Public Markets 3 Days

Last updated: May 28, 2026, 8:33 PM ET

Middle East Developments & Energy Markets

Oil futures fell 1.3% in early Asian trade after reports that the US and Iran reached a tentative deal to extend their ceasefire by 60 days, potentially allowing shipments through the Strait of Hormuz to resume. The proposed truce extension lifted energy prices briefly before crude settled higher as traders awaited confirmation of the draft agreement that would include reopening the critical waterway. Meanwhile, gold held gains near $2,340/oz as the ceasefire hopes eased inflation concerns and reduced bets on higher interest rates. The dollar weakened against major peers following the diplomatic breakthrough, with Treasuries rallying as investors priced in a September Fed rate cut. US defense capital goods orders surged to $2.9 billion in April, reaching the second-highest level on record as the Iran conflict boosted demand for military hardware.

Retail Sector Earnings & Consumer Trends

Gap Inc. cut its full-year sales outlook to 1%-2% growth from the prior 2%-3% forecast, citing slower Old Navy performance that dragged on revenue expectations. American Eagle Outfitters reported declining sales in its core women's category during the first quarter, with management acknowledging the segment isn't performing as desired amid competitive pressures. Best Buy posted higher first-quarter profit driven by strong gaming, computer and cellphone demand that boosted revenues and margins. Hormel Foods achieved its sixth consecutive quarter of organic top-line growth while lifting fiscal second-quarter sales, marking progress in its turnaround strategy. Burlington Stores raised its annual outlook after first-quarter sales jumped and profit exceeded expectations, as inflation-wary consumers gravitated toward value offerings.

Asian Markets & Technology Pivot

XPeng Inc. slipped back to a loss in the first quarter despite stronger margins, as Chinese electric-vehicle makers struggle with demand weakness and pricing competition. China's battered consumer-focused funds are pivoting to technology as prolonged demand slumps force even committed backers to rethink strategy allocations. Tesla Inc. logged 67% European sales growth in May, signaling Elon Musk's EV maker is regaining momentum in the region after a more than one-year slump. The chip and memory stock frenzy reflects semiconductor sectors catching up to AI spending while software lags broader market gains.

M&A Activity & Capital Raising

Worthington Steel Inc. raised $1.4 billion in the leveraged-finance market to fund its acquisition of German metals company Klöeckner & Co SE, marking one of the largest recent deals in European metals consolidation. IREN Ltd. borrowed approximately $3.6 billion to provide computing capacity to Microsoft Corp., as the data center operator secures financing for Nvidia chip installations. Digital Bridge Group Inc. acquired energy private equity firm ArcLight for $1 billion, joining Wall Street heavyweights striking partnerships to secure power for AI infrastructure. Bank of Nova Scotia boosted its dividend payout while logging fiscal second-quarter profit growth on lower credit-loss provisions and segment expansion.

Regulatory Battles & Legal Developments

ABC accused the Federal Communications Commission of threatening its station licenses in what the broadcaster called "unconstitutional retaliation," marking the latest escalation in a feud that has seen the network comply with early renewal demands while pushing back on constitutional grounds. President Trump refiled a $10 billion defamation lawsuit against The Wall Street Journal after an earlier version focused on an Epstein birthday note was dismissed by a judge. The Supreme Court allowed a death row inmate to challenge the exclusion of Black jurors from his trial jury, potentially reopening decades-old conviction questions. FTC Chair Ferguson announced an antitrust investigation into rising US fertilizer costs, targeting an industry that has faced scrutiny over pricing practices.

AI Infrastructure & Technology Sector

Amazon.com Inc. scrapped an internal AI leaderboard that tracked employee usage scores, with senior executive Dave Treadwell telling staff not to "use AI just for the sake of using AI" amid rising costs and questions about productivity gains. Anthropic raised $65 billion in funding that valued the AI startup at $900 billion, surpassing OpenAI's $730 billion valuation as the companies duel for artificial intelligence dominance. BCG CEO Christoph Schweizer pointed to higher revenues and headcount in response to predictions that AI technology is reshaping consulting payment models and client relationships. The EU drafted crisis powers that could force chipmakers to override existing contracts and seize control of semiconductor supplies amid supply chain concerns.

Fixed Income & Bond Markets

Japanese government bonds extended their rally tracking overnight gains in US Treasurys as traders priced in potential Fed easing, though rising yields now signal inflation risks beyond healthy monetary normalization. The bond selloff intensified as real rates climbed, creating pressure across government and corporate debt markets. European Central Bank officials warned leveraged hedge fund bets pose risks to bond market stability, particularly as private credit fuels the AI boom. Five charts show rising yields reshaping Japanese markets as the Bank of Japan's monetary policy transition creates volatility in the world's largest bond market outside the US.

IPO Market & Private Equity

Entrata Inc., the property-management software company backed by Silver Lake, filed for an initial public offering as private equity firms seek exits in the proptech sector. Nuclear power startup Newcleo plans to go