Public Markets 3 Days

Last updated: May 26, 2026, 2:35 PM ET

Equities

The Knicks' first NBA Finals appearance in nearly three decades sent Madison Square Garden Sports shares to a record high on Tuesday, capping a remarkable rally for the sports franchise. Meanwhile, the SpaceX IPO filing continued to fuel euphoria across space and satellite stocks, with the sector posting sharp gains as investors bet on the expanding commercial space economy. The enthusiasm spread to semiconductor names, with U.S. chip stocks rising premarket following overnight rallies in Hong Kong and South Korea, while Chinese semiconductor stocks advanced in Hong Kong on optimism around Huawei Technologies' potential tech breakthroughs.

Taiwan overtook India as the world's fifth-largest stock market by market value, driven primarily by the breakneck rally in Taiwan Semiconductor Manufacturing Co., the world's largest chipmaker. The island's market capitalization now exceeds $3 trillion, reflecting the AI-driven surge in semiconductor demand. European markets were muted after six consecutive days of gains as traders monitored Middle East tensions, with Ferrari dropping amid investor backlash over its first electric vehicle launch.

Fixed Income & Rates

Treasury yields continued their upward climb, posing what may be Treasury Secretary Scott Bessent's biggest market test yet as benchmark rates generate economic headwinds. The bond selloff reflects more than inflation concerns—analysts point to a higher real rate regime that has shifted the entire yield curve higher. Citadel Securities warned the Fed risks "falling behind the curve" and should consider hiking rates as consumer prices become the dominant economic threat.

At the ECB, officials signaled a likely upward revision to inflation forecasts in June as the Iran war keeps energy prices elevated. Chief Economist Philip Lane told Nikkei the central bank would have much more information at its June meeting. Governing Council member Yannis Stournaras urged the ECB to avoid overly restrictive policy that could further burden economic activity, while fellow policymaker Klaas Knot emphasized the bank would do everything in its power to tame inflation. Hungary held its key interest rate at the second-highest level in the EU, with a cut seen as possible in June.

BlackRock's Saigal argued there are "sufficient factors" to justify a Fed rate cut rather than a hike, while JPMorgan strategists said markets are overpricing rate hike risks, creating conditions for a rally in low-volatility stocks like utilities and staples.

Banking & Financials

Webster Financial Corp. shareholders approved the $12 billion takeover by Banco Santander, clearing one of the last hurdles for the deal. Canada's major banks are expected to post solid second-quarter results, though focus shifts to credit-loss provisions and the outlook amid soft economic conditions. PGIM has financed about $4 billion of land-banking projects through a partnership with Domain Real Estate Partners, part of a push to gain exposure to the U.S. housing market.

IPOs & New Listings

The Roundhill Memory ETF reached $10 billion in record time, becoming the fastest ETF in history to hit that milestone after surging 87% within 50 days of its April launch, riding AI enthusiasm. KNDS, the Franco-German tank maker, said it's pushing ahead with IPO plans as surging demand drove earnings and sales last year. Safepoint Holdings is seeking up to $283.3 million in its U.S. IPO, while Greenbriar-backed Applied Aerospace & Defense is targeting a $682.5 million raise.

Energy

Oil prices rose 2% as U.S. strikes on Iran added uncertainty to Hormuz Strait negotiations. Commercial shipping through the strait gained modest momentum as at least two non-Iranian supertankers exited the Persian Gulf, while an LNG tanker exited Hormuz for India for the first time since the Iran war began. U.S. natural gas futures increased as producers reduced output over the holiday weekend and more supplies flowed to Gulf Coast LNG export terminals. French power prices soared as scorching summer temperatures raised concerns about potential nuclear curtailments and lower hydro availability.

Commodities & Materials

The housing market faces new headwinds from soaring copper, lumber, diesel and aluminum prices, with the typical U.S. home containing over 400 pounds of copper. Goldman Sachs analysts said the UK homebuilder selloff has gone too far, arguing investors are too pessimistic on the sector's long-term profitability. Uzbekistan resumed full-scale gold exports in April after a six-month pause, shipping $1.5 billion through the month.

M&A

Warner Bros. Discovery boosted a loan sale for the second time, a move that will allow the media giant to fully replace $15 billion of short-term financing. Eli Lilly agreed to buy three vaccine developers for up to $4 billion, targeting shingles, Epstein-Barr virus and other pathogens. Activist investor Ancora is pushing H.B. Fuller to abandon its proposed takeover of UK-based Advanced Medical Solutions.

Corporate Governance

BP's board fired Chairman Albert Manifold just months into the job after serious concerns were raised about governance standards, oversight and conduct—the third chair to depart the oil major in recent years. The removal marks a dramatic escalation of the company's leadership crisis.

Economy

US consumer confidence edged down in May as views of current economic conditions settled back amid rising prices due to the Iran war. Emerging market currencies weakened as overnight clashes near the Strait of Hormuz offset signs of progress toward a U.S.-Iran peace deal, while political risk is derailing rallies across developing nations from Latin America to Eastern Europe.