Public Markets 3 Days

Last updated: May 24, 2026, 8:32 AM ET

Global Equity Markets

U.S. stocks extended their winning streak to eight consecutive weeks, the longest such run since 2023, as hopes for a durable peace agreement between the U.S. and Iran fueled optimism across Wall Street. The S&P 500 clinched its eighth straight weekly gain amid continued enthusiasm surrounding artificial intelligence and other emerging technologies, even as the fundamental question of reopening the Strait of Hormuz remained deadlocked after nearly three months of fighting. Meanwhile, emerging-market assets posted a positive week as investors grew increasingly confident that Washington and Tehran are moving toward a deal, with both stocks and currencies advancing on the outlook for reduced geopolitical risk.

IPO Mania and Market Concentration

The anticipated flood of AI-related equity supply from mega-IPOs including SpaceX, OpenAI, and Anthropic threatens to push tech concentration beyond bubble-era levels, according to Bank of America's Michael Hartnett, who warned the market resembles the roaring 1920s. The blockbuster IPO pipeline is expected to force passive investors to dump billions in existing shares to make room for the new entrants, with Goldman Sachs reportedly securing a leading role in SpaceX's anticipated listing after what one source described as a "dogfight" among banks clamoring to lead what could be the largest-ever initial public offering. European issuers are already adjusting: OHB and KNDS are considering delaying their share sales to avoid competing with SpaceX's market-disrupting debut. A potential deluge of AI-related equity supply removes a key source of upthrust for prices, raising questions about whether the IPO mania signals a market top.

Federal Reserve and Inflation

The Federal Reserve's favored inflation gauge is rapidly approaching 4% as a war-driven spike in energy costs generates concern that price pressures will broaden beyond commodities. Kevin Warsh, sworn in as the new Fed chair, has vowed to usher in "regime change" at the central bank, though Fed watchers caution there are limits to how much he can revamp independently and that even in areas where he has latitude, building consensus will require patience. The disconnect between equity markets and consumer sentiment is striking: stocks are partying like it's 1999, but Americans haven't been this gloomy in 70 years, with the S&P 500 never performing so well while public mood remains so sour.

Central Banks Under Pressure

The European Central Bank faces mounting pressure to raise rates as the Iran war feeds inflation. Governing Council member Martin Kocher said the ECB is heading for an interest-rate increase next month unless a sustainable peace deal emerges, while fellow policymaker Yannis Stournaras argued a hike may be inevitable to preserve the bank's credibility. Inflation in the euro zone's four biggest economies probably jumped in May or held at an already robust pace, fueling the case for tightening. ECB President Christine Lagarde stressed that long-term inflation expectations remain broadly in line with the 2% target despite deepening fallout from the conflict. Meanwhile, South Korea's finance ministry and central bank said they were closely monitoring the dollar-won exchange rate and would take decisive action if necessary as the won moved excessively.

Asian Markets and Currencies

India's central bank may need to draw on its 2013 taper tantrum playbook to defend the beleaguered rupee, which has plunged as the Iran war disrupts energy imports. The Philippine central bank will have to react aggressively to avoid falling behind the curve in taming price pressures, Governor Eli Remolona said, though he suggested the peso at 63.50 per dollar might be acceptable as long as the decline is measured and not inflationary. Bangladesh's central bank unveiled a 600 billion-taka ($5 package to boost economic growth, revive shuttered factories, and support small businesses. In Japan, Toyota's finance unit set terms for a ¥100 billion bond sale with the five-year coupon climbing to the highest since the 1999 debut as rising yields drive up borrowing costs.

Corporate and Deal Activity

Delivery Hero revealed an Uber takeover bid at a €10 billion valuation, with the German food delivery group also approached by rival Door Dash, according to people familiar with the situation. Game Stop asked shareholders to approve a massive increase in its authorized share count as the video-game retailer pursues an acquisition of eBay Inc. Workday posted better-than-expected results in the first quarter, helping quell concerns that the company will be disrupted by artificial intelligence. Julius Baer shares fell after the wealth manager said client money inflows slowed at the beginning of the year due to its new risk approach and uncertainty about the Middle East war. Meanwhile, the world's most fervent day traders in South Korea are set to gain access to the country's first single-stock leveraged exchange-traded funds this week, tools that could amplify both gains and losses in an already volatile market.