Public Markets 3 Days

Last updated: May 17, 2026, 8:31 AM ET

Equities

Global stock markets showed divergent trajectories as investors weighed the Iran war's economic fallout against resilient corporate earnings. The S&P 500 notched fresh records while Asian markets remained subdued following Trump's meeting with Xi Jinping, with Beijing indicating some tariff reductions were discussed but offering no concrete breakthroughs. Chinese AI groups continued to outpace Western rivals in video generation, with ByteDance and Kuaishou setting new quality benchmarks that are reshaping advertising and entertainment workflows.

Bain Capital closed its largest Asia fund at $10.5 billion, raising $2.1 billion more than targeted from external investors as buyout firms bet on continued dealmaking in the region. Meanwhile, SpaceX is preparing to file its long-awaited IPO as soon as Wednesday, potentially opening one of the most significant public offerings of the year. Berkshire Hathaway made a fresh bet on Delta Air Lines during Ted Abel's first quarter as CEO, exiting positions in Amazon, Mastercard, Visa and United Health.

Fixed Income & Yields

Bond yields surged globally, threatening to knock the AI stock rally off course as investors increasingly acknowledge the risk of rising rates. The 30-year yield approached its highest level since 2007, with the selloff in sovereign bonds creating a divergence from equity market euphoria. Japanese yields hit record highs, triggering fund manager bets that domestic investors would sell U.S. Treasuries to repatriate capital into JGBs.

Corporate bonds attracted strong demand as credit investors chased high yields, shrugging off Middle East geopolitical risks and focusing on robust blue-chip earnings. The U.S. leveraged loan market saw firms borrowing more than expected as they capitalized on strong investor appetite for riskier debt, driving bigger deal sizes. Foreign investors expressed growing concern over a potential rollback of Japan's corporate governance reforms, threatening a rally that had pushed equities to record levels and attracted major foreign capital inflows.

Commodities

Hedge funds boosted bullish copper bets to a five-month high before prices climbed to fresh records on the Comex exchange, reflecting expectations of sustained demand for electrification and infrastructure spending. Coal made a comeback as countries turned to the polluting but reliable energy source after the Iran war effectively shut the Strait of Hormuz, disrupting oil shipments through the key waterway.

The oil shock from the Middle East conflict is causing an estimated $45 billion economic rupture, slamming consumers while boosting energy investors. Nigeria's Oando reported a windfall as buyers seek safer oil supplies outside the Gulf, with the Iran war "shattering" the region's reputation as a stable operating environment. Gulf freight rates jumped as shipping companies turned to trucks to move cargo, facing thousands of dollars in extra costs as lorries could only carry a fraction of goods normally shipped by sea.

Deals & Corporate News

Boeing shares slid after Trump's China summit produced fewer concrete deals than hoped, though the president claimed Beijing would purchase 200 planes—a deal Beijing has not confirmed. The agreement would be a major win for Boeing, which has lost ground to Airbus in one of the world's largest aviation markets. Trump's $40 billion Hormuz ship insurance facility has done zero business due to the absence of naval escorts through the Strait of Hormuz.

A Chinese data centre spin-off called Day One plans a dual IPO in Singapore and the U.S. targeting $5 billion using new rules intended to boost Asian listings in the city-state. India emerged as one of the biggest losers as the AI trade reshapes global investment flows, with the country having missed out on the artificial intelligence boom that has propelled other markets. The Bank of Korea's newest board member flagged mounting inflation and financial-stability risks tied to the Middle East conflict, housing prices and capital flows.