Public Markets 3 Days

Last updated: May 24, 2026, 2:31 PM ET

Equities

The S&P 500 clinched its longest weekly winning streak since 2023, rising for an eighth consecutive week as AI enthusiasm continued to fuel market optimism. However, the rally remains heavily concentrated in technology stocks, with the equal-weighted S&P 500 essentially unchanged since the Iran war began, highlighting narrow market leadership. Meanwhile, IPO mania is raising concerns among some analysts who warn that a potential deluge of AI-related equity supply could signal a market top, removing a key source of price support.

In deal activity, Delivery Hero disclosed a €10 billion takeover bid from Uber, with the German food delivery group also having received interest from Door Dash, signaling continued consolidation in the sector. Centerbridge Partners is in talks to acquire a stake in Merritt Properties, a $3 billion real estate firm, amid a busy stretch for acquisitions in commercial property. Separately, GameStop's board asked shareholders to approve a massive increase in its authorized share count as the retailer pursues a potential acquisition of eBay.

Fixed Income & Rates

Bond strategists are warning that Treasury yields will remain elevated even if the Iran war ends, as other drivers beyond conflict-related inflation fears continue to pressure longer-term borrowing costs. Government borrowing costs have reached their highest levels since 2007 after three months of the conflict, with the war potentially adding billions of dollars in additional interest payments to the US debt. The Federal Reserve's preferred inflation gauge is rapidly approaching 4% as war-driven energy cost spikes generate concern that price pressures will broaden beyond commodities.

Danaher Corp. completed a record $3 billion private-placement bond sale, the largest ever in that market segment, as companies rush to lock in financing before potential further rate increases. Meanwhile, Kevin Warsh has vowed to usher in "regime change" as the new Federal Reserve chair, though Fed watchers say there are limits to how much he can revamp independently and that consensus-building will be necessary.

Commodities

Gold ended the week 0.76% lower at $4,521 per ounce, snapping a two-session winning streak as the dollar strengthened. Copper, meanwhile, is trading like a high-flying AI stock as investors bet that skyrocketing power demand from artificial intelligence will fuel a surge in the industrial metal. Trafigura Group has moved to withdraw hundreds of millions of dollars of copper from London Metal Exchange warehouses as lucrative trading opportunities emerge in both the US and China.

Emerging Markets

Political risk is derailing rallies across emerging markets, with investors getting slammed by a fresh wave of turmoil from Latin America to Eastern Europe. Turkey's markets are turbulent after a court ordered the removal of the main opposition party's leadership, prompting top economic policymakers to meet on measures to stabilize the lira. Meanwhile, Bangladesh's central bank unveiled a 600 billion-taka ($5 package to boost economic growth, revive shuttered factories, and support small businesses.

Asia-Pacific

Lenovo shares approached all-time highs after the company reported strong AI-related earnings growth that offset challenges from rising component prices. In Japan, Toyota's finance unit set terms for a ¥100 billion ($629 bond sale, with the five-year coupon climbing to the highest level since the company's 1999 yen-denominated bond debut as yields rise. South Korea's stock market, the world's best-performing yet most volatile, is set to debut its first single-stock leveraged exchange-traded funds this week, tools that could amplify both gains and losses for the nation's active retail traders.

China

China launched an unprecedented crackdown on illegal cross-border securities trading, threatening severe penalties against popular brokers and ordering non-compliant accounts to be liquidated. The move comes as Chinese authorities seek to stabilize capital markets amid ongoing economic challenges. Separately, a coal mine blast in China is raising questions about the cost of President Xi Jinping's energy security push, as the world's largest coal producer works to shield its economy from the worst of the Iran war shock.

Europe

Commerzbank rallied shareholders in its fight for independence from UniCredit at the German lender's annual meeting, where long-suffering investors finally had something to cheer. The ECB is facing pressure to raise rates as the Iran war feeds inflation, with Governing Council member Martin Kocher saying the central bank is heading for an interest-rate increase next month unless a sustainable peace deal is reached. Financial reforms are set to give a £1.6 billion boost to the City of London, according to a government assessment as Chancellor Rachel Reeves champions the district as a driver of economic growth.