Public Markets 3 Days

Last updated: May 25, 2026, 8:31 AM ET

Global Markets Rally on Iran Peace Hopes, Oil Slumps Below $100

Global markets gained ground over the past three days as optimism surrounding U.S.-Iran peace talks drove oil prices below $100 per barrel for the first time in weeks. A supertanker carrying Iraqi crude successfully exited the Persian Gulf and crossed into the Arabian Sea, signaling potential progress in reopening the critical Strait of Hormuz. European natural gas slid 5% as U.S. officials signaled progress toward a deal with Iran, while an LNG tanker bound for India made its first transit through the strait since the conflict began. The weaker dollar also helped gold prices rise to $2,340/oz, as the precious metal benefited from both geopolitical optimism and a decline in the U.S. currency.

Currencies Strengthen as Dollar Weakens

The euro, sterling, and riskier currencies like the Australian dollar rose against the dollar as prospects of a U.S.-Iran peace deal improved risk appetite. India's rupee strengthened significantly following the decline in oil prices and comments from the Reserve Bank of India Governor that the currency may be undervalued. Meanwhile, U.S. forces redirected 100 vessels during their six-week blockade of Iranian ports, though market participants increasingly believe the blockade may soon end, further boosting emerging-market currencies.

Tech Giants Dominate Bond Markets Amid AI Boom

Major technology companies continued to dominate bond markets as they race to build AI data centers, despite concerns about overvaluation. SoftBank tapped the retail market again with a $1.6 billion yen bond offering, while Danaher Corp. completed a record $3 billion private-placement bond sale. The AI sector also drove momentum stocks to their best run on record, with retail traders in Japan increasing off-exchange trading volume by nearly double in the past 12 months. Nasdaq received SEC approval to list Bitcoin index options, further integrating cryptocurrency into traditional financial markets.

Emerging Markets React to Energy Price Relief

Emerging-market stocks and currencies rose significantly as oil prices fell below $100 per barrel, easing inflation concerns for many developing economies. Bangladesh's central bank launched a $5 billion fund to spur growth and revive shuttered factories, while Indonesian banks faced pressure after selling $1.1 billion in pension loans to Bank BTN. However, India's state-owned lenders weakened as bond yields rose to two-year highs, and Sri Lanka's rupee is expected to recover by year-end as oil prices ease and the central bank raises rates.

Asian Markets See Mixed Performance Amid Regional Pressures

Asian markets displayed a mixed performance as regional factors offset global optimism. China's new solar installations fell for a fourth straight month, underscoring persistent weakness in domestic demand. Chinese firms accelerated plans to build new coal power plants despite government efforts to rein in expansion. A Chinese online brokerage tycoon lost $1.7 billion in a single day after Beijing cracked down on cross-border stock trading, while Chinese investors rushed to find alternatives for overseas equity trading. South Africa's Pick n Pay slumped after delaying a key turnaround target by a year, tempering investor optimism.

Central Banks Signal Policy Shifts as Inflation Persists

Central banks began signaling potential policy shifts amid persistent inflation pressures. BlackRock's Saigal suggested that the Federal Reserve may have sufficient justification for an interest rate cut rather than a hike under new chairman Kevin Warsh. European Central Bank President Christine Lagarde indicated that the central bank is set to lift its inflation outlook at the next policy meeting. In Japan, rising bond yields deepened the performance gap between regional banks with weaker and stronger investment portfolios, while Japan's financial regulator urged firms to use cash for growth rather than shareholder returns.

IPO Pipeline Remains Active Despite Market Volatility

Despite market volatility, the IPO pipeline remained active across multiple sectors. Rapid-commerce firm Zepto plans to file for a $1 billion