Public Markets 3 Days

Last updated: May 28, 2026, 8:30 AM ET

Energy & Commodities

Oil futures jumped 3.2% after U.S. strikes on Iran reignited Middle East tensions, with Brent crude touching $82 a barrel as Tehran retaliated with drone attacks on commercial shipping in the Strait of Hormuz. The Hormuz Hope Rally quickly unraveled as supertankers exited the region, while jet fuel costs spiked 8%, pressuring airline bonds and raising concerns over summer travel disruptions. A surge in aluminum prices pushed China Hongqiao's Zhang Bo past the $48 billion mark, cementing his position among Asia's wealthiest industrialists as Chinese crop belts faced flood risks.

Fixed Income

Japanese government bonds extended gains tracking overnight Treasury rallies as traders increasingly price in a September Fed rate cut, with Treasury yields falling amid hopes for de-escalation in the Gulf. However, U.S. airline bonds weakened on jet fuel spikes, while Chicago's planned muni bond sale tested investor appetite amid geopolitical uncertainty. The AT1 bond market heated up with European lenders selling record-long capital securities, including PolarDC's $930M junk bond deal, as SocGen CEO admitted efficiency lags and Sasol's stock doubled on optimism.

Equities

The S&P 500 hit a record high as Iran peace hopes overshadowed military strikes, with stock futures pointing to modest losses amid mixed signals from Nvidia's AI chip exports to China. Best Buy posted higher profit driven by gaming and mobile demand, while Dollar Tree logged revenue growth as consumers gravitated toward low-cost retailers. Kohl's narrowed losses on improved sales, and Burlington raised its outlook after strong quarterly performance, though Kingfisher's like-for-like sales fell despite Screwfix's 4.1% growth.

Global Markets

Taiwan overtook India as the world's fifth-largest stock market powered by TSMC's breakneck rally, while Korea's pension fund raised domestic stock targets as Kospi surged. Airwallex moved staff out of China amid U.S.-China rivalry, and Dubai's Noon emerged as a retail trader favorite with a 1,700% stock surge becoming a short bet. JD.com's founder vowed to protect jobs from AI, countering ByteDance's AI team special stock offer in China's intensifying tech talent war. HDFC Bank shares dropped on governance allegations, while HDFC Capital Advisors aimed to double fund size.

Currency & Rates

The dollar weakened as Middle East tensions eased, with oil prices climbing offsetting U.S. natural gas futures rising. Eurozone issuers turned to non-euro debt to attract new investors, while Ireland banned Israeli settlement trade amid BDS movement pressure. Kenya planned $772M green bonds for agriculture, and Guatemala agreed to joint strikes with U.S. on drug gangs. Four in 10 wealthy Asian boomers lacked succession plans, highlighting wealth transfer risks.

Sector Movers

Li Auto suffered losses as hybrid sales slowed, while XPeng returned to losses despite stronger margins. Soitec shares jumped sevenfold on restored free cash flow, and BioMar's IPO rose in Copenhagen as Denmark's biggest listing in years. Stellantis planned 11 new commercial vehicles by 2030, while Lufthansa assured fuel stability urging summer bookings. Hormel reported lower profit and warned on annual outlook, as Universal Music blocked Ackman's bid for Bill Ackman's $65B challenge.

Market Sentiment

Retail trader participation rebounded after hitting a four-year low, with Robinhood offering AI chatbots amid an AI arms race among brokers. Goldman Sachs warned on Korea's chip ETF volatility, while Deutsche Bank's CEO pay hike failed investor approval. SEC eyed IPO rule changes to reduce gun-jumping, and FTSE Russell faced scrutiny over telecom valuations. Israel's isolation deepened as Trump's Middle East map reshaped, with Mexico hosting Iran players during wartime.