Last updated: May 23, 2026, 2:31 PM ET

Public Markets Briefing

Global Markets Rally

Stock markets continued their upward trajectory with the S&P 500 clinching the longest weekly winning streak since 2023, rising for an eighth consecutive week as enthusiasm for artificial intelligence and other emerging technologies persisted. The broader market sentiment remained robust despite geopolitical tensions, with investors piling into equities even as war, inflation and concerns about the AI boom failed to dampen enthusiasm. Across the Atlantic, Canadian stocks jumped to record levels, hitting their highest mark since early March, while European indexes opened in positive territory with technology stocks leading the charge following gains in Asia and the U.S.

Energy Sector Dynamics

U.S. oil producers ramped up output to capture the price surge resulting from the Iran conflict, with the number of rigs drilling in the shale patch rising by the most in over four years. Meanwhile, natural gas futures retreated below the $3 level as a cooler weather outlook reduced expected power-sector demand, offsetting a pickup in LNG feedgas flows. However, the escalating tensions in the Middle East have raised concerns about potential economic fallout, with analysts warning that a closure of the Strait of Hormuz through August could risk a recession rivaling 2008.

Geopolitical Market Impact

As Iran and U.S. officials signaled progress toward a cease-fire that remained fragile, the shipping industry continued to brace for potential disruptions. The Baltic Exchange faced a lawsuit from Mercuria over tanker route rates disrupted by the Iran war, while shipping companies reported biological infestations on vessels trapped in the Gulf that could impede their departure when the conflict ends. Meanwhile, the U.S. military redirected 100 commercial vessels during its six-week-long blockade of Iran's ports, Central Command confirmed, highlighting the extensive impact of the conflict on global trade routes.

AI Revolution Market Effects

The artificial intelligence revolution continued to reshape market dynamics, with the bellwether industrial metal copper trading like a high-flying tech stock as investors bet that skyrocketing power use for AI would fuel a surge in demand. In the space sector, excitement built around SpaceX's upcoming IPO, with the company aiming for civilization on Mars while preparing what could be the largest initial offering ever. The sheer volume of the expected listing is so substantial that trading may not open until the afternoon. Meanwhile, nuclear companies capitalized on AI-driven demand, with Deep Fission Inc. filing for a $156 million IPO as artificial intelligence data centers stoked demand for electricity.

Cryptocurrency Market Developments

Cryptocurrency markets experienced mixed signals as the Securities and Exchange Commission gave approval to Nasdaq to list index options based on Bitcoin prices, the latest sign of Wall Street's growing integration with digital assets. However, Bitcoin investors sold heavily just as prices began to recover, exposing an uncomfortable dynamic in the crypto market's structure where price levels that should draw buyers back in instead prompt some of the heaviest selling pressure.

Central Bank Policy Shifts

Central bank policies remained under scrutiny as European Central Bank Governing Council member Yannis Stournaras suggested a rate hike may be inevitable to preserve the ECB's credibility, while Federal Reserve Governor Christopher Waller signaled the next move would likely be a rate hike. Traders ramped up bets on monetary tightening after Waller warned that the Iran war's energy shock could fuel inflation. In Europe, a key measure of euro-area pay growth slowed before the war drove inflation up, providing some relief to ECB officials worrying about emerging inflation risks.

Corporate M&A & IPO Activity

The mergers and acquisitions landscape saw significant developments, with German food delivery company revealing a takeover bid from Uber at a €10 billion valuation, while rival Door Dash was also said to have approached the company. In the beauty sector, Estée Lauder and Puig ended merger talks to create a beauty powerhouse, with shares in the US cosmetics giant jumping 11.5% in post-market trading as investors welcomed the end of discussions. AS Watson, the owner of Superdrug, pressed ahead with a $30 billion dual listing in Hong Kong and London despite market volatility, while investors braced for a Big Tech IPO bake-off as SpaceX, OpenAI and Anthropic targeted the same market.

Emerging Market Developments

Emerging markets faced mixed fortunes, with Bangladesh's central bank unveiling a $5 billion fund to spur economic growth, revive shuttered factories and support small businesses. In the Philippines, the Bureau of Treasury announced plans to sell up to 30 billion pesos ($487.4 in treasury bonds due July 2030. Meanwhile, foreign selling in Indian equities may extend into next year according to Bof A Global Research, as Asia's artificial-intelligence winners offer stronger earnings prospects at cheaper valuations.

Fixed Income & Credit Markets

Fixed income markets showed signs of stress as South Korea announced it would cut debt issuance in June as the government stepped up its defense of the bond market amid pressure. In the private credit sector, what was once unthinkable became reality as managers increasingly traded loans to dump troubled assets and hunt for bargains amid the industry's first stress test after years of growth. The 2023 bank runs continued to offer insights into the true nature of the private credit market, with analysts examining lessons learned about stress in the system.

Commodity Market Shifts

Commodity markets experienced significant volatility as fertilizer costs spiked due to the Iran war, hitting