Public Markets 3 Days

Last updated: May 23, 2026, 8:33 AM ET

Public Markets Briefing

Market Performance & Sentiment

U.S. stocks extended their winning streak for the eighth consecutive week, with the S&P 500 reaching levels not seen since 2023, defying concerns over geopolitical tensions and inflation. The broad rally overcame investor anxieties about the Iran conflict and AI boom valuations, as risk appetite returned amid growing optimism about potential peace talks. Meanwhile, the dollar stabilized near current levels as positive sentiment surrounding US-Iran diplomatic progress offset traditional safe-haven flows. Emerging-market assets posted solid gains across the week, with stocks and currencies benefiting from the improved geopolitical outlook, though concerns remain about the persistence of inflationary pressures in the global economy.

Technology IPO Race

The upcoming IPOs of SpaceX, OpenAI and Anthropic are set to create a fundraising battle among Silicon Valley's most prominent figures, with Elon Musk, Sam Altman and Dario Amodei competing for Wall Street's deepest pools of capital. SpaceX positioned itself as an AI contender targeting a $26.5 trillion market opportunity, while investors face the challenge of deciding which technology vision they prefer in what's being called the "giant IPO bake-off". The SpaceX IPO promises to be historic as the largest debut ever, potentially opening only in the afternoon due to the unprecedented volume of shares expected to trade. Analysts note that these listings will test market appetite for high-growth tech companies with uncertain near-term profitability.

Central Bank Policy & Inflation

The European Central Bank faces mounting pressure to raise interest rates next month to preserve credibility amid persistent inflation in the euro zone's four largest economies. Governing Council member Yannis Stournaras indicated that maintaining central bank credibility now "may be inevitable" as inflation data shows signs of becoming entrenched. Meanwhile, Federal Reserve Bank of Richmond President Tom Barkin warned that repeated supply shocks are testing the inflation anchor in the U.S. economy, with the ability of businesses and consumers to tolerate price increases determining whether the Fed can successfully control inflation. In Mexico, annual inflation slowed in line with expectations following the central bank's conclusion of a two-year easing cycle, providing some relief to the Latin American economy.

Energy Markets & Geopolitics

Global factory activity continued to weaken amid persistent inflation pressures during the third month of war-induced energy disruptions, with manufacturing showing particular strain in energy-intensive sectors. India's state-run refilers raised fuel prices for the third time in eight days, implementing increases for both diesel and gasoline to help processors cut losses on discounted sales and control surging demand. In the U.S., natural gas futures retreated below $3 as a cooler weather outlook reduced expected power-sector demand, despite continued strong liquefied natural gas export flows. The situation in the Middle East remains tense, with regional mediators rushing to save the US-Iran cease-fire amid disagreements over Iran's uranium stockpile and transit fees for the Strait of Hormuz.

M&A Activity & Corporate Finance

Private equity firms have found a new gold mine in artificial intelligence, as deal activity reached record highs with unloved companies suddenly becoming acquisition targets as AI integration promises transform valuations. Lantheus Holdings is exploring a potential $7 billion sale after receiving a takeover offer from Curium, reflecting continued consolidation in the radiopharma sector. In the debt markets, Danaher Corp. completed a record $3 billion private-placement bond sale, taking advantage of favorable conditions for large institutional investors. Financial services firm Investec applied for a banking license in Ireland as it seeks to expand into Europe and tap one of the world's largest financial markets amid Brexit-related regulatory shifts.

International Market Developments

Chile's state copper producer Codelco fired an executive and reprimanded several others after an internal audit found the company had overstated part of its 2025 output by misclassifying material requiring further processing. In India, JSW Motors secured $826