Public Markets 3 Days

Last updated: May 28, 2026, 11:34 PM ET

Energy & Commodities

Oil futures plunged toward worst monthly performance since 2020 as the U.S. and Iran neared a 60-day truce extension, with Brent crude poised for a 15% decline on hopes that flows through the Strait of Hormuz could resume. Industrial metals surged for their best month since January after the tentative ceasefire deal eased supply disruption fears, while aluminum prices rallied enough to push China Hongqiao's Zhang Bo past the $48 billion threshold. However, Chevron's chief warned that oil prices could spike over the summer as the blockade has removed up to 13 million barrels daily from global markets, depleting strategic reserves. China's export prices jumped at the sharpest three-year pace of 4.2% amid the oil shock and AI investment boom that sent chip prices soaring, suggesting inflationary pressures may persist despite diplomatic progress.

Fixed Income & Currencies

Japanese government bonds traded mixed in Tokyo as signs of a U.S.-Iran agreement balanced against rising benchmark yields, with Asian currencies consolidating against the dollar amid cautious optimism about de-escalation. The dollar's monthly rally left strategists wary of further gains after traders priced in higher U.S. interest rates, while Finance Minister Katayama signaled Japan could intervene if currency volatility intensified. Credit Agricole sold ¥106.5 billion of samurai bonds with wider spreads than domestic corporate debt, as Japanese banks stoked a hybrid bond boom to fund regulatory capital requirements amid rising yields. Emerging market currencies slid on Iran war confusion, with traders weighing the tentative truce against overnight military skirmishes near the critical shipping chokepoint.

Equity Markets & IPO Activity

Anthropic secured $65 billion in funding to reach a $900 billion valuation, overtaking OpenAI's $730 billion mark and cementing its position as the world's most valuable AI startup. SpaceX lowered its IPO target to at least $1.8 trillion despite Musk's tweet undermining claims about its Anthropic data center deal, while Powerlaw Corp. prepared a Nasdaq debut as a closed-end fund holding stakes in both SpaceX and OpenAI. Memory chip giant CXMT moved toward China's largest IPO since 2022, and chip stocks raced toward their biggest gains since the dotcom era with the Philadelphia Semiconductor Index up 75% in 2026. Worthington Steel raised $1.4 billion in leveraged finance markets to fund its Klöeckner takeover, even as ASX shares eyed nearly decade lows after profit downgrades from rising costs.

Banking & Financial Services

U.S. lenders posted winning first quarters despite war and rising rates, with FDIC data showing improving key metrics even as paper losses modestly increased. TD Bank lifted its dividend after strong operations performance, joining other Canadian banks in returning cash to investors, while CIBC agreed to sell its 91.7% Caribbean stake for $1 billion cash plus $645 million in Butterfield shares. Societe Generale's CEO declared efficiency 'at bottom of class' after three years at the helm, vowing continued restructuring as the bank lags peers. The SEC considered gun-jumping rule changes to spur more IPOs by relaxing decades-old communication restrictions during the going-public process.

Retail & Consumer Discretionary

Best Buy reported higher first-quarter profit on rising sales driven by strong gaming, computer and cellphone demand, while Costco's third-quarter earnings rose as value offerings attracted inflation-weary consumers. Gap cut its full-year outlook to 1-2% revenue growth from 2-3% after slower Old Navy performance, and American Eagle flagged falling sales in its core women's category. Dollar Tree logged higher profit and revenue as its value proposition resonated amid uncertain macro conditions, though Xiaomi's profit buckled from soaring memory prices and soft demand. Kohl's narrowed losses on better same-store sales, signaling its turnaround may be taking hold.

Technology & AI Infrastructure

The chip and memory stock frenzy intensified as semiconductors caught up to AI spending, with Nvidia's Jensen Huang joining a prestigious Beijing university board alongside Apple's Tim Cook to maintain China ties. Amazon scrapped its AI leaderboard to stop workers chasing usage scores, with executive Dave Treadwell telling staff "don't use AI just for the sake of using AI" as costs rise. Pimco warned junk debt for data centers is diverging into two markets, urging caution as winners and losers emerge in AI infrastructure financing. Synopsys added Elliott partner Jesse Cohn to its board as activist investor pressure mounts for strategic changes.

Geopolitical Risk & Legal Developments

India stepped up stake sales as Iran war strains finances, with the asset-sale push continuing even as equity capital market activity slowed over two months. Trump's Iran approach sowed confusion with pendulum swings that seemed mood-driven rather than strategic, while the White House dismissed an unofficial deal outline despite U.S. and Iranian officials drawing up a draft agreement. U.S.-backed rare earth rivals clashed over alleged technology theft as companies supported by the Trump administration compete to break China's dominance. Legal battles intensified in the Strait of Hormuz standoff, with both sides deploying economic warfare in a stalemate that threatens 13 million barrels daily of oil flows.

Market Sentiment & Outlook

Inflation-wary investors poured into ultrashort bond funds as traditional portfolio diversifiers proved challenged, with BlackRock noting that short-dated instruments offer better protection against persistent price pressures. Corporate bonds offered high yields but traded close to perfection pricing, creating a potential disconnect for risk-focused investors. JPMorgan strategists pointed to retail revival as potentially fueling U.S. stocks, with