Public Markets 3 Days

Last updated: May 18, 2026, 11:35 PM ET

Labor & Strikes

The Long Island Rail Road reached a tentative settlement to end a three-day strike that halted service for millions of commuters, with phased train operations expected to resume Tuesday at noon following negotiations between the railroad and 3,500 striking workers. The labor dispute could influence New York's gubernatorial race as Governor Kathy Hochul faces Republican challenger Bruce Blakeman, who has criticized her administration's handling of the transportation crisis. Meanwhile, New York City hotel housekeepers will earn over $100,000 annually under a new union contract that substantially boosts wages amid the city's soaring cost of living, marking a significant victory for organized labor in the hospitality sector.

Banking & Finance

Standard Chartered announced plans to cut almost 8,000 jobs as part of CEO Bill Winters' strategy to drive sustainable growth through AI adoption, with the Asia-focused lender targeting an 18% return on tangible equity by 2030. The bank promoted former critic Manus Costello to chief financial officer, concluding a months-long search to replace Diego De Giorgi. In a separate move, Blackstone committed $5 billion in equity capital to launch a new AI cloud company with Google, with the private capital group becoming majority owner in a venture that will bring 500MW of data center capacity online next year. Treasury yields edged higher across the curve as markets monitored Middle East tensions, while foreign holdings of U.S. Treasuries fell in March from record highs as overseas investors dumped short-term bills while adding to longer-dated securities.

Fixed Income & Currencies

Japanese government bonds mostly rose on technical rebound following Monday's selloff, with prices gaining in early Tokyo trading as traders positioned ahead of potential intervention. U.S. Treasury yields climbed slightly as geopolitical uncertainty persisted, while the WSJ Dollar Index fell 0.23% to 95.66, snapping a five-trading-day winning streak. A senior Japanese Finance Ministry official sowed doubt over potential U.S. Treasuries sales to prop up the yen, suggesting such maneuvers could backfire. Global bond routs added to India stock bulls' rupee worries as yields in the U.S., UK and Japan climbed to multi-year highs, pressuring emerging market currencies.

Markets & Trading

Equity markets declined as Iran optimism faded, with the S&P 500 losing ground even after President Trump said he was holding off on fresh Middle East strikes. Stock volatility increased as investors turned to exotic options to hedge against a potential tech bubble correction, while Citadel Securities' Scott Rubner sees risk of flow unwind in powerful fund flows that drove U.S. stocks to record highs. Hedge funds ramped up bearish sterling bets following Manchester Mayor Andy Burnham's pathway to potentially challenge for UK prime minister, raising currency concerns. Suspicious betting in Washington rose sharply with regulators seeking information from Kalshi and Polymarket over wagers tied to political events and military operations.

M&A & Corporate Activity

Analog Devices is nearing a $1.5 billion acquisition of closely held Empower Semiconductor in cash, according to people familiar with the matter, as the chipmaker expands its power management portfolio. A Morgan Stanley-led group reached a deal to sell Chicago's parking meters to New York-based Stonepeak, marking a significant infrastructure transaction in Mayor Brandon Johnson's administration. SpaceX's IPO plans could hand a $20 billion stake to hedge fund D1 Capital, positioning the rocket maker for a potential listing next month. Lululemon urged shareholders to reject founder Chip Wilson's proxy fight after he escalated his campaign against the company's strategic direction.

Commodities & Energy

Chinese aluminum smelters are running at full capacity and beginning to test both production limits and demand constraints, with the surge in output pressuring global prices despite supply disruptions. Oil markets showed signs of strain as Iran's Kharg Island export facility remained devoid of tankers for at least a tenth day, underscoring the impact of U.S. naval blockade measures. Natural gas futures extended gains to four straight sessions as power-sector demand rose to meet cooling needs across the southern U.S. and East Coast, though cooler weather was expected to provide some relief. Gold extended gains as hopes for an Iran truce eased inflationary concerns weighing on bullion.

Technology & AI

Google made a major chip push through its Blackstone-backed AI cloud group, investing $5 billion to bring 500MW of data center capacity online next year as demand for AI infrastructure accelerates. Meta reassigned 7,000 employees to focus on AI development just two days before laying off 10% of its workforce, or approximately 8,000 employees, signaling aggressive restructuring. AI chip startup Tenstorrent is drawing takeover interest from Intel and Qualcomm as upstarts seek to challenge Nvidia's dominance in the artificial intelligence chip market. Nvidia's CEO Jensen Huang expects Chinese authorities to eventually allow U.S. AI chip imports, following his participation in President Trump's summit in Beijing.

International Affairs

President Putin and President Xi are set to discuss the Power of Siberia 2 pipeline at the China summit, with talks coming just days after Donald Trump's visit to Beijing amid escalating Middle East tensions. Middle East conflict created new economic opportunities for Syria as the blocked Strait of Hormuz redirected shipping and trade flows through the region. Malaysia introduced measures to help airlines hit by the Iran war, ensuring operational stability and easing financial strain on carriers affected by soaring fuel costs and route disruptions. Emergency energy measures spread to nearly 80 countries as oil stockpiles run low amid the Middle East conflict, with governments implementing conservation protocols to maintain supply stability.