes. In the US, the sustainability of the stock market’s recent ascent, which saw the S&P 500 and Nasdaq 100 reach records, hinges on central banks pivoting back toward rate cuts, according to Goldman Sachs.

Equities, Tech Performance, and IPO Activity

Tech stocks continued to drive market highs, with the Nasdaq logging its longest winning streak since 2021 as investors focused on the potential reopening of Hormuz. Intel Corp. shares leaped to their highest level since the dot-com era on Friday, fueled by growing belief in the chipmaker’s turnaround strategy. This strength is mirrored globally, as Taiwan overtook the UK in stock market value due to the booming AI chip sector, with TSMC reporting record first-quarter profit and retail investors driving leverage to 25-year highs. Many investors believe US equity valuations are only justifiable if one subscribes to the long-term potential of AI. However, the speculative fervor has its detractors; Allbirds Inc. stock plunged after its pivot toward AI infrastructure proved to be a short-lived surge, prompting commentary that it is increasingly difficult to distinguish investing from gambling in an unstoppable market.

In capital markets, major banks reported strong activity despite geopolitical headwinds; Goldman Sachs and Morgan Stanley predicted IPO resilience as their equity capital markets revenue climbed at the start of the year. New listings are emerging across sectors, including Lumina Metals Corp. seeking to raise C$343.7 million in Toronto, and Permian Basin landowner Eagle Rock Land LLC filing for an IPO to expand holdings. Meanwhile, Asian giants are preparing major filings, with Reliance Industries Ltd. likely to file draft paperwork for Jio Platforms IPO next month, and Malaysia’s IAQ Group reportedly considering a 1 billion ringgit listing.

Corporate News & Alternative Assets

Corporate maneuvering continues amid economic uncertainty. Private equity firm EQT AB warned of exit hurdles for its clean-energy assets, reflecting growing challenges in that sector, which itself faces supply chain snags, such as the sulphur squeeze. In financial services, State Street reported higher first-quarter profit, aided by increased fee revenue from its foreign exchange trading desk. In major dealmaking, Abu Dhabi’s Axight acquired a stake in an Australian asset manager from Brookfield, adding to the M&A wave in the Gulf region despite the war disruptions. Separately, Blackstone arranged a $1.2 billion credit facility for Air Trunk’s data center expansion in Japan, while Johnson Controls International Plc is weighing the divestiture of businesses potentially worth up to $4.5 billion from its security division.

Sports & Legal Developments

In private market sports valuations, the San Diego Padres are nearing an MLB-record sale price of $3.9 billion, with private equity billionaire José E. Feliciano and Kwanza Jones set to acquire the team for nearly $1.5 billion more than the New York Mets sold for in 2020. In legal news, media tycoon Richard Desmond lost a £1.3 billion lawsuit contesting the regulator's award of the National Lottery contract to Allwyn. On the regulatory front, Lawyer John Eastman was disbarred after the California Supreme Court upheld a lower ruling finding he violated professional ethics rules regarding efforts to overturn the 2020 election.

Global Economy & Humanitarian Concerns

The International Monetary Fund is preparing to issue a statement warning that the Middle East conflict represents a “serious threat to the global economy”, noting the poorest nations will bear the brunt of the shock. This concern is echoed by European Central Bank officials, who are assessing the economic fallout. In response to supply disruptions, Kenya is seeking emergency World Bank funds to absorb the war’s impact, while Japanese doctors ordered the release of glove stockpiles amid concerns over threats to medical supply chains. Furthermore, the UK’s Chancellor of the Exchequer, Rachel Reeves, is drafting plans to delink gas and electricity prices, causing UK power stocks to fall on expectations of lower consumer prices. In commercial real estate, London landlord Workspace warned of a substantial profit hit due to lower rents and rising costs, forcing a dividend cut.