Public Markets 3 Days

Last updated: May 22, 2026, 11:31 AM ET

Equities & IPO Frenzy

The U.S. stock market extended its longest winning streak since 2023 as the S&P 500 pushed toward an eighth consecutive weekly gain, supported by an AI-fueled rally that has now lifted the index to its strongest earnings growth trajectory since 2021. SoftBank Group Corp. shares surged nearly 20% in Tokyo after reports that OpenAI and SB Energy are preparing U.S. IPOs, while chip designer Cerebras's $6.4 billion raise signaled robust demand ahead of what is expected to be a wave of mega-listings from SpaceX, OpenAI, and Anthropic. SpaceX is preparing for a record IPO that has sent its own shares trading like a Tesla-style momentum play, prompting KNDS NV and OHB SE to weigh delaying their own share sales to avoid the market melee. Bank of America strategist Michael Hartnett warned that such mega-IPOs risk pushing tech weighting in benchmarks beyond bubble-era levels, a concern echoed by short-seller Carson Block, who cautioned of an AI-created financial crisis. The equal-weighted S&P 500 remains unchanged since the war began, underscoring how the rally is concentrated in a narrow band of technology names.

European M&A & Deal Flow

European deal-making heated up as CVC Capital Partners and Groupe Bruxelles Lambert offered more than $12 billion for Italian drugmaker Recordati, valuing the century-old company at €10.9 billion in a deal that would extend the buyout group's bet on rare diseases. Meanwhile, Apollo Management launched a £1.5 billion bid for Bodycote, the FTSE 250 heat-treatment specialist, marking the latest U.S.-led attempt to acquire a London-listed industrial group. Across the Channel, Charlotte Tilbury upended Estée Lauder's planned €55 billion acquisition of Puig, forcing the Spanish beauty conglomerate to terminate merger talks and accept a 14% share price drop, while Estée Lauder's stock jumped more than 10% in premarket trading. Germany confirmed it will buy a 40% stake in tankmaker KNDS NV for several billion euros before its planned summer IPO, and Investec applied for an Irish banking license as it eyes expansion into the EU's largest financial market.

Commodities & Energy Prices

Oil prices climbed toward $105 per barrel as Brent futures headed for a new consensus price cap near $100 for 2026, driven by uncertainty over the Strait of Hormuz and stalled U.S.-Iran diplomatic efforts. European natural-gas contracts tracked a near 2% weekly gain on supply tightness, staying below €50 per megawatt-hour even as an impasse over Hormuz reopening negotiations fueled broader energy anxiety. Copper traded like a high-flying tech stock as investors bet that surging AI-driven power demand will underpin industrial metal prices, while rice benchmarks extended their rally to one-year highs on crop concerns across Asia. The Iran war's energy cost shock is expected to push euro-area inflation to its fastest pace since 2023 while slowing growth markedly, according to the European Commission. Fertilizer costs spiked in Brazil at the worst possible moment for farmers, and Walmart warned that customers are rationing petrol as fuel expenses squeeze household budgets, sending its shares lower.

Canada & Inflation Data

Canadian equities hit a record high on Friday as financial and technology stocks led the benchmark higher, extending a multi-week rally that has lifted the index since early March. The advance came even as producer prices rose 2% in April, their fourth straight monthly increase, and both Deutsche Bank and JPMorgan increasingly wager that the Canadian dollar will weaken through 2026 as tame inflation readings prompt a rethink of Bank of Canada rate expectations. Statistics Canada's industrial product price index continued its upward trajectory, putting pressure on the central bank to keep monetary policy restrictive.

Debt Markets & Structural Shifts

Gilts rallied to post their biggest weekly yield drop since 2024 after a sharper-than-expected slowdown in UK inflation curbed rate-hike wagers, while London traders were stuck with ultra-long bond positions gone wrong after a bet on historic UK government bond discounts unwound. The UK gilt rally was fueled by a Burnham pledge to stick to fiscal rules and a retreat from bets on higher Bank of England rates. In fixed income, the European Central Bank's Christine Lagarde stressed that long-term inflation expectations remain on target at 2%, and euro-zone wage growth had already been slowing before the Iran war drove headline inflation higher. China launched an unprecedented crackdown on illegal cross-border securities trading, penalizing brokers including Futu and Tiger Brokers in an effort to close loopholes that allowed retail traders to evade capital controls.

Retail & Consumer Sentiment

Warehouse clubs and off-price retailers continued to attract inflation-weary shoppers, with BJ's Wholesale Club logging higher sales on membership growth and TJX Cos. raising full-year guidance after a strong first quarter. Meanwhile, Kayne Anderson Capital Advisors raised $5.12 billion for its largest-ever opportunistic real estate fund, blowing past a $3 billion target amid booming demand for healthcare properties. The floral delivery company 1-800-Flowers is investing in brand building after over-relying on paid search clicks, while Avarisse Crawford, a 33-year-old consumer, has scaled back her "fun budget" as gas prices hover near $4.50 per gallon, a trend Walmart executives said is playing out across the country.